What is Dolomite (DOLO)? Features, Tokenomics, and Price

What is Dolomite (DOLO) and why is this project considered more than just a regular lending protocol and different from the typical DeFi lending platforms?

Using technologies like Dynamic Collateral and Smart Debt, the project aims to deliver greater capital efficiency within a decentralized ecosystem. Read this article to learn about DOLO's key features, tokenomics, and current price.

Key Takeaways

• Dolomite is a money market and DeFi trading protocol with a Dynamic Collateral system.
• DOLO is the primary token for governance, incentives, and liquidity.
• Users can continue staking, voting, and earning while pledging assets.

What is Dolomite (DOLO)?

Image Source: Dolomite

Dolomite (DOLO) is a decentralized money market and trading protocol designed to provide more capital-efficient lending, borrowing, and trading solutions.

Unlike conventional DeFi platforms, Dolomite allows collateralized assets to still be used for other activities such as staking, voting, or earning rewards.

This feature is made possible by the Dynamic Collateral system, which prevents assets from being "idle" when used as collateral. This makes Dolomite particularly attractive to DeFi users looking to maximize the productivity of their assets.

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Key Features of Dolomite (DOLO)  

Dolomite (DOLO) is built on a highly flexible, modular architecture. The protocol supports up to 1,000 different assets and easily integrates with other DeFi protocols, opening up cross-ecosystem composability.

Some of the key features of Dolomite (DOLO) include:

1. Dynamic Collateral System

Users can still use their collateralized assets for other activities, such as staking or governance, without sacrificing liquidity.

2. Automatic E-Mode

E-Mode automatically adjusts the LTV ratio based on the price correlation between the collateral asset and the loan asset.

If the price movement is in line, users can get higher leverage with more controlled risk.

3. Smart Debt & Smart Collateral

This system allows debt and collateral assets to be utilized as liquidity for swaps between assets that have price correlation.

This way, users can earn trading fees while still earning yields from lending, thereby reducing borrowing costs.

4. Zap and Strategies Hub

The Zap feature makes it easy for users to leverage or hedge with just one click, without the hassle of manually setting up a flash loan.

Meanwhile, the Strategies Hub simplifies advanced DeFi strategies like looping, pair trading, and delta-neutral yield farming to make them more accessible to the general public.

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DOLO token

The Dolomite ecosystem is powered by DOLO, an ERC-20 token available on various networks such as Berachain, Ethereum, Arbitrum, and others.

Interestingly, DOLO token has the same token address across the network and is cross-chain native thanks to Chainlink CCIP technology.

In the Dolomite ecosystem, there are three main types of tokens:

1. DOLO: The primary token that can be traded on the market and is used as the foundation for governance and ecosystem incentives.

2. veDOLO: A time-locked governance token that grants voting rights, protocol revenue sharing, and continued participation benefits. These tokens can be redeemed early, but with a penalty.

3. oDOLO: An incentive token for liquidity providers that can be converted into veDOLO at a discounted rate, thus encouraging long-term participation.

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Tokenomics of DOLO

The DOLO token distribution is designed to balance community incentives, investors, and the long-term growth of the DAO.

Here are the DOLO tokenomics:

Team: 20,21%

Advisors: 0,21%

Seed Investor: 13,79%

Strategic Investors: 1,39%

Ecosystem Incentives 1: 20,00%

Ecosystem Incentives 2: 3,00%

Ecosystem Incentives 3: 2,75%

Protocol-Owned Liquidity: 2,00%

Service Providers: 3,00%

Boyco Incentives: 3,00%

Treasury: 10,65%

Retroactive Airdrop: 20,00%

Of the total supply, approximately 46.82% of tokens are already in circulation, while the remainder remains locked to support the sustainability of the ecosystem.

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DOLO Price Today

Based on the latest charts, DOLO price today is around Rp1,117 with a very significant daily increase.

In the last 24 hours, DOLO recorded a price surge of more than +50%, with trading volume increased sharply.

Technically, the price movement indicates a breakout from the previous consolidation area, with supporting volume.

This condition usually reflects increasing market interest in the DOLO token, although it is still necessary to be aware of the potential for short-term corrections.

Read Also: What is INDR Token? An Indonesian Rupiah-based stablecoin (IDR).

Conclusion

So, Dolomite (DOLO) is an innovative DeFi protocol that combines lending, borrowing, and trading with high capital efficiency.

With features like Dynamic Collateral, Smart Debt, and a multi-layer token system, Dolomite offers a new approach to maximizing crypto assets.

Meanwhile, DOLO as the main token plays a vital role in governance, incentives, and long-term ecosystem growth.

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FAQ

What is Dolomite (DOLO)?

Dolomite is a DeFi protocol for lending, borrowing, and trading with a dynamic collateral system.

What is the function of the DOLO token?

DOLO is used for governance, ecosystem incentives, and protocol liquidity.

What is veDOLO?

veDOLO is a lock-based governance token that grants voting rights and revenue sharing.

On which networks is DOLO available?

DOLO is available on Berachain, Ethereum, Arbitrum, and other networks with the same token address.

Is DOLO suitable for the long term?

The potential is there, especially given the focus on capital efficiency and advanced DeFi, but research and risk management are still needed.