Dolomite (DOLO): Where DeFi portfolios get smarter & more liquid
One of the big perks of web3 finance is its ability to give everyday users access to high-end financial concepts. Online lending platforms such as Dolomite let crypto owners connect directly with other borrowers and lenders. This financial protocol provides a flexible market for all sorts of crypto activities. By supporting a broad array of asset types, Dolomite hopes to empower users and further democratize financial transactions. The project supports over 1,000 different assets, so you can get borrowing and lending benefits with all sorts of cryptos.
Key Takeaways:
Dolomite is a borrowing and lending platform for cryptocurrency users.
Looking to trade Dolomite tokens? Bybit now offers the DOLO/USDT Spot trading pair for trading.
What is Dolomite?
Dolomite is a borrowing and lending platform for cryptocurrency users. Thanks to its support of a broad variety of assets, Dolomite is more flexible than many other web3 money markets.
History of Dolomite
The Dolomite project launched in 2019 and was created by Adam Knuckey and Corey Caplan. However, Dolomite's origins are much older. Back in 2015, Knuckey and Corey were crypto traders who were finding existing exchanges to be limiting. They believed that transfer wait times, a refusal to support any coins outside of BTC and a lack of support for mobile users were making it much harder to take advantage of market opportunities.
Therefore, Knuckey and Corey decided to join forces and work on creating the type of decentralized exchange that they’d want to use. Though their first DEX project never took off, they were able to attract attention from investors. A few years later, with $2.5 million in funding from Draper Goren Holm and other firms, Dolomite was created.
What does Dolomite aim to achieve?
Dolomite's overall goal is to make a more flexible, convenient lending platform. In order to do so, the system has had to tackle several problems. First of all, Dolomite tries to offer more asset support than other projects. Many money markets and DEXs only allow users to work with stablecoins or major coins such as BTC, but Dolomite wants to let users enjoy their benefits regardless of the types of coins they own. Currently, Dolomite supports over 1,000 assets, and plans to add more.
Another issue that Dolomite hopes to address is that of capital efficiency. Unlike other systems, Dolomite lets users reuse liquidity and earn yield from multiple sources and aims to provide additional mobile services. And unlike some exchanges that require users to log in to their computers to send funds, Dolomite endeavors to work seamlessly on mobile. Furthermore, it aspires to reduce other inconveniences, such as limits on the number of positions people can open at a time and how much users have to pay to transfer funds to their bank.
The final goal of Dolomite is to achieve all of this without sacrificing decentralization. The project's creators believe it’s important to maintain a fully decentralized, user-led environment, while providing even more services than centralized exchanges and lending protocols.
How does Dolomite work?
Providing users with asset support, mobile apps and impressive capital efficiency requires a complex architecture. Behind the scenes of the software that creates Dolomite's interface is a two-part modular architecture. The core layer of Dolomite sets forth configuration parameters that handle things such as protocol security and routing smart contracts. Meanwhile, the modular layer handles most of the day-to-day tasks for the protocol.
In order to achieve various tasks, such as depositing funds, liquidating accounts and trading crypto, Dolomite's smart contracts in the modular layer create sequences of actions. These actions then turn into a bundled operation that’s sent to the core layer. The modular layer can easily change to adjust to the needs of various users. Dolomite regularly updates it in order to add new assets and provide new services to users.
Features of Dolomite
The Dolomite platform combines many helpful features from other money markets into a single system so that users can enjoy its services.
Earn
Dolomite allows users to turn their existing crypto assets into passive income. There are many features to choose from, including lending, liquidity provision and leveraged trading. Dolomite provides opportunities to access multiple earning opportunities at once so you can maximize capital efficiency for your coins.
Borrow
If you need cryptocurrency funds for another venture, Dolomite's borrowing system can help. This protocol lets you put up current crypto assets for collateral, and in return you receive other assets to use as you wish. Unlike with some other systems, borrowing from Dolomite allows multiple, isolated borrowing positions so you can distribute risk more evenly.
veDOLO
veDOLO is a vote-escrowed DOLO token. Users receive it by staking their DOLO tokens, and can then use veDOLO to participate in community governance. If you want to unlock your veDOLO early, you can pay a fee to regain your DOLO tokens.
oDOLO
The oDOLO token is distributed to users who provide liquidity for the system. oDOLO rewards are given to liquidity providers on a weekly basis, and users can then convert the coins into discounted veDOLO. This gives liquidity providers a stake in community governance and allows them to cash out their rewards for a small fee.
Dolomite road map
Since 2019, Dolomite has gradually been improving its system. Following a launch on Ethereum, the team migrated Dolomite to Arbitrum in 2022. Other past achievements include launching borrowing and lending functions, creating an XP system for community engagement and designing custom investment strategies for users.
Right now, Dolomite is focused primarily on launching its DOLO governance token. It then plans to pivot to an unspecified set of improvements. Dolomite's road map is community-driven, so it doesn't consist of a clear set of objectives. Instead, the platform’s creators keep track of what features people request and implement them when possible. Besides adding more supported crypto assets to the system as necessary, Dolomite's road map for the future includes adding additional trading features.
DOLO airdrop
In order to launch the DOLO token, Dolomite set up an airdrop to distribute 20% of all DOLO tokens. Distribution is based on contributions to the community and/or engagement with the platform as of Jan 6, 2025. Users who borrow and lend on Dolomite or stake money in liquidity pools earn XP that they can then redeem for DOLO on the Dolomite website.
DOLO tokenomics
DOLO is an ERC-20 token used for governance within the Dolomite system. It's also a utility token that can power lending pools, enable exchange liquidity and perform other maintenance tasks throughout the platform. It has a fixed supply of 1 billion tokens. Four years after release, Dolomite will enact a 3% annual inflation rate for DOLO. Tokens are being distributed according to the following plan:
Community: 50%
Core team: 20%
Foundation: 10%
Investors: 16%
Service providers: 3%
Advisors: 1%
DOLO price prediction
Since its launch, DOLO prices have dropped from around $0.07 to $0.03. Therefore, some investors are cautious, and CoinMarketCap predicts a further decline in pricing. However, others believe that DOLO is undervalued, and will eventually increase in price. Pricing data from CoinCodex suggests that DOLO’s low price will continue for several months, but will eventually recover and increase by over 100% in the next year.
Where to buy DOLO
Looking to trade Dolomite tokens? Bybit now offers the DOLO/USDT Spot trading pair for trading. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the DOLO/USDT Spot trading page.
Is DOLO a good investment?
At this moment, DOLO is a risky yet promising investment. The Dolomite platform has the potential to attract traders, and if it becomes popular, it could lead to a better price for DOLO. Furthermore, the token’s low price at this time means that investors can buy it at a discount before its price recovers. Small fluctuations in price could result in big profits.
It’s recommended that you only invest in DOLO or any other cryptocurrency if you have funds you can afford to lose. Avoid overextending yourself for any token that is still fairly new and has a lot of volatility, and always do your own research.
Closing thoughts
Dolomite is an exciting addition to the crypto lending industry. Its ability to support many assets while still providing fast and affordable service may prove to be popular. In the long run, this could also translate to some success for Dolomite's crypto, DOLO. Though it's still struggling to gain a foothold in the crypto market, DOLO is a currency worth watching.
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