Parking stables while you wait for an entry? Keep them earning and stay ready to rotate when the setup shows up.
And you can claim your Merkl rewards right inside the Dolomite app. 🏔️
Dolomite
Money market protocol offering isolated borrowing against hundreds of collateral assets
3.9/ 5
Our score
Good
Lending model
Pooled
Chains
EthereumArbitrumOther
Main collateral assets
ETHWBTCUSDCBTCcx+1
Audited
Yes
Governance token
DOLO
Flash loans
Yes
What is Dolomite?
Dolomite is a decentralized money market and margin protocol that pairs lending liquidity with decentralized exchange mechanics. Operating across networks like Ethereum, Arbitrum, and Berachain, it allows users to supply collateral, borrow funds, and manage leverage while retaining native token rewards and rights.
Leadership and backing
Dolomite was founded in 2022, with development handled by Leavitt Innovations alongside the Dolomite Foundation and DAO governance. The project raised a $2.5 million seed round in May 2023, led by Draper Goren Holm and NGC Ventures, with participation from Coinbase Ventures, WWVentures, and 6th Man Ventures. Strategic partnerships also include integrations with Chainlink CCIP for cross-chain connectivity.
Lending mechanics and asset coverage
The platform separates each borrow position into an isolated risk container. Users can deploy collateral across more than 100 supported assets, including yield-bearing tokens and institutional Bitcoin via ConcreteXYZ's BTCcx custody setup with BitGo. Built-in tools like Zap allow borrowers to swap, loop, hedge, or repay balances within open positions using decentralized exchange liquidity in single transactions. The protocol's token model centers on DOLO, alongside veDOLO for governance weight and borrow fee rebates, and oDOLO for liquidity incentives.
Fees and collateral terms
Borrowing rates operate on dynamic utilization models, adjusting automatically as pool reserves shift. Liquidations on defaulted positions incur a 5.00% penalty fee. For active borrowers, veDOLO holders can earn weekly rebates covering up to 10% of their borrow interest paid on supported chains like Arbitrum and Berachain.
Track record and protocol risks
Total value locked stood at approximately $309M in October 2026, alongside more than $410M in active borrowing volume. The protocol's smart contracts have undergone audits by OpenZeppelin, SECBIT Labs, Bramah Systems, Cyfrin, Zokyo, and Guardian, paired with an open bug bounty program based on the OWASP framework. Key risks center on oracle dependencies and collateral liquidity. In April 2026, market observers flagged systemic solvency risks when a $484M deposit of illiquid WLFI collateral was posted to borrow USDC, creating default concerns if liquidations crashed market pricing. Binance delisted the DOLO/USDC spot pair in September 2026, reducing centralized trading liquidity.
Founders
Corey CaplanCo-founder
Software engineer and co-founder of Leavitt Innovations.
Adam KnuckeyCo-founder
Software developer and co-founder of Leavitt Innovations.
Best for:Yield farmers looping collateralDeFi traders needing isolated marginBorrowers using exotic collateral
Pros and cons
Pros
- Isolated risk architecture keeps individual borrow positions protected from other collateral changes
- Independent security audits completed by six firms, including OpenZeppelin and Cyfrin
- Supports over 100 collateral types, including yield-bearing tokens and institutional BTC
- Built-in DEX routing allows looping, swapping, and repayment in single transactions
Cons
- High exposure to low-liquidity collateral assets has created systemic solvency concerns in past markets
- Borrowing rates are variable and spike when pool utilization tightens
- Centralized exchange liquidity for the DOLO token dropped following pairs delisting on Binance
Our review
3.9/5
Good
Dolomite delivers deep collateral flexibility with isolated margin accounts across multiple chains, but large low-liquidity collateral listings create systemic bad debt risks during sharp market liquidations.
Dolomite operates as a decentralized money market and margin platform built around isolated risk architecture. Founded in 2022 by Corey Caplan and Adam Knuckey, the protocol separates user debt across independent accounts. This prevents liquidations in one position from draining another. It supports over 100 collateral assets across chains including Arbitrum, Ethereum, Berachain, Mantle, X Layer, and Polygon zkEVM, maintaining $308.56M in total value locked as of October 2026.
Deposited tokens retain their native staking rewards, governance voting rights, and underlying yield. Its built-in Zap router coordinates decentralized exchange aggregation directly inside open margin positions. Through this feature, users can loop collateral or repay borrows in single transactions. Variable interest rates adjust with utilization, while liquidations carry a 5.00% penalty. veDOLO holders can claim borrow-fee rebates of up to 10% on Arbitrum and Berachain.
Dolomite accepts long-tail tokens. In April 2026, an incident showed this vulnerability when a user deposited $484 million in low-liquidity WLFI tokens to borrow USDC, creating a systemic insolvency risk if liquidators had been forced to sell the illiquid collateral on open markets. Binance delisted the DOLO/USDC pair in September 2026.
Six security firms, including OpenZeppelin, Cyfrin, SECBIT Labs, Bramah Systems, Zokyo, and Guardian, have audited the protocol code alongside an OWASP-aligned bug bounty. Dolomite suits experienced onchain traders and yield farmers seeking isolated leverage or borrowing against niche tokens without giving up asset staking yield.
Specs
| KYC required ⓘ | No · unverified |
|---|---|
| Lending model | Pooled |
| Chains | Ethereum, Arbitrum, Other |
| Main collateral assets | ETH, WBTC, USDC, BTCcx, WLFI · unverified |
| Flash loans | Yes · unverified |
| Audited | Yes |
| Bug bounty | Yes |
| Governance token | DOLO |
| Isolated markets | Yes · unverified |
| Real-world-asset collateral | Yes · unverified |
| Own stablecoin | No · unverified |
| Rates | Variable · unverified |
Not disclosed by the provider: Permissionless markets.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Key features
Isolated borrow positions
Every debt position is compartmentalized, preventing liquidations in one position from draining other collateral.
Integrated Zap module
Traders can swap, loop collateral, hedge, or repay loans in a single step using built-in DEX aggregators.
Automated yield strategies
Pre-built strategy vaults let users deploy collateral into specific exposure and yield opportunities without manual maintenance.
Fee rebates via veDOLO
Holding veDOLO gives borrowers weekly rebates of up to 10% on paid interest, refunded in the borrowed token.
Broad collateral support
Users can deposit over 100 assets as collateral, including liquid staking tokens and BTCcx institutional Bitcoin.
Inside Dolomite
Borrow
Lets users take out over-collateralized loans against more than 100 assets while isolating each debt position to contain liquidation risk.
Zap
Routes trades through DEX aggregators inside active margin positions.
Strategies
Offers pre-built yield configurations that users can filter by APR, risk level, or network to deploy automated exposure without manual assembly.
DOLO
Manages governance participation and incentives through DOLO, vote-escrowed veDOLO fee rebates, and protocol-owned liquidity mechanisms.
Dolomite screenshots
User reviews
No user reviews yet. Have you used Dolomite? Share your experience below.
Funding and investors
$2.5MTotal raised
1Round
5Investors
-
Seed May 2023 $2.5M
FAQ
Who founded Dolomite?
Dolomite was co-founded by Corey Caplan and Adam Knuckey, with protocol development conducted alongside Leavitt Innovations and the Dolomite Foundation.
What fees does Dolomite charge?
Dolomite applies variable borrow rates that shift according to pool utilization, alongside a 5.00% liquidation penalty. veDOLO holders can earn rebates returning up to 10% of their borrow interest.
Does Dolomite require KYC?
No, Dolomite is a non-custodial decentralized lending protocol accessed directly through self-custody Web3 wallets without identity verification.
Has Dolomite undergone smart contract audits?
Yes, Dolomite contracts have been audited by six independent security firms: OpenZeppelin, Bramah Systems, SECBIT Labs, Cyfrin, Zokyo, and Guardian.
Which networks does Dolomite support?
Dolomite is deployed on Ethereum, Arbitrum, Berachain, Mantle, X Layer, Polygon zkEVM, and Botanix.
What is the DOLO token used for?
DOLO is the protocol governance token, which works alongside veDOLO for voting and borrow fee rebates, and oDOLO for protocol incentives and liquidity distribution.
Latest from Dolomite on X
$1.8B+ in rewards distributed across 60+ chains. That's @merkl_xyz 🌊
Coinbase, PayPal, Aave, and 1,000+ other teams use Merkl to stream yield and incentives onchain.
Our $WLFI rewards from @worldlibertyfi run on Merkl too, and now you can claim them inside Dolomite.
Coinbase, PayPal, Aave, and 1,000+ other teams use Merkl to stream yield and incentives onchain.
Our $WLFI rewards from @worldlibertyfi run on Merkl too, and now you can claim them inside Dolomite.
$USDG is live on Dolomite! 🏔️
The Global Dollar from @global_dollar, issued by @Paxos, is now on Dolomite @arbitrum.
Supply it, borrow it, or use it as collateral. https://t.co/6ia4HBtOIN
The Global Dollar from @global_dollar, issued by @Paxos, is now on Dolomite @arbitrum.
Supply it, borrow it, or use it as collateral. https://t.co/6ia4HBtOIN
That's a wrap on the October DeFi Roundtable 🎙️
Huge thanks to @lordpemby of @MCDAOio, @nomad_ and @0xtez_ of @StudioDotFun, and @0xcarnation of @shroom_network for joining us!
Listen to the end for the password, then claim your Dolomite XP 👇
https://t.co/18TBUlCkoh
Huge thanks to @lordpemby of @MCDAOio, @nomad_ and @0xtez_ of @StudioDotFun, and @0xcarnation of @shroom_network for joining us!
Listen to the end for the password, then claim your Dolomite XP 👇
https://t.co/18TBUlCkoh
https://t.co/2gf81c7GrX
Recent public posts from @Dolomite_io, shown as published. Not reviewed or endorsed by CryptoReview.
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