Meet Dolomite: Pioneering the Future of On-Chain Finance
The promise of DeFi transcends mere financial transactions. The underlying power of DeFi lies in its ability to offer a world of interconnected and composable systems. Yet, many platforms barely scratch the surface of what's possible. Enter Dolomite—a paradigm shift in the DeFi arena, aiming to leverage the full potential of on-chain finance.
Yield Maximization: A Core Philosophy
Assets within the DeFi realm wear many hats—staking, vesting, entitlement to rewards, and more. Handing them over to typical AMMs and DEXs often equates to relinquishing these rights. Dolomite changes the game. Here, these rights are respected, allowing lending and borrowing without compromising intrinsic asset rights.
Dolomite’s interface.
Dolomite is engineered to ensure your assets are optimized for maximum yield generation. Upon depositing assets such as ETH or USDC, the interest accrual begins. But the journey doesn’t end here. By participating in the Dolomite ETH-USDC AMM pool, users can simultaneously earn trading fees and continue accruing lending interest. The narrative extends when Dolomite lists the LP token for lending and borrowing, presenting a cascade of earning avenues. It’s a meticulously crafted ecosystem where every asset is poised to generate yield, embodying a seamless fusion of lending, borrowing, and trading functionalities.
Zap Feature: Amplifying Asset Capabilities
Dolomite's innovative “Zap feature” epitomizes the vision of expanding user possibilities. With the Zap functionality, users can:
Instantly swap an asset and utilize it as collateral—all in a single transaction.
Directly employ collateral to settle loans.
Deposit collateral using an unheld asset.
Extract collateral into a distinct asset.
Expansive Asset Accommodation
Dolomite transcends the norm by embracing a broad spectrum of assets, far beyond the conventional limited roster of $ETH, $WBTC, $USDC, and $DAI often found in other lending protocols. Dolomite’s architecture can support thousands of assets, making Dolomite a lending protocol built for the next generation of DeFi, where users can tap into what would have otherwise been illiquid assets.
Dolomite can support thousand of assets.
Beyond Lending: A Trading Arena
While its lending capabilities are stellar, Dolomite offers a spot and margin DEX for $USDC and $ETH, integrated with the same liquidity pool, offering a CEX-like trading experience, with plans to expand the assets offered.
Dolomite’s DEX interface.
Allying with Arbitrum & Chainlink
Dolomite chose Arbitrum’s fast, cost-effective transaction environment to power Dolomite to deploy advanced functionalities which would be infeasible on the Ethereum mainnet. Moreover, the vibrant community of innovative projects on Arbitrum fosters a collaborative milieu that is intrinsic to Dolomite’s success, facilitating a synergistic interaction with a diverse range of assets and projects.
Chainlink Collaboration
Dolomite was one of the first ten Chainlink BUILD partners.
Dolomite was a pioneering Chainlink BUILD partner, being announced in November 2022. They have also incorporated Chainlink Automation (formerly Price Feeds) to maintain stability and reliability, especially during volatile market conditions. The roadmap entails a deeper integration with Chainlink, unlocking novel functionalities that will augment the capabilities of Dolomite.
“We’re working closely with the Chainlink team to unlock new capabilities in the Chainlink tech stack and combine their services together in ways that haven’t been done before to service new features that will transform Dolomite into something much more powerful, such as limit orders, stop loss, and take profit for borrow positions.”
Although Dolomite chose Arbitrum’s fast, cost-effective transaction environment to launch and power Dolomite, thanks to Chainlink’s CCIP (Cross-Chain Interoperability Protocol), the Dolomite team plans to deploy to multiple chains to make Dolomite even more powerful.
“We think it’s going to be exciting to combine these features with CCIP too, so we can enable robust cross-chain infrastructure as Dolomite deploys to multiple L2 networks.”
Meet the team at Dolomite
Driving Dolomite's revolutionary journey are its co-founders, Adam and Corey. Their initial endeavour was a hybrid DEX model, which transitioned around 2020 to align with the evolving DeFi landscape, leading to the Dolomite we see today. This modern rendition is a testament to their acquired knowledge to advance lending protocols to match the next-gen DeFi standards.
Dolomite’s serious take on security makes it a great match with Chainlink, which also has a security-centric ethos. With a live app for over a year without a token, Dolomite underscores a commitment to innovation over instant gratification.
Conclusion
While the debate on the dominance of decentralized exchanges (DEXs) over centralized ones (CEXs) rages on, Dolomite envisions a future where DEXs, bolstered by unparalleled utility and functionality, emerge as the favoured choice. By offering a platform rivalling CEXs in terms of features, yet emphasizing transparency and DeFi integration, Dolomite stands poised to lead users seamlessly into the decentralized exchange era.
