Dolomite: Redefining "Hold: Lend - Borrow" in the DeFi Era

In the early stages, DeFi revolved around a fairly simple goal: to open up a decentralized financial market where anyone could borrow - lend - trade without needing an intermediary. However, the reality shows that most collateral assets in lending protocols often become "inert" (inert). Users are forced to choose between liquidity and utility: either borrow - lend, or hold to participate in governance, staking, earning rewards... @Dolomite_io appears with a distinct philosophy: each token in DeFi is not just a unit of value, but must be a multifunctional asset, possessing liquidity while holding its original utility. With that vision, #Dolomite aims to become a center for liquidity and decentralized capital management, supporting over 1,000 assets – from stablecoins, governance tokens, LP tokens, to reward tokens, yield-bearing tokens, and even experimental tokens. Strategic vision Dolomite exists to address two major issues of DeFi today: Collateral assets lose utility: When used as collateral, users often lose voting rights, staking rights, and rewards rights. Dolomite preserves these rights through a Dynamic Collateral mechanism. Liquidity gets stuck in thousands of small tokens: The explosion of ERC-20 and DeFi tokens has created a "sea" of assets with dispersed value. Most tokens cannot participate in major protocols like Aave, Compound, causing billions of USD in capital to be locked up. Dolomite opens the door for this asset group, turning "sleeping" liquidity into circulating capital within the ecosystem. In summary, Dolomite not only serves retail users but also paves the way for DAOs, LPs, strategic developers, and even treasury management organizations (treasury) to access capital more efficiently. Core feature system Support for over 1,000 assets including stablecoins, governance tokens, LP tokens, reward tokens… Allows staking of even less liquid or "niche" tokens. Dynamic Collateral – Maintain utility Assets under stake still retain the right to receive yield, staking, rewards, and voting rights. Transform each token into a "living asset", eliminating dead capital. Safe & modular architecture Core layer: immutable, ensuring reliability. Module layer: upgradable, adding strategies, new integrations without affecting the core layer. Audited by reputable entities ( Zeppelin Solutions, SECBIT Labs, Cyfrin… ). Multi-chain deployment, Layer-2 Operates on Arbitrum, Polygon zkEVM, Mantle, X Layer… Faster transactions, lower fees, convenient for multi-chain users. Margin, Spot, E-Mode & Risk segregation Supports margin/spot with various asset types. E-Mode: optimizes LTV when the borrowed asset and collateral asset are highly correlated. Sub-account: isolates risk, limits contagion effects when a position encounters issues. Strategies Hub – Strategy center Provides "strategy cards" ( strategy cards ) to help users execute complex strategies like loop farming, delta-neutral, pair trading… in just a few simple steps. Three-layer tokenomics DOLO: native token. veDOLO: governance token ( vote-escrowed ), conferring voting rights and incentives. oDOLO: reward token for LP, convertible to veDOLO at a discount. Transparency of risk Parameters such as marginRatio, liquidationSpread, earningsRate… are publicly disclosed on-chain. Governance has the right to adjust but is limited within the immutable framework, with a delay to protect users. Current attraction and data TVL has exceeded 800 million USD, bringing Dolomite into the group of DeFi with significant liquidity. Participate in incentive programs like ArbitrumDAO DRIP, which helps attract more users and liquidity. The DOLO token will launch in April 2025 with a 20% airdrop for the community and contributors. Governance with veDOLO will officially activate from August 2025. Deepen the technical mechanism E-Mode & correlation risk classification: Allows borrowing at a safer ratio if the collateral and borrowed assets have a high correlation. Virtual Liquidity: Increases capital efficiency, reduces slippage for small markets. Smart Collateral / Smart Debt: Turns debt assets and collateral assets into "active" – for example, collateralized LP tokens still receive transaction fees. Application case Individual investors: Stake governance tokens to borrow stablecoins, while retaining voting rights. Traders: Leverage trading, pair trading, hedging with various asset types, not limited to blue-chip only. DAO / Treasury: Stake treasury tokens to borrow operational capital, without the need to sell core assets. Builders: Utilize the module & Strategies Hub to integrate new strategies, building derivative products on Dolomite. Risks and limits Oracle Risk: The price of small tokens is easy to manipulate or update slowly. Smart Contract Risk: Despite being audited, errors can still occur. Liquidation & Volatility: Borrowing too close to the threshold can lead to liquidation during strong market fluctuations. Experience Barrier: Complex strategies may confuse newcomers. Legal Risk: DeFi is increasingly under scrutiny; airdrops, token rewards, and cross-chain activities may be subject to review. Position in the DeFi ecosystem Compared to Aave, Compound, MakerDAO – the protocols focused on stability and blue-chip assets – Dolomite chooses the "long-tail support" path for long-tail assets. This creates a clear distinction: Aave/Compound: strong in liquidity, few assets, focused on stability. Dolomite: diverse assets, safeguarding user rights, flexible strategies. That makes Dolomite a "liquidity operating system" rather than just a lending market. Future & prospects Stronger multi-chain expansion: Aiming to become a cross-chain liquidity bridge. Adding more strategies & integrations: Collaborating with yield aggregators, insurance, vaults. Better risk management tools: Intuitive dashboard, real-time liquidation alerts. Optimizing reward models: Reducing dependence on oDOLO / airdrop, moving towards sustainable cash flow. Ability to attract DAOs & organizations: Becoming the standard solution for decentralized treasury governance. Conclusion Dolomite is redefining how we understand "lending - borrowing - holding" in DeFi. The biggest strength is: Diversified assets (1.000+ token).Preserved utility DeFi-native (governance, staking, yield).Safe, modular architecture.Targeting diverse users: trader, DAO, treasury, builder. If the risks related to oracle, liquidity, and user experience can be addressed, Dolomite could entirely become the core infrastructure platform for the new generation of DeFi – where every token is a living asset, always generating profit and always able to move within the global liquidity flow.