What Dolomite is
Dolomite is a DeFi protocol founded by former university classmates Corey Caplan and Adam Knuckey. Born around 2019 as a decentralised exchange on Ethereum powered by the Loopring protocol, it was completely rethought as a lending and margin trading platform, active first on Arbitrum and then on Berachain, where in 2025 it became one of the flagship applications thanks to the Proof of Liquidity mechanism. In 2026 most deposits moved to Ethereum. (Verified: October 2026) The protocol allows users to lend, borrow and trade while keeping custody of their assets, with support for a very wide range of tokens. On 24 April 2025 it held the DOLO Token Generation Event, with an airdrop of 20% of the supply; in August 2025 DOLO was the 33rd project in Binance's HODLer airdrops. Backers include Coinbase Ventures. (Verified: September 2026)
Regulation and licences
- MiCA-CASP: not applicable/not found. Dolomite is a non-custodial DeFi protocol: it does not hold client funds and is not an authorised CASP. Anyone using it from the EU does not enjoy the MiCA protections provided for clients of authorised exchanges; the risks inherent to DeFi apply. (Verified: September 2026)
- Worth noting for context: co-founder Corey Caplan is also Head of Technical Strategy at World Liberty Financial, the DeFi project connected to the Trump family. (Verified: September 2026)
Security
In March 2024 an exploit of an old 2019 smart contract (the project's Loopring era) took around 1.8 million dollars from users who still had active approvals on that contract; the current contracts were untouched. The outcome is documented: around 90% of the funds were recovered within days and the remaining 10% was reimbursed from the protocol's treasury, with a public post-mortem from the team. The affair is also a general reminder about hygiene around old approvals in wallets. (Verified: September 2026)
FAQ
Is Dolomite still a DEX on Loopring? No: that is the project's first life. Today Dolomite is a lending and margin trading protocol active on Ethereum, Arbitrum, Berachain and other networks: as of October 2026, according to DefiLlama, more than 80% of deposits are on Ethereum. The DOLO governance token was launched in April 2025. (Verified: October 2026)
Did the 2024 hack leave users with losses? No: it affected only those with residual approvals on a 2019 contract; 90% of the funds were recovered and the rest reimbursed from the treasury. (Verified: September 2026)
Verified sources
- https://defillama.com/protocol/dolomite
- https://cointelegraph.com/news/old-dolomite-exchange-contract-suffers-1-8-million-loss-fro
- https://medium.com/dolomite-official/legacy-smart-contract-vulnerability-post-mortem-analy
- https://decrypt.co/316125/worlds-10th-largest-defi-lending-app-dolomite-launches-200m-toke
- https://defiprime.com/dolomite
