Many DeFi apps let you lend, borrow, or earn yield, but Dolomite takes it further.
It focuses on three things: wide asset support, strong capital efficiency, and keeping every token’s native rights intact.
Below is a clear walk-through of what makes Dolomite different, how it works, and where it might be heading.
Why Dolomite Stands Out
Typical lending markets force trade-offs:
You often lose staking rewards or governance power when you lock collateral.
Only a few big-name tokens—ETH, USDC, and the like—are accepted.
Risk tools for niche or yield-bearing assets can be weak.
Dolomite solves these gaps. It lets you use hundreds of ERC-20s, LP tokens, and yield assets as collateral without giving up staking rewards or voting rights.
In short, you can keep earning and stay liquid at the same time.
Core Design
Wide Asset Support – Even complex tokens such as GLP or GM tokens can be deposited while you continue to collect their rewards.
Isolation Mode – Each borrow position is separate, so a loss on one doesn’t endanger the rest.
Rights Preservation – Tokens keep their staking yields, governance access, or other perks while serving as collateral.
Tokenomics – The DOLO/veDOLO/oDOLO system rewards long-term stakers, liquidity providers, and active governance participants.
Multi-Chain Deployment – Running on Arbitrum, Mantle, Polygon zkEVM, and more keeps fees low and speeds high.
Practical Uses
Earn on Idle Assets – Lend rare or yield-bearing tokens and still enjoy their built-in rewards.
Borrow Without Selling – Unlock liquidity while staying exposed to your favorite coins.
Margin Trading & Hedging – Go long or short directly on Dolomite and manage portfolio risk.
Advanced Yield Loops – Borrow, buy more of the same asset, and repeat for amplified returns—if you watch your collateral ratios carefully.
Risks to Track
Price-Feed Errors – Exotic tokens rely on oracles that may lag.
Liquidation Liquidity – Illiquid assets can be costly to unwind.
User Complexity – Multiple positions and reward streams require careful monitoring.
Smart-Contract or Governance Issues – As with any DeFi platform, audits and transparent decision-making are critical.
Big Picture
Dolomite aims to be more than a money market.
By blending lending, borrowing, and margin trading into one system—and keeping token rights intact—it acts like a universal collateral layer for DeFi.
If the team continues secure integrations and strong community governance, Dolomite could become a key part of the next generation of decentralized finance.
