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Risk Mitigation

Dolomite has an expressive system for managing the protocol's risks.

Price Oracles

Dolomite leverages Chainlink price oracles wherever possible in its collateral calculations for ordinary assets. Dolomite's usage and collaboration with Chainlink through the BUILD program is documented in the following press release about joining the program.
Some unique assets, like GLP, require some extra calculations and precaution when marking the value of it as collateral. After accounting for any additional business logic required for a unique asset, common collateral calculations then done through Chainlink, as usual.

Arbitrum One

Market ID
Symbol
Oracle Address
0
WETH
1
DAI
2
USDC.e
3
LINK
4
WBTC
5
USDT
6
GLP
7
ARB
8
magicGLP
9
plvGLP
10
jUSDC
11
PT-GLP (Mar 2024)
12
UNI
13
MIM
14
wstETH
15
rETH
16
YT-GLP (Mar 2024)
17
USDC
18
GRAIL
19
MAGIC
20
DPX
21
PENDLE
22
PT-rETH (Jun 2025)
23
PT-wstETH (Jun 2024)
24
PT-wstETH (Jun 2025)
25
JONES
26
PREMIA
27
RDNT
You can check this table is correct and up-to-date by visiting DolomiteMargin on Arbiscan, clicking Read Contract, selecting the getMarketPriceOracle function and plugging in the corresponding marketId into the input field.

Supply Caps

Dolomite is able to institute supply caps for individual assets, which limits the protocol's exposure to debt taken against those assets as well as limits the ability to borrow those same assets. If a supply cap is instituted and the protocol is beyond the limitation, the protocol will be in a wind-down-only mode for that asset. Meaning, all transactions executed against Dolomite Margin for that asset needs to size down the market or, at the minimum, leave it unchanged.

Arbitrum One

Market ID
Symbol
Supply Cap
0
WETH
No limit
1
DAI
2,000,000 DAI
2
USDC.e
No limit
3
LINK
500,000 LINK
4
WBTC
100 WBTC
5
USDT
25,000,000 USDT
6
GLP
No limit
7
ARB
5,000,000 ARB
8
magicGLP
5,000,000 magicGLP
9
plvGLP
5,000,000 plvGLP
10
jUSDC
1,00,000 jUSDC
11
PT-GLP (Mar 2024)
1,000,000 PT-GLP
12
UNI
400,000 UNI
13
MIM
1,000,000 MIM
14
wstETH
3,000 wstETH
15
rETH
1,000 rETH
16
YT-GLP (Mar 2024)
500,000 YT-GLP
17
USDC
No limit
18
GRAIL
500 GRAIL
19
MAGIC
1,250,000 MAGIC
20
DPX
2,000 DPX
21
PENDLE
1,250,000 PENDLE
22
PT-rETH (Jun 2025)
1,000 PT-rETH
23
PT-wstETH (Jun 2024)
1,000 PT-wstETH
24
PT-wstETH (Jun 2025)
750 PT-wstETH
25
JONES
100,000 JONES
26
PREMIA
500,000 PREMIA
27
RDNT
5,000,000 RDNT
You can check this table is correct and up-to-date by visiting DolomiteMargin on Arbiscan, clicking Read Contract, selecting the getMarketMaxWei function and plugging in the corresponding marketId into the input field.

Minimum Collateralizations (LTVs)

Typical to any money market protocol, Dolomite mandates a global minimum collateralization that all positions must have to be considered healthy. Any position that slips below this threshold is subject to liquidation (more on this below).
Some assets have additional collateralization requirements beyond the global minimum. The table below denotes the collateralization requirements for each asset on each network Dolomite Margin is deployed.

Arbitrum One

Minimum collateralization: 115% (86.9565% LTV)
Market ID
Symbol
Minimum Collateralization (% LTV)
0
WETH
115% (or 86.9565% LTV)
1
DAI
115% (or 86.9565% LTV)
2
USDC.e
115% (or 86.9565% LTV)
3
LINK
125% (or 80% LTV)
4
WBTC
125% (or 80% LTV)
5
USDT
115% (or 86.9565% LTV)
6
GLP
120% (or 83.3333% LTV)
7
ARB
120% (or 83.3333% LTV)
8
magicGLP
120% (or 83.3333% LTV)
9
plvGLP
120% (or 83.3333% LTV)
10
jUSDC
115% (or 86.9565% LTV)
11
PT-GLP (Mar 2024)
120% (or 83.3333% LTV)
12
UNI
133% (or 75% LTV)
13
MIM
115% (or 86.9565% LTV)
14
wstETH
115% (or 86.9565% LTV)
15
rETH
115% (or 86.9565% LTV)
16
YT-GLP (Mar 2024)
150% (or 66.6667% LTV)
17
USDC
115% (or 86.9565% LTV)
18
GRAIL
150% (or 66.6667% LTV)
19
MAGIC
150% (or 66.6667% LTV)
20
DPX
150% (or 66.6667% LTV)
21
PENDLE
150% (or 66.6667% LTV)
22
PT-rETH (Jun 2025)
120% (or 83.3333% LTV)
23
PT-wstETH (Jun 2024)
120% (or 83.3333% LTV)
24
PT-wstETH (Jun 2025)
120% (or 83.3333% LTV)
25
JONES
166% (or 60% LTV)
26
PREMIA
166% (or 60% LTV)
27
RDNT
125% (or 80% LTV)
You can check this table is correct and up-to-date by visiting DolomiteMargin on Arbiscan, clicking Read Contract, selecting the getMarginRatio function, adding 1e18 then dividing by 1e18. Doing so gives you the global minimum collateralization (115%).
Then, select the getMarketMarginPremium function and plug in the corresponding marketId into the input field. With the margin premium, add 1e18, divide by 1e18, then multiply the result by 115% (the global minimum collateralization).
For example, the Margin Premium for GLP is 43478260869565217. By adding 1e18 and dividing by 1e18 the result is 1.043478260869565217. When you multiply 115% by 1.043478260869565217, you get about 120%.

Collateral-Only Mode

Dolomite can put assets into collateral-only mode, to prevent any user from borrowing them. If a market moves from collateral-only mode being disabled to enabled, then the market will be in a wind-down mode with respect to any out standing borrows. Users that have any debt will not be able to increase the size of our loans and the protocol could enforce liquidations for those users to forcefully pay their debt back. Putting an asset into collateral-only mode could be due to a variety of reasons, like:
  • The asset's price oracle is manipulatable to the upside (which increases the surface area for economic attack vectors)
  • The asset's price oracle offers a quote that is lower-than-normal, like the price oracle for GLP
  • Economically speaking, Dolomite or an integrating protocol doesn't want to encourage the borrowing of certain assets
The table below denotes the borrowing status of each asset on each network Dolomite Margin is deployed.

Arbitrum One

Market ID
Symbol
Collateral-Only Mode Enabled
0
WETH
FALSE
1
DAI
FALSE
2
USDC.e
FALSE
3
LINK
FALSE
4
WBTC
FALSE
5
USDT
FALSE
6
GLP
TRUE
7
ARB
FALSE
8
magicGLP
TRUE
9
plvGLP
TRUE
10
jUSDC
TRUE
11
PT-GLP (Mar 2024)
TRUE
12
UNI
FALSE
13
MIM
FALSE
14
wstETH
FALSE
15
rETH
FALSE
16
YT-GLP (Mar 2024)
TRUE
17
USDC
FALSE
18
GRAIL
FALSE
19
MAGIC
FALSE
20
DPX
FALSE
21
PENDLE
FALSE
22
PT-rETH (Jun 2025)
TRUE
23
PT-wstETH (Jun 2024)
TRUE
24
PT-wstETH (Jun 2025)
TRUE
25
JONES
TRUE
26
PREMIA
TRUE
27
RDNT
FALSE
You can check this table is correct and up-to-date by visiting DolomiteMargin on Arbiscan, clicking Read Contract, selecting the getMarketIsClosing function and plugging in the corresponding marketId into the input field.

Isolation Mode

Isolation Mode is an extremely expressive mechanism for limiting or expanding the functionality of certain assets in Dolomite Margin. Using Isolation Mode allows Dolomite to dictate which assets can be borrowed against a specific collateral asset, which collateral assets can be used in a position with the Isolation Mode asset, and allow native interactions with the underlying tokens for things like on-chain voting, capturing rewards, or other actions that are specific to the asset.
Once an asset is deployed with Isolation Mode enabled, it can never be disabled. However the settings for Isolation Mode can be tweaked over time if the implementation (per asset) allows for it, liquidity constraints change, or other factors that are outside of Dolomite's control.
Isolation Mode assets are deployed as wrapped contracts around the listed asset. So the contract address you see on block explorers may appear different. Typically, these assets will be listed with a lowercase d in the symbol and the name will be prefixed with Dolomite Isolation:. Meaning, for plvGLP, the technical name on-chain is Dolomite Isolation: Plutus Vault GLP and the symbol is dplvGLP.
When you make your first deposit of an Isolation Mode asset into Dolomite, the token approval will be set on your vault address. The vault smart contract isn't created until the deposit occurs, so it may look like an externally-owned account (EOA), but it's not. Dolomite uses Create2 for the creation of the vaults, so your vault address is known before the deposit is executed and the vault is created.
Notably, if you open a borrow position with an Isolation Mode asset, it can never contain another asset in the position that is in Isolation Mode. The differences amongst different Isolation Mode levels can be seen in the table below.
Level
Description
1
Can contain any debt or collateral asset in the same position, as long as those assets are not in isolation mode
2
Can contain only specific collateral assets or specific debt assets in the same position. Cannot contain assets in the same position that are in isolation mode.
3
Cannot contain any other collateral asset in the same position. Can only contain specific debt assets in the same position. Cannot contain assets in the same position that are in isolation mode
The table below denotes the isolation mode status of each asset on each network Dolomite Margin is deployed.

Arbitrum One

Market ID
Symbol
Isolation Mode Level
0
WETH
DISABLED
1
DAI
DISABLED
2
USDC.e
DISABLED
3
LINK
DISABLED
4
WBTC
DISABLED
5
USDT
DISABLED
6
GLP
1
7
ARB
DISABLED
8
magicGLP
DISABLED
9
plvGLP
1
10
jUSDC
3 (can only have USDC as debt; no other collateral assets are allowed)
11
PT-GLP (Mar 2024)
1
12
UNI
DISABLED
13
MIM
DISABLED
14
wstETH
DISABLED
15
rETH
DISABLED
16
YT-GLP (Mar 2024)
2 (can only have WETH, DAI, USDC, USDT, WBTC, and MIM debt)
17
USDC
DISABLED
18
GRAIL
DISABLED
19
MAGIC
DISABLED
20
DPX
DISABLED
21
PENDLE
DISABLED
22
PT-rETH (Jun 2025)
1
23
PT-wstETH (Jun 2024)
1
24
PT-wstETH (Jun 2025)
1
25
26
27
You can check this table is correct and up-to-date by visiting DolomiteMargin on Arbiscan, clicking Read Contract, selecting the getMarketTokenAddress function and plugging in the corresponding marketId into the input field. Click on the resulting address and on the page whose address you are directed to, check that the contract name contains WrappedTokenUserVaultFactory.

Assets with Forced Expiration

Dolomite can enforce an expiration timestamp for any positions that are opened with an Isolation Mode asset with this setting toggled. This feature is essential to preserve the health and solvency of markets that have a maturity. For example, Pendle's YT assets decay toward a value of 0 as they approach maturity. Thus, having an expiration ensures all positions with Pendle's YT tokens can be closed before they are liquidated due to their price declining toward 0.

Arbitrum One

Market ID
Symbol
Forcefully Expired?
0
WETH
N/A
1
DAI
N/A
2
USDC.e
N/A
3
LINK
N/A
4
WBTC
N/A
5
USDT
N/A
6
GLP
FALSE
7
ARB
N/A
8
magicGLP
N/A
9
plvGLP
FALSE
10
jUSDC
FALSE
11
PT-GLP (Mar 2024)
FALSE
12
UNI
N/A
13
MIM
N/A
14
wstETH
N/A
15
rETH
N/A
16
YT-GLP (Mar 2024)
TRUE; Maximum position duration is the lesser of 4 weeks OR 1 week until maturity (Thu Mar 28 2024 00:00:00 GMT; 1711584000 unix timestamp)
17
USDC
N/A
18
GRAIL
N/A
19
MAGIC
N/A
20
DPX
N/A
21
PENDLE
N/A
22
PT-rETH (Jun 2025)
FALSE
23
PT-wstETH (Jun 2024)
FALSE
24
PT-wstETH (Jun 2025)
FALSE

Only EOA

Dolomite can whitelist what types of users can interact with certain Isolation Mode assets. There may be use cases for an asset only being accessible to real users (externally-owned-accounts (EOAs), smart contract wallets, or some other category that makes sense).
If this protective mode is enabled, only users that meet the criteria can deposit, withdraw, borrow, or otherwise use that particular asset in Dolomite. The table below denotes which assets are only accessible via an EOA.

Arbitrum One

Market ID
Symbol
Only EOA?
0
WETH
N/A
1
DAI
N/A
2
USDC.e
N/A
3
LINK
N/A
4
WBTC
N/A
5
USDT
N/A
6
GLP
FALSE
7
ARB
N/A
8
magicGLP
N/A
9
plvGLP
FALSE
10
jUSDC
TRUE
11
PT-GLP (Mar 2024)
FALSE
12
UNI
N/A
13
MIM
N/A
14
wstETH
N/A
15
rETH
N/A
16
YT-GLP (Mar 2024)
FALSE
17
USDC
N/A
18
GRAIL
N/A
19
MAGIC
N/A
20
DPX
N/A
21
PENDLE
N/A
22
PT-rETH (Jun 2025)
FALSE
23
PT-wstETH (Jun 2024)
FALSE
24
PT-wstETH (Jun 2025)
FALSE

Pause Sentinel

Dolomite offers a unique Pause Sentinel to reduce contamination risk between assets if there's an issue with a particular listed asset on Dolomite. If external redemptions are ever made unavailable, are paused, etc. Dolomite can dynamically disable borrowing, disable increasing position size, or more for, but only for the paused asset and its respective positions.
This breakthrough enables Dolomite to isolate technical risk and potential black swans between external integrations to reduce spillover between collateral assets on Dolomite. Let's walk through an example:
Suppose you have a position open with jUSDC borrowing USDC as debt. If Jones DAO activates their Emergency Pause functionality, users of jUSDC would be unable to redeem for USDC. This would put massive strain on Dolomite while the situation resolves, resulting in users ramping up their USDC debt as a way to "exit" their jUSDC position while Jones DAO's system is paused. Dolomite's Pause Sentinel is able to disable increasing debt involving jUSDC and automatically moves the jUSDC market into downsize only mode - enforcing users can only pay back loans. Meanwhile, a user taking out a loan against GLP collateral is unaffected by the jUSDC market being paused!
The table below denotes which assets have the Pause Sentinel active:

Arbitrum One

Market ID
Symbol
Pause Sentinel Trigger
0
WETH
N/A
1
DAI
N/A
2
USDC.e
N/A
3
LINK
N/A
4
WBTC
N/A
5
USDT