Dolomite (DOLO): Capital‑Efficient DeFi Protocol On Berachain

What is Dolomite and how does it work?

 

Dolomite is a next-generation DeFi protocol that combines both DEX and lending/money-market functionalities, enabling users to lend, borrow, margin trade, and spot trade all within the same system.

 

The protocol is designed with a two-layer modular architecture:

   • Core layer (immutable layer): ensures stability and security, responsible for basic functions such as deposits, withdrawals, and trading. It can only be adjusted through protocol governance.

   • Module layer (mutable layer): allows expansion with features like DEX aggregators, yield strategies, and farming, without affecting the core layer.

 

Virtual liquidity – Maximizing capital efficiency

 

The standout feature of Dolomite is its Virtual Liquidity system, which allows users to:

   • Provide liquidity to AMM

   • Borrow on margin

   • Participate in yield farming

 

All from the same single asset, helping maximize profits while reducing the risk of transferring assets between different platforms.

 

Wide asset support

 

Dolomite supports thousands of assets, including non-standard tokens such as staked LP tokens and yield-bearing assets. This gives users flexibility to build a diverse investment portfolio.

 

Tokenomics: DOLO, veDOLO, and oDOLO

 

Dolomite operates with a three-token model:

   • DOLO: the core ERC-20 token, used for trading, liquidity provision, and as the backbone of the ecosystem.

   • veDOLO: vote-escrowed token, in NFT form, used for governance and fee-sharing. The longer the lock-up, the greater the benefits.

   • oDOLO: reward token for liquidity providers. Users can convert DOLO into veDOLO at a discount, encouraging long-term participation.

 

Token distribution and development plan

 

Total supply: 1 billion DOLO.

Main allocations:

   • Community + airdrop/liquidity mining: 50.75%

   • Core team: 20.2% (3-year vesting, 1-year cliff)

   • Investors, other airdrop programs, and partner

TGE (Token Generation Event): April 24, 2025, on Berachain and Ethereum.

CCIP – Cross-chain: DOLO can easily move across chains thanks to Chainlink CCIP.

Inflation: Starting from year 4, the protocol will apply a 3% annual inflation to support ecosystem growth and the DAO treasury.

 

Team, investment, and transition to DAO

 

Dolomite is developed by Leavitt Innovations, with founders Corey Caplan and Adam Knuckey. The project has raised about $4.2 million from major funds such as Draper Goren Holm, NGC Ventures, Coinbase Ventures, and Token Metrics Ventures.

 

Dolomite is transitioning to a DAO governance model to enhance transparency and give more decision-making power to the community.

 

Key advantages

 

Capital efficiency: thanks to Virtual Liquidity, assets can be used across multiple functions without moving them around.

   • Broad asset support: includes both standard and non-standard tokens.

   • Innovative token model: promotes governance and long-term liquidity incentives.

   • Open architecture: easily upgradable and flexible for new feature integrations.

   • Long-term sustainability: supported by DAO funding and a controlled inflation model.

 

Risks and considerations

 

Despite Dolomite’s strong technological foundation and backing from major funds, the DeFi market remains highly competitive. Users should carefully monitor its roadmap, DAO transition, and tokenomics before making deeper commitments.

 

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.