Dolomite, a new decentralized money market protocol, is launching its native token, $DOLO today. This historic vote advances the development of decentralized finance (DeFi) one step deeper into the DeFi innovation boon. The platform enables issuers to use more than 1,000 different unique assets. Now it’s charting $DOLO on Kraken and other major exchanges! This development significantly increases user participation and governance opportunities within the Dolomite ecosystem. Beyond that, it addresses the specific challenges posed by DeFi platforms. Dolomite has built out its entire infrastructure on smart contracts deployed on Arbitrum, which is an L2 blockchain solution for Ethereum. This configuration serves to imbue a safe, trustworthy environment around lending and borrowing on the platform. Prepare yourself for a spectacular airdrop of $DOLO. Through this initiative, one-fifth of the entire supply will be given to incentivize early platform users and participants in the Minerals Program, increasing community participation and helping the platform flourish.
Expanding Asset Support and Liquidation Protocol
Dolomite sets itself apart as the only lending and borrowing platform that can support 1,000+ unique assets. This powerful new capability extends access to the world of cryptocurrency with no limits. Further, it unlocks significant new potential for more active portfolio diversification and yield generation. The platform’s architecture is specifically designed to support any and all digital assets. We believe this design encourages a much more flexible, diverse, and inclusive DeFi ecosystem.
To mitigate risk and maintain the integrity of the platform, Dolomite uses a liquidation protocol to enforce on-chain liquidation of undercollateralized positions. This protocol allows continuous monitoring of user accounts. If a user’s collateral value goes under 115% of their borrowed crypto, this means the user’s account is eligible for liquidation. This fundamental mechanism offers active protection to the platform from market volatility driven potential losses. It protects lenders and protects the system from going into an overall insolvency.
$DOLO Token Launch and Airdrop Details
The recent introduction of $DOLO, Dolomite’s native token, marks a major milestone for the platform. It creates new capabilities and new reasons for users to shift to other, more efficient modes. The highly anticipated token will be available on Kraken and other leading exchanges when it launches. This move will increase its accessibility and liquidity in the broader crypto ecosystem.
Dolomite has set aside 20% of the $DOLO supply for an airdrop. This latest effort returns value to platform users and participants in the Minerals Program with their launch. Recipients will have a six-month redemption period to claim their tokens. Furthermore, 50% of the claimed tokens will unlock as liquid $DOLO, offering instant utility and trading opportunities. The remaining half will be released as a pegged version of $DOLO. This will provide holders exclusive access to protocol and governance benefits incentivizing them to participate long-term and contribute to the platform's growth.
Security, Governance, and DeFi Risks
Dolomite uses smart contracts and blockchain technology, namely Arbitrum, to provide transparency and security. As an L2 solution improving Ethereum, Arbitrum enables public and transparent settlement, lowering the cost of transactions while boosting speed. This infrastructure is designed to ensure a strong and steady foundation for the platform’s work.
Dolomite creates hurdles that users of traditional finance (TradFi) services are not accustomed to. Governance is one of the key risks in DeFi today, since with controversial protocols the control and governance are effectively decentralized to the token holders themselves. This creates opportunities that introduce ambiguities and possible weaknesses unless new governance structures are thoughtfully crafted and maintained. Users need to know about these risks and get involved in governance to protect their interests.
