Dolomite combines the strengths of a DEX and a lending protocol into the most capital efficient and modular protocol DeFi has seen yet! Dolomite is capable of offering over-collateralized loans, margin trading, spot trading and other financial instruments as well as robust portfolio management through advanced order types, generic token routing, and its virtual liquidity system. Importantly, Dolomite is not some "low-effort" fork with a reskinned UI. It's a fresh take on an extremely expansive and expressive cross-margin system that DeFi has been searching for.
Dolomite is the first lending protocol to allow users to retain their DeFi-native rights with their assets while borrowing against them or using Dolomite's list of growing services. Architecturally, Dolomite is also the first lending protocol that was built to be optimized for L2 - we attempt to pack as much “cool stuff” as possible in any single transaction instead of trying to “gas golf” by slimming transaction content.
Dolomite aims to become a hub for DeFi activity and to deeply connect the emerging Taiko DeFi ecosystem. By listing other project's native DeFi assets, we think Dolomite will become the place where users are educated about opportunities that exist with other protocols through running on-chain campaigns (we call them Achievements on our site). We envision onboarding yield aggregators, DAOs, market makers, hedge funds, retail users, and more to manage their portfolios and run on-chain strategies. We strive for the day when new protocols consider “getting their Dolomite integration” a must-have.
Category
Surprise Us 🤫
Timeline
Dolomite is already live on Arbitrum. We aim to deploy Dolomite on only a few networks where we are willing to bet there will be organic user activity and a network of builders that are pushing the narrative forward by shipping high-quality work. While this grant program may encompass short-term timelines in order to ensure teams deliver some product/features, we aim to align ourselves with Taiko long-term and to create certain features and capabilities that are best exemplified on Taiko.
Milestone 0 (Precursor):
2 weeks: Deploy Dolomite on Taiko (testnet).
Our full tech stack includes:
Solidity smart contracts
A Gnosis Safe multi sig
A delayed multi sig adapter (written in Solidity; this is used to time-gate admin functions)
The Graph (for data indexing on our frontend + liquidations). We use 2 subgraphs in production as of now
Chainlink Price Oracles
Chainlink Automation (for certain DeFi-specific oracles)
Chainlink CCIP (in the future)
We don't require it yet but we'll want to explore cross chain features between L2s so we can seamlessly onboard users on Taiko
Milestone 1:
2 months: Deploy Limit Orders
We want to use on-chain limit orders that contain real liquidity (as opposed to "marketable" limit orders)
Users will be able to create limit orders to take profit on trades or partial/full profits of their positions, enter borrow positions, or rebalance their borrow positions.
This will pave the way for Dolomite to become more of a portfolio management tool for all listed assets.
Milestone 2:
2 months: Deploy Stop Orders + Explore Advanced Order Types
Being able to execute advanced orders on-chain and in DeFi is something sorely missed for spot and margin assets.
It's a tough challenge because we need fast confirmations and a smooth transaction submission UX to make these features usable
These advanced orders can be triggered based on price movement in USD, price ratio movement (IE ETH/BTC price changes). We want to also explore triggering based on interest rate changes, social media metrics (powered by Lunar Crush), and more.
We are working with Chainlink through the BUILD program to enable some of the execution of these advanced features through not-yet-released Chainlink infrastructure to maximize its reliability & robustness
Note this milestone may need to be pushed back or done in two phases, depending on when Chainlink is able to release their portion of the release. In which case, we may run the off-chain executors ourselves during a "trial period" until Chainlink's infrastructure is able to do it.
We will want to get these features audited since there are major economic and technical ramifications
Milestone 3:
Within 6 months of launch: Integrate with at least 3 high profile DeFi protocols that are early supporters of Taiko
As discussed below under Project Impact, Dolomite positions itself as a hub for DeFi activity by unlocking capabilities users can't find elsewhere.
We aim to support early builders of Taiko by enabling Dolomite's lending protocol for them, while allowing their users to retain their rights with their assets
There is no specific deadline for this because it depends on other project's launch timelines and ease of integration with each one.
To see how Dolomite enables various levels of support for other protocols, you can read more on our Integrations page and the corresponding subpages.
We think Taiko's ability to facilitate low-value transactions would be a great for Dolomite to utilize when we roll out some of these higher throughput features.
Project Plan
Resources Required
We already have a team in place that is actively developing, shipping, and marketing new features on the site. Our plan is to work closely with any relevant partners (like Chainlink) and continue to maintain our usual monthly developer meetings and share regular updates with each other through Telegram.
All of these features will require:
Solidity development
Frontend development to connect these features to our dApp
Updates to Dolomite's subgraph mappings to index the data and make it more readily available for querying
Documentation and guides on our site for user education
Some of these features will require:
New Chainlink infrastructure
We can co-market these releases with the Chainlink team and boast them being on Taiko
API access from 3rd party sources, like Lunar Crush
Sustainability
Dolomite intends to transition to a DAO as our community, TVL, and product-market fit grows. The core focus for the DAO will be three things:
Perform governance & risk management on the protocol
Pass along fee revenue to stakers/voters
To obtain protocol-owned liquidity (POL)
a. The DAO will deploy POL to earn additional yield that goes beyond fee revenue
As the DAO accumulates this fee revenue, any contributors to the protocol (like our development company and other service providers) can be compensated through submitting funding proposals to the DAO. The DAO can remit funds if they deem the proposal(s) acceptable.
Obtaining POL is an important goal for the DAO because it lowers the cost of capital down to 0 when the DAO wishes to underwrite a new strategy. Moreover, it means that capital will be sticky and not leave the ecosystem, even during market downturns or stressful market conditions.
Project Impact
Current lending protocols eliminate the innovation that new DeFi projects are creating by restricting what you can do with your assets when you use them as collateral for a loan. Dolomite removes this roadblock and will allow the innovations and uniqueness of Taiko to flourish while also enabling important financial primitives for any DeFi-native assets.
How does this materialize in actuality? Looking at our deployment on Arbitrum as an example, Dolomite is the only lending protocol that has a full integration with GMX's GLP token. It's a complex DeFi asset with various features and restrictions that are abnormal yet wildly successful. Dolomite lets users execute full account transfers for GLP into Dolomite, allowing users to transfer their esGMX rewards into Dolomite without skipping a beat. They can claim & compound their GLP rewards as if they were on the GMX web app. They can vest their esGMX into GMX using staked-GMX or using GLP. They can even vest their esGMX while their GLP is being used in an infinite number of borrow positions. When we release limit orders, they can do all of these native DeFi things while they have limit orders set to sell GLP if prices soar. The possibilities are endless because of Dolomite's modularized architecture, virtual liquidity system and efficient design that enables broad token support.
Dolomite is currently the most composable money market protocol in all of DeFi. This paves the way for Dolomite to connect to every major Taiko project, making Dolomite a hub to list their assets and dramatically increase their network effects when their assets are integrated into Dolomite's growing list of portfolio management features.
Team Information
Corey Caplan & Adam Knuckey are cofounders of Dolomite. They both have dual degree in computer science & business from Lehigh University. Their entry into DeFi began in 2017 when they started contributing to Loopring and built one of the first DEXs in DeFi. Their previous product, Dolomite (same name, same company, but different product), was built on Loopring V2 and was operated until 2021, when they decided to iterate and make something new.
Dolomite is a full-time team size of 6, with 4 of us being engineers and 2 others that work on growth, marketing and operations.
We also have individual contractors that assist with certain features/projects when the team needs additional development resources
Point of Contact
email: corey@dolomite.io discord: coreycaplan.eth
Previous Work
Both Corey and Adam demonstrated proficiency and early interest in DeFi through their usage of Loopring V2 and early version of Dolomite. This current iteration of Dolomite has been live since October of 2022, with ~$7-8M in TVL (as you can see here). We have had no security incidents throughout our tenure on mainnet and are raising the bar in terms of security for DeFi protocols. You can read more about some of these efforts in our docs.
Corey previously exited from a company that sold custom CRM software to Equitable (then AXA Advisors). Corey's entry into crypto was in 2015 when he was building game modding software for an MMO RPG video-game. The company whose game he was modding got his PayPal account suspended, which prompted him to accept Bitcoin for payment.
Adam first entered the crypto industry in 2013 when he helped build an early altcoin miner in Python after befriending people on a programming subreddit.
Additional Information
We are not actively fundraising right now and closed a $2.5M round earlier this year. We are working to achieve long term sustainability of the project as we transition toward a DAO structure for governing the protocol. We'd prefer to discuss some these ideas privately since they're not live nor publicly documented yet.
All of our code is open source and uses Apache 2.0 or GPL 3.0 licenses. However, our frontend is not open sourced now. We think reducing the likelihood of bad actors creating phishing sites and others operating mismanaged forks of Dolomite is more important than open sourcing the frontend at this time.
Agreement
[X] I agree to comply with the terms and conditions of the grants program
Project Description
Dolomite combines the strengths of a DEX and a lending protocol into the most capital efficient and modular protocol DeFi has seen yet! Dolomite is capable of offering over-collateralized loans, margin trading, spot trading and other financial instruments as well as robust portfolio management through advanced order types, generic token routing, and its virtual liquidity system. Importantly, Dolomite is not some "low-effort" fork with a reskinned UI. It's a fresh take on an extremely expansive and expressive cross-margin system that DeFi has been searching for.
Dolomite is the first lending protocol to allow users to retain their DeFi-native rights with their assets while borrowing against them or using Dolomite's list of growing services. Architecturally, Dolomite is also the first lending protocol that was built to be optimized for L2 - we attempt to pack as much “cool stuff” as possible in any single transaction instead of trying to “gas golf” by slimming transaction content.
Dolomite aims to become a hub for DeFi activity and to deeply connect the emerging Taiko DeFi ecosystem. By listing other project's native DeFi assets, we think Dolomite will become the place where users are educated about opportunities that exist with other protocols through running on-chain campaigns (we call them Achievements on our site). We envision onboarding yield aggregators, DAOs, market makers, hedge funds, retail users, and more to manage their portfolios and run on-chain strategies. We strive for the day when new protocols consider “getting their Dolomite integration” a must-have.
Category
Surprise Us 🤫
Timeline
Dolomite is already live on Arbitrum. We aim to deploy Dolomite on only a few networks where we are willing to bet there will be organic user activity and a network of builders that are pushing the narrative forward by shipping high-quality work. While this grant program may encompass short-term timelines in order to ensure teams deliver some product/features, we aim to align ourselves with Taiko long-term and to create certain features and capabilities that are best exemplified on Taiko.
Milestone 0 (Precursor):
Milestone 1:
Milestone 2:
ETH/BTCprice changes). We want to also explore triggering based on interest rate changes, social media metrics (powered by Lunar Crush), and more.Milestone 3:
Project Impact, Dolomite positions itself as a hub for DeFi activity by unlocking capabilities users can't find elsewhere.We think Taiko's ability to facilitate low-value transactions would be a great for Dolomite to utilize when we roll out some of these higher throughput features.
Project Plan
Resources Required
We already have a team in place that is actively developing, shipping, and marketing new features on the site. Our plan is to work closely with any relevant partners (like Chainlink) and continue to maintain our usual monthly developer meetings and share regular updates with each other through Telegram.
All of these features will require:
Some of these features will require:
Sustainability
Dolomite intends to transition to a DAO as our community, TVL, and product-market fit grows. The core focus for the DAO will be three things:
As the DAO accumulates this fee revenue, any contributors to the protocol (like our development company and other service providers) can be compensated through submitting funding proposals to the DAO. The DAO can remit funds if they deem the proposal(s) acceptable.
Obtaining POL is an important goal for the DAO because it lowers the cost of capital down to 0 when the DAO wishes to underwrite a new strategy. Moreover, it means that capital will be sticky and not leave the ecosystem, even during market downturns or stressful market conditions.
Project Impact
Current lending protocols eliminate the innovation that new DeFi projects are creating by restricting what you can do with your assets when you use them as collateral for a loan. Dolomite removes this roadblock and will allow the innovations and uniqueness of Taiko to flourish while also enabling important financial primitives for any DeFi-native assets.
How does this materialize in actuality? Looking at our deployment on Arbitrum as an example, Dolomite is the only lending protocol that has a full integration with GMX's GLP token. It's a complex DeFi asset with various features and restrictions that are abnormal yet wildly successful. Dolomite lets users execute full account transfers for GLP into Dolomite, allowing users to transfer their esGMX rewards into Dolomite without skipping a beat. They can claim & compound their GLP rewards as if they were on the GMX web app. They can vest their esGMX into GMX using staked-GMX or using GLP. They can even vest their esGMX while their GLP is being used in an infinite number of borrow positions. When we release limit orders, they can do all of these native DeFi things while they have limit orders set to sell GLP if prices soar. The possibilities are endless because of Dolomite's modularized architecture, virtual liquidity system and efficient design that enables broad token support.
Dolomite is currently the most composable money market protocol in all of DeFi. This paves the way for Dolomite to connect to every major Taiko project, making Dolomite a hub to list their assets and dramatically increase their network effects when their assets are integrated into Dolomite's growing list of portfolio management features.
Team Information
Corey Caplan & Adam Knuckey are cofounders of Dolomite. They both have dual degree in computer science & business from Lehigh University. Their entry into DeFi began in 2017 when they started contributing to Loopring and built one of the first DEXs in DeFi. Their previous product, Dolomite (same name, same company, but different product), was built on Loopring V2 and was operated until 2021, when they decided to iterate and make something new.
Dolomite is a full-time team size of 6, with 4 of us being engineers and 2 others that work on growth, marketing and operations.
Point of Contact
email:
corey@dolomite.iodiscord:coreycaplan.ethPrevious Work
Both Corey and Adam demonstrated proficiency and early interest in DeFi through their usage of Loopring V2 and early version of Dolomite. This current iteration of Dolomite has been live since October of 2022, with ~$7-8M in TVL (as you can see here). We have had no security incidents throughout our tenure on mainnet and are raising the bar in terms of security for DeFi protocols. You can read more about some of these efforts in our docs.
Corey previously exited from a company that sold custom CRM software to Equitable (then AXA Advisors). Corey's entry into crypto was in 2015 when he was building game modding software for an MMO RPG video-game. The company whose game he was modding got his PayPal account suspended, which prompted him to accept Bitcoin for payment.
Adam first entered the crypto industry in 2013 when he helped build an early altcoin miner in Python after befriending people on a programming subreddit.
Additional Information
We are not actively fundraising right now and closed a $2.5M round earlier this year. We are working to achieve long term sustainability of the project as we transition toward a DAO structure for governing the protocol. We'd prefer to discuss some these ideas privately since they're not live nor publicly documented yet.
Both Daniel Wang and Matthew Finestone are early investors in Dolomite. We have a noteworthy cap table that includes Tim Draper's Draper Goren Blockchain, NGC Ventures, Coinbase Ventures, WWVentures (they also invested in Taiko!), 6MV, RR2 Capital, Token Metrics Ventures and more.
All of our code is open source and uses Apache 2.0 or GPL 3.0 licenses. However, our frontend is not open sourced now. We think reducing the likelihood of bad actors creating phishing sites and others operating mismanaged forks of Dolomite is more important than open sourcing the frontend at this time.
Agreement