What Is Dolomite (DOLO)? A Guide to This Next-Gen Money Market & DEX

Summary Box (Quick Facts)

• Ticker Symbol: DOLO

• Chain: Ethereum, Arbitrum

• Contract Address: 0x0F81001eF0A83ecCE5ccebf63EB302c70a39a654

• Circulating Supply: ~264.89 Million (as of late August 2025)

• Max Supply: 1 Billion

• Primary Use Case: Capital-efficient DeFi money market and DEX.

• Current Market Cap: ~$10.6 Million (as of late August 2025)

• Availability on Phemex: Yes, DOLO/USDT

What Is Dolomite?

Dolomite explained: it is an advanced DeFi protocol that combines the features of a decentralized exchange and a money market into a single, highly efficient platform. It allows for over-collateralized loans, margin trading, and spot trading.

The fundamental problem Dolomite solves is capital inefficiency—the issue of assets sitting dormant when used as collateral. On many platforms, if you deposit an asset to borrow against it, that asset is locked. Dolomite changes this with its innovative architecture, which enables capital efficiency. This means your assets can be recycled or reused to generate multiple sources of yield at the same time. For example, you can earn lending yield on your deposits while simultaneously earning swap fees, making your capital work harder for you. Over time, Dolomite aims to become a central hub for DeFi activity where traders, DAOs, and funds can manage their portfolios with maximum efficiency.

How Many DOLO Tokens Are There?

The DOLO token has a fixed maximum supply of 1 billion tokens. A portion of this total is in the circulating supply, which represents the number of tokens actively available on the market. To support long-term growth and liquidity incentives, the DOLO token is programmed with a 3% annual inflation rate, which will begin four years after its initial launch. The Dolomite ecosystem also incorporates mechanisms designed to create buy pressure for DOLO, such as rewarding liquidity providers with oDOLO tokens that can be combined with DOLO for discounted access to governance rights.

What Does the DOLO Token Do?

The DOLO token is integral to the functionality of the Dolomite ecosystem. The primary DOLO use case is to facilitate governance, distribute incentives, and foster deep liquidity. The ecosystem is built around three key token variations:

• DOLO: The standard utility token used to Trade DOLO, lend, and serve as the primary entry point into the ecosystem.

• veDOLO: This is your gateway to unlocking the full power of the Dolomite ecosystem. When you stake DOLO, your time-locked position (up to two years) is represented as a unique NFT. This veDOLO NFT grants you several key benefits:

  • Voting Power: Participate in governance to shape the future direction of the Dolomite protocol.

  • Yield: Earn a share of the fees generated by the platform, paid out in major cryptocurrencies like ETH or stablecoins.

  • oDOLO Discount: Receive a larger discount (scaling from 5% up to 50%) when converting oDOLO rewards into more veDOLO.

  • Flexibility: You have the option to exit your locked staking position early in exchange for a penalty.

• oDOLO: A reward token for liquidity providers, incentivizing long-term staking and supporting the protocol’s financial health.

Dolomite vs. Uniswap

While both are key players in the DeFi space, Dolomite and Uniswap are designed to serve different primary functions. Uniswap is the leading Automated Market Maker (AMM) for token swaps, whereas Dolomite integrates this functionality with a full-service money market.

The Technology Behind Dolomite: A Modular and Efficient Design

Dolomite's technical advantage comes from its extremely modular two-layer architecture.

1. The Core Layer: This is the immutable foundation of the protocol. "Immutable" means it cannot be changed, ensuring that the core logic for lending and borrowing remains secure and predictable.

2. The Module Layer: This is a flexible, mutable layer built on top of the core. It allows developers to add new features, integrations, and asset types (like yield aggregators or options vaults) without compromising the security of the core system. This design makes Dolomite both secure and future-proof.

This architecture enables virtual liquidity, a system that recycles liquidity internally to boost capital efficiency. A real-world example of its power was the USDC depeg event in 2023. On other platforms, users rushed to withdraw stablecoins like USDT to buy the de-pegged USDC, causing a liquidity crisis and skyrocketing borrow rates. With Dolomite's internal liquidity, users could have swapped their virtual USDT for another asset without ever withdrawing it from the system. This would have kept more USDT available, borrow rates lower, and the protocol more stable.

Furthermore, this technology empowers users to retain control over their assets. For instance, a user can deposit a staked asset like plvGLP, borrow against its full value, and still claim its staking rewards directly from the Dolomite interface, all while the asset serves as collateral.

Team & Origins

Dolomite was developed by Leavitt Innovations, co-founded by Corey Caplan and Adam Knuckey. The team has been active in the DEX space since 2018, launching the current version of Dolomite in October 2022. The project is backed by prominent VCs, including Draper Goren Holm, NGC Ventures, and Coinbase Ventures. Stay informed with the latest News about DOLO.

Key News & Events

• Exchange Listings: DOLO is available on several major crypto exchanges, expanding its reach.

• Community Airdrops: The project has conducted airdrops to reward early supporters.

Is DOLO a Good Investment?

Evaluating the DOLO investment potential requires analyzing its unique technology and market position. Its innovative focus on capital efficiency, modular architecture, and the ability for users to retain control over collateral are significant competitive advantages. Backing from reputable VCs also adds credibility.

However, the DOLO price is subject to market volatility. The DeFi space is competitive and faces regulatory uncertainty. Dolomite's success hinges on its ability to attract and retain significant liquidity and user activity.

Disclaimer: This is not financial advice. Crypto trading involves risks; only invest what you can afford to lose.

How to Buy DOLO on Phemex

For those looking to invest in Dolomite, Phemex offers a secure and user-friendly platform. You can easily find the DOLO/USDT trading pair to get started. For a step-by-step walkthrough, please refer to Phemex's official guide on "How to buy Dolomite".

FAQs

What makes Dolomite's 'Dynamic Collateral' system unique?
Unlike platforms that lock your collateral, Dolomite allows it to remain productive. For example, you can deposit a yield-bearing token, use it as collateral for a loan, and continue earning that token's native yield simultaneously. This "double-dipping" on returns is a key differentiator for capital efficiency.

Why is veDOLO structured as an NFT instead of a standard token?
Structuring veDOLO as an NFT provides greater flexibility. It allows governance positions (which vary in lock-up time and amount) to be easily bought, sold, or transferred on secondary markets. This creates a liquid market for governance power, which is not possible with traditional vote-escrowed tokens.

How does Dolomite ensure the security of user funds on its platform?
Dolomite prioritizes security through multiple layers. Its smart contracts undergo rigorous and continuous audits by reputable third-party security firms. The protocol is also non-custodial, meaning users always retain control of their private keys and funds, which are secured on the blockchain, not by Dolomite itself.