@Dolomite (DOLO) is a next-generation decentralized finance protocol that merges decentralized trading platforms with a money market, providing users the ability to participate in loans that exceed their collateral value and engage in margin trading, instant trading, and more. Its unique virtual liquidity system enhances capital efficiency, enabling users to increase the yield on their assets by earning lending returns while simultaneously participating in trading activities.
Dolomite (DOLO): The new standard for decentralized finance focused on capital efficiency
Dolomite (DOLO) developer
@Dolomite was developed by Leavitt Innovations, led by a distinguished team of key figures including co-founders Corey Kaplan and Adam Knacki. The team began working on decentralized exchange technology as early as 2018, initially relying on the Loopring protocol. After gaining experience and understanding the needs of the cryptocurrency world, they launched the new version of Dolomite in October 2022, designed to support a wide range of assets and complex decentralized finance tools.
Venture capital supporters of the Dolomite (DOLO) protocol
Dolomite has received investments from Draper Goren Holm, NGC Ventures, Coinbase Ventures, WWVentures, 6th Man Ventures, RR2 Capital, Token Metrics Ventures, Ventures, Orchard Street Capital, and Guanxi DAO. Some angel investors like Matthew Feinstein, Kyle Rojas, and David Bliznak have also contributed.
Working mechanism of Dolomite (DOLO)
1. Integration of a decentralized trading platform and lending protocol
Dolomite features a combination of decentralized trading platform functionalities and lending platforms. Users can engage in instant trading, margin trading, and lending with collateral exceeding the loan value, all within a single interface. This integration allows for seamless transitions between trading and lending activities, enhancing user experience and capital efficiency.
2. Extensive support for various currencies
One of the remarkable features of the Dolomite protocol is its extensive support for currencies. The platform can list thousands of assets, including unconventional currencies like retained liquidity pool tokens and yield-bearing assets. This broad support provides users with diverse options for portfolio management and strategy implementation.
3. Capital efficiency through virtual liquidity
@Dolomite offers a virtual liquidity system that allows users to increase the yield on their assets. For example, deposited assets can earn lending returns while simultaneously participating in trading activities. This dual functionality ensures enhanced returns across multiple avenues.
4. Modifiable infrastructure
The platform's architecture consists of two main layers: a core layer that cannot be altered and a modifiable layer. This design allows for adaptability, enabling Dolomite to integrate new features and respond to evolving decentralized finance trends without compromising its foundational stability.
5. Currency economics: $DOLO and Evdolo and Doolo
The Dolomite system is based on three core tokens: DOLO, VedoLO, and oDolo.
● DOLO: The standard ERC-20 token used as the primary currency within the Dolomite ecosystem.
● VedoLO: Voting-backed tokens that grant their holders governance rights and a share of the protocol fees. Since VedoLo is used as non-fungible tokens (NFTs), they can be transferred, combined, or split, providing flexibility to users.
● oDolo: The $DOLO token is designed to reward liquidity providers and can be combined with DOLO to obtain VedoLO at a discounted rate. This mechanism incentivizes long-term participation and supports the protocol's owned liquidity.
This tri-token system enhances the self-sustaining cycle and aligns incentives among participants, promoting platform growth.
6. Integration with the Berachain system
Dolomite has strategically integrated into the Berachain ecosystem, leveraging its unique Proof of Liquidity (PoL) model. This integration allows users to utilize their assets more effectively, such as borrowing against governance tokens without selling them. Dolomite's presence also enhances Berachain's liquidity and user retention, reinforcing its role as a core financial tool within the network.
