Every DeFi protocol needs fuel. Some burn too bright with crazy token rewards that collapse overnight. Others fade when the hype dries up. Dolomite took a different route. Instead of chasing short-term fireworks, it built a token economy designed to last — one that powers itself in an endless loop of growth, demand, and loyalty.
At the heart of this design are three tokens — DOLO, veDOLO, and oDOLO. Think of them like gears in a machine: each plays its role, but together, they keep Dolomite alive, sustainable, and constantly evolving.
Meet the Trio
DOLO — The Starting Point
DOLO is the entry token, the first step into Dolomite’s ecosystem. It’s the same across Ethereum, Arbitrum, and Berachain, thanks to Chainlink’s CCIP. No messy wrapped versions. No confusion. Just one clean identity everywhere.
veDOLO — Proof You’re In It for the Long Haul
veDOLO is where loyalty lives. To get it, you lock your DOLO for a set time. In return:
You earn real revenue from Dolomite (like lending spreads and liquidation fees).
You get a voice in governance, shaping the protocol’s future.
But here’s the twist — if you unlock early, you pay a penalty. And those penalties? They don’t vanish. They cycle right back into the ecosystem, strengthening it even more. veDOLO isn’t just governance. It’s a commitment contract that says: “I believe in Dolomite’s future.”
oDOLO — The Spark for Liquidity
Liquidity providers keep Dolomite alive, and oDOLO is their reward. But unlike typical “farm-and-dump” tokens, oDOLO can’t just be dumped for fast profits.
To unlock its real power, LPs must pair it with DOLO (bought from the open market) and convert it into veDOLO. That simple step turns liquidity rewards into long-term commitment — and keeps demand for DOLO strong.
The Power Cycle in Motion
Here’s how the loop works:
LPs provide liquidity → earn oDOLO.
To get full benefits, they must convert oDOLO into veDOLO.
That conversion requires buying DOLO.
Buying DOLO drives demand and shrinks supply.
veDOLO locks in loyalty and spreads governance power.
Round and round it goes, a flywheel that keeps Dolomite stronger with every spin.
And Dolomite adds even more fuel — the longer you lock your veDOLO, the bigger the bonus. Two years? You can unlock up to 50% extra. Unlock early? The penalty strengthens the system instead of weakening it.
Why This Stands Out
DeFi is full of projects throwing out unsustainable rewards. The second those emissions stop, liquidity dries up and tokens tank. Dolomite said no thanks to that model.
Instead, it built a cycle where:
oDOLO makes liquidity sticky.
veDOLO locks in loyalty.
DOLO stays in constant demand.
It’s not hype-driven. It’s incentive-driven. And that’s why it lasts.
The Bigger Picture
Dolomite’s token system isn’t just clever tokenomics. It’s a living ecosystem with a survival instinct.
Liquidity providers become token holders.
Token holders become governors.
Governance ensures growth and resilience.
It’s a circle where speculation transforms into commitment.
In a space where most projects flame out as fast as they rise, Dolomite built something different: a system that grows stronger with every turn of its cycle.
This isn’t just token design. It’s Dolomite’s heartbeat.
Dolomite didn’t just create a token. It created a rhythm — a cycle of loyalty, growth, and resilience that never stops beating.