I have been looking for DeFi protocols that can ensure capital safety while improving capital efficiency. Recently, the heat brought by Dolomite's multi-chain expansion and exchange listings has led me to reevaluate its long-term logic. With Coinbase launching DOLO spot trading on September 11, 2025, Dolomite officially enters the compliant main stage, which not only increases capital inflows but also brings a new catalyst for its valuation logic.
1. Core data performance
According to DefiLlama data, Dolomite's current TVL is approximately $332 million, of which Berachain accounts for $85.35M, Arbitrum $80.42M, and Ethereum $37.82M. The lending scale is approximately $117 million. On the revenue side, over the past 30 days, the protocol has accumulated fees of $1.02 million and a net income of $216,000, with an annualized conversion of about $2.64M. These figures clearly reflect that Dolomite is no longer a 'small and beautiful' protocol, but is gradually stepping into the array of mid-sized DeFi protocols.
II. Product mechanism: Dynamic collateral + Isolated positions
Dolomite's differentiated advantage lies in dynamic collateral and isolated position accounts. After depositing assets, users can not only use them as collateral but also continue to enjoy staking, voting, and earning rights. This means the same asset can 'work simultaneously', significantly improving capital utilization. The isolated position mechanism ensures that risks from different borrowing positions do not interfere with each other, avoiding cascading liquidations.
III. Ecological integration: Dual-driven by PoL and GMX
On Berachain, Dolomite is deeply bound with Proof of Liquidity (PoL): users can deposit PoL assets into the reward pool while continuing to use PoL receipts as collateral, forming a 5–7 times leverage cycle. In Arbitrum, Dolomite connects with GMX, where GLP deposits can not only serve as collateral but also continue to receive ETH dividends, esGMX, Multiplier Points, and other earnings, supporting one-click migration of all rights, enhancing reusability and user stickiness.
IV. Risk control and compliance
Dolomite's E-Mode and Segregated Risk risk control system allows for higher LTV on correlated assets, increasing leverage space while reducing tail risk. On the coding side, the protocol has been audited by multiple security institutions including Cyfrin, OpenZeppelin, SECBIT Labs, Guardian Audits, etc., achieving production-level coverage and robust engineering that ranks at an upper level within the same track.
V. Tokenomics and governance
The total supply of DOLO is 1 billion tokens, with an annual inflation rate of 3% starting from the 4th year, adjustable by the DAO. The governance token veDOLO adopts an NFT locking model, with a maximum duration of 2 years, granting voting rights and potential profit distribution. Users can also exchange veDOLO at a discount through oDOLO, creating continuous buying pressure on DOLO and enhancing the protocol's own liquidity (POL). This three-layer structure makes DOLO not only an incentive token but also a governance and capital efficiency tool.
VI. The secondary effects of the exchange listing
The direct benefit brought by the listing of DOLO on Coinbase is the improvement of trading depth and liquidity. But what is more noteworthy is:
1. Compliance funds entering the market — more institutional investors can directly allocate.
2. Improved governance efficiency — as the number of veDOLO locked users increases, DAO decisions will be more representative.
3. Income tied to valuation — the increase in TVL and Fees will ultimately reflect the governance value of DOLO in market pricing.
VII. My observation checklist
Next, I will focus on the following catalytic factors:
• Whether Berachain PoL expansion brings new collateral depth;
• The launch of further composite strategies with Arbitrum, GMX, Pendle, etc.;
• Whether the DAO will activate the dividend switch for veDOLO to enhance token capture value;
• The continuous diffusion of new listings on CEX, as well as the interconnected growth of TVL/Revenue.
Overall, Dolomite has evolved from a simple money market into a 'multi-asset capital efficiency platform', with its valuation logic gradually shifting towards fee income quality + governance depth + compliance accessibility. For me, DOLO is no longer just a 'newly listed small coin', but a DeFi infrastructure worth long-term tracking.
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