Part 02 – Features, Use Cases, and Everyday Scenarios
Lending That Goes Beyond the Basics
The bread and butter of Dolomite is lending. Users deposit tokens into the platform, and those tokens are available for others to borrow. Lenders earn interest that adjusts with supply and demand. So far, that’s standard DeFi stuff.
But the magic is in the breadth of assets. Imagine you’ve been holding a token from a small project you believe in. On most platforms, that token does nothing unless you sell it. On Dolomite, it can earn yield. Suddenly, you’re not just a holder; you’re a lender earning interest on an asset that used to be useless.
Borrowing with Isolation and Choice
Borrowing on Dolomite is also different. Instead of a single pool where all your assets are at risk, Dolomite uses isolated positions. Each loan is separate, meaning if one position goes bad, it doesn’t drag down your entire account.
Even better, you can choose which assets to use as collateral. You’re not forced to pledge your entire wallet. For example, you could collateralize one loan with LINK while keeping your ETH untouched, then set up a completely separate loan using stablecoins. This flexibility gives users a level of control rarely seen in DeFi.
Trading and Margin Without Friction
Most DeFi platforms force you to hop between apps. You lend on one, borrow on another, and trade on a third. Each hop costs gas, introduces risk, and wastes time. Dolomite cuts out the middleman by including a decentralized exchange and margin trading system directly inside its environment.
So if you want to borrow and immediately trade, you can do it in one seamless action. For active traders, this integration is a massive win.
The Strategies Hub – Complex Made Simple
Not everyone is a DeFi power user. Strategies like looping or delta-neutral farming can be profitable, but they’re also intimidating. Dolomite’s Strategies Hub is a direct answer to this problem.
Think of it as a menu of ready-made strategies. Want to loop ETH so you can increase exposure? There’s a template. Want to hedge your risks while farming? Another template. Instead of dozens of manual steps, you just select, confirm, and the protocol executes everything for you.
This isn’t just convenience; it’s empowerment. It lowers the barrier for newcomers while still offering depth for experts.
A Three-Token Economy
Dolomite also has a thoughtful incentive system built on three tokens:
DOLO – the core utility token.
veDOLO – created by locking DOLO, giving you governance rights and revenue share.
oDOLO – rewards for liquidity providers, which can be paired with DOLO to generate veDOLO.
This structure encourages long-term commitment while keeping the ecosystem liquid and fair. It also ties governance directly to those who are most invested in the protocol’s success.
Everyday Use Cases
Unlocking liquidity without selling: An investor holding LINK can borrow USDC against it. They gain liquidity while keeping exposure to LINK’s potential growth.
Productive niche tokens: Someone holding a small project’s governance token can now earn interest and use it as collateral instead of letting it sit idle.
Leveraged trading: Traders can borrow and swap within Dolomite, taking margin positions without hopping between apps.
Passive strategies: A newcomer can select a pre-built strategy from the Strategies Hub and start earning yield without needing technical knowledge.
Each use case highlights the same principle: assets in Dolomite don’t just sit around. They’re constantly working, creating new layers of value.
