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Risk Mitigation
Dolomite has an expressive system for managing the protocol's risks.
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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.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.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.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.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.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%.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.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 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.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.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.
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 |
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.
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 |
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:
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 |