(An in-depth, sourced explainer: what it is, how it works, architecture, tokens, risks, audits, how to use it, and where it’s headed.)

> TL;DR — Dolomite is a decentralized lending, borrowing and trading protocol that emphasizes extreme asset breadth (claiming support for 1,000+ unique assets), capital efficiency, and composable DeFi primitives (Dynamic Collateral, Virtual Liquidity, isolated loans/markets, on-chain interest setting and oracles). This article walks through the product, architecture, economics, token model, security posture, common user flows, and trade-offs. Sources: Dolomite’s website and docs, Medium/announcements, GitHub, CoinGecko/CoinMarketCap listings and a number of exchanges/articles — all cited inline.

1) What is Dolomite? (short, precise answer)

Dolomite is a decentralized money-market and margin protocol that combines lending, borrowing and trading functionality while supporting a very large number of token markets (the project advertises support for over 1,000 unique assets). It is presented as capital-efficient and designed so deposited collateral can retain “DeFi-native rights” (staking, governance, yield strategies) while still securing loans.

2) Origins, timeline & where to find official materials

Official site & app: dolomite.io (primary product landing / app).

Docs / developer guides: docs.dolomite.io — contains guides about markets, borrow, supply, smart contract addresses and architecture. (Docs include dated pages — e.g., Market docs with Sep 1, 2025 metadata).

Code: GitHub organization dolomite-exchange (multiple repos including core contracts and margin modules).

Token & market data: CoinGecko, CoinMarketCap and aggregators list the DOLO token with price, marketcap and trading pairs.

(Examples of announcements and community writeups appear on Medium, Binance Research/News posts and crypto press; I draw on those as secondary sources below.)

3) Core product ideas and differentiators

These are the features Dolomite highlights and that appear throughout documentation and announcements:

a) Extremely broad asset support — “1,000+ assets”

Dolomite claims to support thousands (or more than 1,000) unique ERC-20 assets via a central pooling architecture and a market per token. The pitch is simple: most money markets list a few dozen tokens; Dolomite’s architecture aims to list many more so that otherwise idle tokens can be supplied/borrowed.

b) Dynamic Collateral & DeFi-native rights

Dolomite emphasizes letting collateral keep its on-chain utility (staking, governance, vesting rewards). The idea is users can borrow against tokens without needing to forfeit those other protocol rights, improving capital efficiency and composability. (Docs and explainer articles call this out repeatedly.)

c) Isolated loan positions & markets

Dolomite’s market model uses a per-token Market object (market IDs instead of token addresses) and offers isolates for loans—users choose which deposits are collateral for each borrow position. This reduces the protocol-wide contagion risk and gives users fine control.

d) Virtual Liquidity & Capital Efficiency

Dolomite advertises design choices (Virtual Liquidity, centralized pooling) meant to let users capture multiple income streams simultaneously — e.g., lending interest, staking/yield on collateral, and other rewards — which proponents argue increases real returns vs. traditional markets.

4) Architecture & smart contracts (how it’s built, high level)

Sources: Dolomite docs and GitHub.

Market per token: Each ERC-20 supported by Dolomite has a corresponding Market with its own risk params, price oracle and interest setter contract. Markets are internally referenced by numeric ID.

Core vs module repos: GitHub shows a separation of immutable core contracts and mutable modules — a common pattern to allow upgrades via module replacement while keeping core invariants. Smart contract addresses are published in the docs.

Oracles & interest setters: Every market specifies a price oracle and an interest rate setter contract; this is important for price feeds and for interest rate curves.

Front-end / App: The web app (launch app on site) interacts with wallets and the smart contracts to supply/borrow, open isolated positions, and manage collateral.

5) Token — DOLO (utility, uses, listings)

Dolomite has a governance / utility token commonly referenced as DOLO in aggregator listings (CoinGecko, CoinMarketCap). The token is used for governance, potentially for fee capture / staking / incentives, and for community rewards depending on the specific incentive programs announced. Check the published token docs or tokenomics page in the docs and announcements for exact allocations and vesting schedules.

(Note: token mechanics and listings can change fast — always cross-check the project’s tokenomics page or audited token contract for the canonical distribution details.)

6) How lending & borrowing works on Dolomite — user flows

Based on docs and guides:

1. Connect wallet: Use a supported EVM wallet (connect via web3).

2. Deposit / Supply: Move tokens into your Dolomite balance (supply) to start earning supply interest. The docs show a “Total Supplied / Total Borrowed” dashboard.

3. Designate collateral: When you borrow, you choose which assets to designate as collateral for that loan (isolated positions). This lets you avoid unintentionally using all deposits as collateral.

4. Borrow: Borrow assets against the collateral following the market’s LTV and risk parameters. Borrowing can enable leverage, hedging, or unlocking liquidity without selling.

5. Manage positions: Monitor health factors, repay loans, or add/remove collateral. Dolomite provides UI pages for borrow and markets in the docs.

7) Interest model, markets & risk parameters

Interest setters: Each market links an Interest Setter contract that defines how interest rates change with utilization. This allows per-market curves.

Price oracles: Markets rely on designated price oracles. Oracle integrity is critical because mispriced assets can cause incorrect liquidations or bad debt. Dolomite’s docs list oracle assignments per market.

Isolated vs pooled risk: By letting users isolate positions and choosing which deposits are collateral, Dolomite reduces cross-market contagion compared to strictly pooled systems. However, the central pooling architecture that allows many assets still requires careful risk param management.

8) Unique product features and composability examples

Looping strategies & Strategies Hub: Dolomite has announced a “Strategies Hub” for prebuilt strategies like looping assets for yield (borrow stablecoins, swap to more collateral, repeat) and delta-neutral strategies. These are intended for power users to automate yield strategies; Medium posts explain example strategies.

Keeping DeFi rights: Because of Dynamic Collateral, deposited tokens can still participate in governance/staking, enabling users to earn those external rewards while they’re securing loans. This is a major selling point.

9) Integrations, networks & ecosystem

Dolomite materials mention integrations with L2s and cross-ecosystem tokens — check the docs and announcements for current supported chains and cross-chain bridges. The docs and site are the canonical place for the current list of supported markets and chains.

10) Security, audits & transparency

Open source: Dolomite’s contracts and modules are available on GitHub; this transparency is a positive security signal.

Published smart contract addresses: Docs list contract addresses and repo links so third parties can review and auditors can reference them.

Audits: I recommend checking the docs and GitHub for explicit audit reports (audit firm, scope, date and issue tracker). I did not find a single comprehensive audit report text in the sources I pulled for this article; projects often publish audit reports separately (PDF) — check the Docs security or audits page and the GitHub repo for the latest audit artifacts. (Important: audit status can change; always verify before depositing large sums.)

11) Known limitations & risks (always read before depositing)

1. Oracle risk — price feed manipulation can cause mispriced liquidations. Dolomite’s market design uses oracles per market; their quality matters.

2. Smart contract risk — bugs in core or module contracts can be exploited. While open-source and modularity help audits, they do not remove risk.

3. Liquidity & market risk on thin assets — supporting 1,000+ tokens increases the chance some markets are illiquid or highly volatile; liquidity shortages can produce slippage and rapid depegs on small cap tokens.

4. Counterparty / protocol risk — even with isolated positions, systemic shocks (e.g., oracle outages, L1/L2 rollup failures) can affect operations.

5. Tokenomics / incentive changes — token incentive programs (airdrop, rewards) change user economics and can shift user behavior; always confirm current reward schedules on official docs or announcements.

12) Governance & community

Dolomite promotes community governance via its token (DOLO). For up-to-date proposals, governance forums or snapshot pages (if used) should be checked. Aggregator pages (CoinGecko, CoinMarketCap) and exchange announcements (e.g., Binance posts covering Dolomite writeups or token programs) provide secondary coverage of community activity.

13) Examples / walkthroughs (practical)

Simple supplier: Deposit an ERC-20 you own into Dolomite > the UI shows accrued supply interest in real time > you can withdraw anytime subject to market liquidity and protocol rules.

Borrow + keep staking rights: Use a staking token as collateral but retain staking/ governance via Dynamic Collateral -> borrow stablecoins to buy other assets or for liquidity needs while still earning the external staking rewards implied by the collateral. (See strategy posts.)

Looping example: Borrow USDC against GRAI collateral, swap USDC to more GRAI, deposit again — repeat to amplify yield (this is advanced and risky). Dolomite’s Strategies Hub documents examples.

14) Market presence, partnerships & listings

Dolomite’s token and platform have been covered by industry outlets and listed on aggregators and exchanges. Example: DOLO token pages on CoinGecko and some press pieces describing listings/airdrops (Binance writeups mentioned Dolomite in content posts). For trading availability and airdrops, check exchange announcements and official Dolomite channels.

15) Where to get official, up-to-date info (do these before you act)

Official website/app: dolomite.io (product & app).

Documentation & guides: docs.dolomite.io (markets, borrow guide, smart contract addresses).

Code & audit artifacts: GitHub dolomite-exchange org.

Token & market data: CoinGecko / CoinMarketCap entries for DOLO.

Announcements & blog: Dolomite Medium and exchange blog posts (examples: Medium strategies hub, Binance Square posts).

16) Final advice & best practices

Do your own research: read the docs, verify smart contract addresses, and confirm audits before depositing significant funds.

Start small: test the UX with small deposits and a basic borrow to understand liquidation mechanics and interest accrual.

Watch oracles & risk params: for thin markets, oracle latency or price updates can meaningfully change health factors.

Treat strategies as advanced: looping and delta-neutral strategies amplify return and risk. Use only if you understand liquidation and funding risks.

Appendix — Selected source index (quick links)

Dolomite official site / app.

Dolomite documentation (Markets, Borrow guide, Smart contract addresses).

GitHub: dolomite-exchange org and margin protocol repos.

Medium: Dolomite announcements & Strategies Hub.

CoinGecko / CoinMarketCap asset pages for DOLO.

Press / exchange editorial pieces about Dolomite (Binance posts).

@Dolomite
#Dolomite

$DOLO