In DeFi, most traditional lending protocols operate under a pool-first model: pooling assets into a common reserve fund and prioritizing absolute safety for “standard” tokens. This makes it difficult or nearly impossible to list complex assets, long tail tokens.

@Dolomite take a different approach: building a platform based on internal balances, a multi-layer risk isolation mechanism, and a modular adapter system. As a result, Dolomite can safely expand its asset portfolio without compromising the integrity of the system.

1. Architecture design for 'difficult' tokens

  • Internal balances: When users deposit assets, they are converted into Dolomite Balances within the core contract. Transactions mainly involve updating the internal ledger rather than circulating tokens through multiple external wrapper layers. This minimizes operational costs and opens up the possibility of supporting many complex token types.

  • Adapters and modules: Each type of asset will have a dedicated adapter to handle staking, vesting, LP tokens, or oracle mechanisms. Meanwhile, new functions are deployed as modules, while the immutable core contract ensures safety. This approach allows Dolomite to add new assets without breaking the foundation.

2. 'Isolation First' risk model

  • Isolation by position: Each loan is a separate 'risk bucket.' If one asset is at risk, it does not automatically pull down the user's entire portfolio or the entire market. This is different from a pooled market, where risks spread easily.

  • Three levels of Isolation: Dolomite applies multiple layers of control: from allowing conditional combinations to the strictest level of not mixing and limiting loans. This way, 'spicy assets' can still be listed but within tight constraints.

3. Control mechanisms for listing long-tail assets

  • Pause Sentinel: Allows assets to be switched to a withdraw-only or borrow-pause state when the oracle fails or the underlying protocol encounters issues – without freezing the entire market.

  • Forced expirations: With time-limited tokens (e.g., yield tokens), Dolomite can force position closure before the expiration date to avoid a 'slow bleed' that puts pressure on liquidation.

  • Oracle & Cap discipline: Each asset has a borrowing limit, LTV, and clear oracle requirements documented in risk management, ensuring cautious deployment rather than floating everything from the start.

4. DeFi benefits without being 'frozen'

  • Virtual liquidity: When using tokens as collateral, users retain the right to stake, LP, and governance rather than being forced to unwrap into dead tokens.

  • Safety through isolation: Risky behaviors are 'trapped' within individual positions, not affecting the entire system. This encourages more diverse capital flows from token types that traditional protocols often reject.

5. Why are pooled lender models cautious?

  • Common reserve risk: A bad asset can threaten the entire reserve fund, forcing the project to tighten listing conditions and limit wrappers.

  • Surface attack explosion: When adding an adapter for complex tokens to a shared core contract, the security risks increase. Dolomite avoids this thanks to an immutable core design + separate modules.

Conclusion

#Dolomite does not 'say no' to long-tail assets to protect users, but chooses to isolate risks, zone positions, and preserve original DeFi rights. The combination of internal balances, modular adapter, and multiple layers of isolation allows Dolomite to manage hundreds of diverse asset types while maintaining system safety. While pooled lender protocols must be conservative, Dolomite can say 'yes' to more types of assets – but in a controlled manner. $DOLO