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DIP-02: oDOLO Emissions Across Chains & Assets

The proposal text below is preserved exactly as presented for the governance vote. Only the status summary above is updated over time.


Title

[DIP-02] Adjust oDOLO Emissions Distribution Across Chains & Assets

Author(s)

Dolomite Team

Date

2025-08-25

None

Simple Summary

This proposal updates the chain-level and asset-level distribution of oDOLO emissions. It reallocates emissions to account for the launch of Botanix and adjusts existing weights to balance incentives across chains and assets.

Abstract

Currently, oDOLO emissions are allocated across Arbitrum, Berachain, and Ethereum. This proposal modifies the chain distribution to add Botanix and adjust weights on the existing chains. It also updates the internal asset distribution on Berachain to include BYUSD and rebalance existing asset weights.

Motivation & Background

  • Support the launch and growth of Botanix by allocating a portion of emissions to its assets.

  • Give greater support to the growth of liquidity on Abitrum.

  • Introduce BYUSD to the Berachain rewards mix to deepen stablecoin liquidity.

  • Maintain a diversified allocation to reduce reliance on any single asset or chain.

Specification

Chain-Level Distribution

Old:

  • Arbitrum - 20%

  • Berachain - 45%

  • Ethereum - 35%

New:

  • Arbitrum - 30%

  • Berachain - 35%

  • Ethereum - 30%

  • Botanix - 5%

Botanix Sub-Allocation

  • BTC - 66.66% of Botanix emissions

  • USDC.e - 33.33% of Botanix emissions

Berachain Sub-Allocation

Old:

  • HONEY - 22.22%

  • USDC - 22.22%

  • BERA - 22.22%

  • WBTC - 16.66%

  • ETH - 16.66%

New:

  • HONEY - 20%

  • USDC - 20%

  • BERA - 20%

  • WBTC - 15%

  • ETH - 15%

  • BYUSD - 10%

Economic & Market Impact

  • Botanix Growth: Allocation will bootstrap liquidity and trading activity on Botanix.

  • Stablecoin Depth: BYUSD inclusion strengthens Berachain’s stablecoin market.

  • Liquidity Shifts: Arbitrum had been receiving a lower share of oDOLO incentives, but with continued strong activity around GM assets, this update seeks to deepen borrowing liquidity and protocol growth on Arbitrum.

Risks & Considerations

  • Reduced emissions to Berachain and Ethereum may affect growth and liquidity.

  • Botanix is a newer and less proven chain, so utilizing incentives there has the risk of less return in TVL.

  • BYUSD market depth and stability should be monitored to avoid concentration risk.

Implementation Plan

  • Update emissions distribution in rewards smart contracts.

  • Update the UI to reflect the incentives available on Botanix.

  • Announce the changes to the community with effective date.

Success Criteria & Metrics

  • Change in TVL of affected assets and chains

Additional Information & References

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