In the world of decentralized finance (DeFi), most lending – borrowing platforms only support a limited number of assets, usually revolving around popular tokens like ETH, USDT, or BTC. This causes a huge amount of value from thousands of other tokens to be 'forgotten' and unable to participate in the liquidity creation process.

@Dolomite appears to address this exact issue. With the ability to support over 1,000 different types of assets, Dolomite becomes a unique DeFi platform, expanding opportunities for users and projects, while also protecting DeFi-native rights – meaning users do not have to sacrifice governance rights, staking features, or the native utility of the token when participating in lending or borrowing.

Dolomite's vision

#Dolomite aims to become an ‘open financial center’ where anyone can:

  • Lending to receive dynamic interest based on supply – demand.

  • Borrowing with various diverse assets, including tokens that are seldom accepted by other platforms.

  • Leveraging DeFi-native rights: Tokens retain their native functions such as staking, governance, farming, instead of being locked in a pool.

Unlike traditional finance – where banks decide which assets are allowed to be collateral – Dolomite returns the decision-making power to users and the community.

The underlying technology of Dolomite

Advanced smart contract infrastructure

Dolomite builds a smart contract system specifically designed to handle the complexity of over 1,000 assets, ensuring both flexibility and maintaining strict risk governance discipline.

Transparency

All transactions – from lending, borrowing, to earning interest – are displayed directly on the blockchain. This eliminates the inherent opacity of centralized exchanges, enhancing user trust.

Composability

Assets in Dolomite are not ‘locked’ in one place. Users can both lend/borrow, while continuing to use those assets in other DeFi protocols such as farming, DAO governance, or staking. Dolomite becomes a connecting hub in the vast Web3 network.

Lending mechanism on Dolomite

Users deposit assets into Dolomite → assets are placed into the liquidity pool → others can borrow → depositors receive interest.

  • Dynamic interest rates: Low supply – high demand → interest rates increase, providing higher returns for lenders.

  • Asset diversity: Not only ETH, BTC, or USDT but also new or small-cap tokens can be profitable.

  • Preservation of rights: Governance tokens can still vote, staking tokens maintain their staking value when participating in lending.

The borrowing mechanism on Dolomite

Users deposit collateral (over-collateralized) → can borrow other types of tokens as needed.

Highlights:

  • Freedom to choose collateral: Over 1,000 supported tokens.

  • Capital efficiency: Collateral is not ‘frozen’ but can still participate in other DeFi activities.

  • System safety: The over-collateralization mechanism protects lenders from default risk.

Ways to earn profits on Dolomite

  1. Lending interest rates – a basic and stable source of income.

  2. Incentives – liquidity incentive programs, especially useful for small community tokens.

  3. Leveraging composability – simultaneously earning lending interest, participating in farming, DAO governance, or staking.

Thanks to this, Dolomite helps multiply the profitability for users compared to traditional platforms.

The significance of Dolomite in DeFi

  • Comprehensive liquidity: Instead of just focusing on a few large tokens, Dolomite ‘opens the door’ for all tokens to participate.

  • Promoting fairness: Users do not have to sacrifice their native rights when participating in the platform.

  • Market growth: Creating liquidity flows for thousands of previously neglected tokens, thus stimulating trading, profit, and the development of the entire ecosystem.

Strengths of Dolomite

  • Asset diversity: Over 1,000 tokens – an unprecedented number.

  • Empowering users: Retaining governance rights, staking, utilities.

  • Composability: Flexible assets, not locked up.

  • Absolute transparency: All activities are publicly displayed on the blockchain.

  • Scalability: Strong infrastructure, easily adaptable when new tokens emerge.

Challenges and risks

  • Risk management: Supporting too many tokens means high volatility risk.

  • Complexity: New users may find it difficult to fully grasp the features.

  • Competition: The DeFi market is crowded, and competitors can replicate the model.

  • Regulatory framework: DeFi is increasingly being monitored, especially in the lending sector.

  • Technical scalability: Need to ensure the system operates smoothly when user numbers spike.

Market opportunity

  • The trend of moving away from traditional banks → The demand for decentralized lending and borrowing is increasing sharply.

  • Supporting small projects → Tokens that are less listed gain additional liquidity.

  • Attractive to institutions → A platform with over 1,000 assets can attract large capital flows.

  • Cross-chain connectivity → Dolomite can become a liquidity ‘bridge’ in the future.

  • Brand positioning → “The largest multi-asset lending and borrowing platform in DeFi.”

Conclusion

Dolomite is not just a lending protocol – borrowing. It is a significant advancement in reshaping the DeFi ecosystem:

  • Turning every token into an income-generating asset.

  • Maximizing user empowerment.

  • Increasing liquidity for the entire market.

In the future, Dolomite has the potential to become the new standard for DeFi lending, where any asset can participate, any user can profit, and any project can thrive. $DOLO

👉 In other words, Dolomite is the ‘future of lending and borrowing in DeFi.’