Dolomite is a modular DeFi protocol that integrates lending, trading, and asset management, designed specifically for the most active on-chain users. This project breaks the limitations of traditional lending products where "once borrowed, you cannot move it" through innovative "smart debt mechanisms" and "virtual liquidity systems," achieving efficient utilization and flexible management of funds. As of April 2025, over $820 million in assets have been supplied on the platform, with more than $110 million borrowed, and the cumulative trading volume has surpassed $930 million.
Project Highlights:
During the loan period, rewards can be received: by integrating the "rights not to be lost" lending mechanism, users are allowed to continue enjoying the benefits and governance capabilities brought by collateralized assets while lending stablecoins or other assets. For example, after users collateralize plvGLP, they can still continuously receive Plutus's PLS rewards on the platform without needing to redeem or transfer assets.
Sub-account isolation mechanism: Introduces an 'isolated sub-account' structure, providing users with multi-account operational capabilities similar to institutional levels. Each sub-account can independently set collateral assets, borrowing currencies, and risk parameters, significantly enhancing strategic flexibility and risk control.
Virtual liquidity system: Users can complete a series of operations such as lending, transferring, and trading within the system without the need for real asset circulation, thus significantly reducing costs and alleviating withdrawal pressure during peak periods. This design also allows users to earn lending interest while earning swap fees, achieving multiple returns on a single liquidity.
Dolomite was originally established on Arbitrum and later expanded to multiple blockchains including Berachain, Mantle, Polygon zkEVM, and X Layer. Currently, of its total locked value (TVL) of approximately $800 million, $740 million is concentrated in Berachain, making it the third-ranked protocol in TVL within this ecosystem, second only to Infrared Finance and Kodak.
2. Token economic model and DOLO token
DOLO is Dolomite's native token, adopting the ERC-20 standard, used for governance, staking, and collateral within the Dolomite system. The design of the DOLO token economic model aims to incentivize long-term participation and ecosystem development.
Token basic data:
Indicator: Value
Current price: $0.18 (approximately ¥1.29)
24-hour trading volume: ¥164 million
Maximum issuance: 1 billion
Circulation: 361 million (36.17% circulation rate)
24-hour turnover rate: 32.59%
Historical highest price: ¥2.62
Historical lowest price: ¥0.21
Token usage:
Governance voting: Holders can participate in protocol upgrade decisions, such as adjusting interest rate models and adding support for new assets.
Staking rewards: Provide economic incentives for infrastructure providers to ensure the security and stability of the network.
Network fees: May be used in the future to pay for certain premium services, such as priority transaction processing, etc.
Ecosystem incentives: Encourage developers to build applications based on Dolomite, such as strategy protocols, DAO tools, etc.
Token distribution:
Community airdrop: 30%
Team and advisors: 20% (4-year linear unlocking)
Ecosystem fund: 25% (for developer incentives and community building)
Investors: 15% (2-year linear unlocking)
Recently, the performance of the DOLO token has been impressive, from a low point of about June 2025
0.03
Soaring to the highest
0.03 surged to 0.3, with an increase of nearly 10 times in two months, becoming one of the most remarkable assets in the Berachain ecosystem.
3. Technical architecture and innovation
Dolomite's technical architecture is designed around two core goals: 'maximizing capital efficiency' and 'optimizing user experience,' and includes multiple innovative components:
Cross-chain liquidity layer: Achieve seamless asset transfer across different chains through miAssets (cross-chain liquidity tokens), supporting over 32 types of collateral assets.
EOL (ecosystem-owned liquidity): Integrate scattered liquidity into innovative solutions from a unified source, significantly improving capital utilization.
Matrix unified liquidity pool: Enables funds to be reused across chains and continue to earn interest, without users needing to frequently transfer assets between different protocols.
Smart debt mechanism: Allows users to flexibly manage strategies between sub-accounts, achieving optimal allocation of debt and risk isolation.
Security mechanism:
All transactions are executed through smart contracts, ensuring transparency and immutability
Adopt multi-signature and cold storage to protect user assets
Regular third-party security audits
Dolomite has integrated with multiple DeFi platforms such as Harvest Finance, FalconX, Chainlink, and The Graph, forming a strong ecological network.
4. Market performance and investment analysis
Recent market data:
24-hour increase: -6.58%
24-hour volatility: +10.06%
Circulating market value: ¥503 million
Global market capitalization ranking: 736th
Investment value analysis:
Modular DeFi pioneer: As an early adopter of modular architecture in lending protocols, Dolomite has a first-mover advantage in capital efficiency and user experience.
Multi-chain expansion capability: Has supported multiple blockchains such as Arbitrum and Berachain, with plans to expand to more networks in the future.
Institutional recognition: Received top capital investments from Coinbase Ventures, NGC Ventures, etc., completed a $2.5 million seed round in May 2023, and in March 2024 gained support from crypto OGs like Optic Capital and Polygon co-founder Sandeep, completing a $900,000 strategic round.
High growth potential: Ranked third in TVL within the Berachain ecosystem, with the expansion of this ecosystem, Dolomite is expected to attract more users and asset inflows.
Risk factors:
Intensified market competition (such as established protocols like Aave, Compound, etc.)
Smart contract security risks
Regulatory uncertainty
5. Future plans and development roadmap
The Dolomite team is advancing multiple key developments to consolidate its leading position in the modular DeFi space:
DAO transformation: Transitioning to a DAO model, increasing community governance and operational transparency, allowing token holders to truly grasp the direction of protocol development.
Multi-chain deep integration: Plans to support more emerging blockchains, such as Avalanche, Solana, etc., to expand application scenarios.
Enterprise-level solutions: Provide customized services for institutional users, such as compliant on-chain asset management tools.
Token utility expansion: Develop more use cases for DOLO, such as payment protocol fees, participating in liquidity mining, etc.
As DeFi gradually moves towards modularization and high composability, Dolomite is not only a lending protocol but also a foundational asset management operating system that is expected to become the preferred infrastructure for on-chain institutions such as DAOs, quantitative funds, and strategy protocols in the future.