Most Bitcoin holders today simply store their BTC, waiting for long-term appreciation. But Dolomite provides a powerful way to unlock the latent value of Bitcoin without selling or leaving the ecosystem. By enabling BTC to serve as collateral, Dolomite transforms Bitcoin from a passive asset into an active, yield-generating instrument.
Using BTC as Collateral Without Selling
Dolomite allows Bitcoin holders to use their BTC as collateral within a decentralized lending and borrowing framework. Wrapped Bitcoin (WBTC) and similar tokenized representations of BTC can be locked into Dolomite’s smart contracts, giving holders access to liquidity while maintaining full ownership. The collateralized BTC remains secured by smart contracts, ensuring trustless custody without reliance on centralized intermediaries.
Borrowing Stablecoins Against Bitcoin
Once BTC is collateralized, holders can borrow stablecoins such as USDC or DAI. This gives them immediate liquidity for expenses, investments, or portfolio diversification—all without selling their BTC, triggering taxable events, or losing exposure to future price appreciation. Loans are structured to be overcollateralized, backed by clear risk parameters and real-time margin management to minimize liquidation risks.
Putting Bitcoin Capital to Work
Dolomite ensures BTC does not sit idle in wallets. Instead, it enables holders to:
Earn interest on lent Bitcoin assets.
Access credit lines for trading, investing, or hedging.
Leverage borrow power for margin strategies.
Retain governance rights and staking rewards through its Dynamic Collateral system, even while BTC is locked.
Staying Within the Bitcoin Ecosystem
Importantly, Dolomite supports wrapped and derivative versions of Bitcoin, seamlessly bridging it to Ethereum Layer 2 and other networks such as Arbitrum, Berachain, and Polygon zkEVM. This ensures holders remain tied to Bitcoin’s value and security while taking advantage of modern DeFi liquidity and yield opportunities—without selling their BTC or compromising their exposure.
Conclusion
Dolomite empowers Bitcoin holders to unlock liquidity, earn yield, and participate in DeFi markets—all while preserving ownership and remaining in the Bitcoin ecosystem. With collateralized BTC, stablecoin borrowing, and capital-efficient tools, Dolomite transforms Bitcoin into a productive asset instead of a dormant one.
