Deep Dive
1. Security Incident Compensation (21 August 2025)
Overview: Dolomite automated compensation for users affected by a July 2025 security incident involving GLP vaults, replacing complex token claims with direct USDC payouts.
The update introduced a snapshot-based eligibility system, converting GLP holdings to USD values at the incident block. Compensation excluded sub-$1 balances to align with GMX’s protocol. Funds are distributed via Dolomite’s multisig, minimizing user effort.
What this means: This is bullish for DOLO because it reinforces trust in crisis management, reducing user friction during reimbursements. (Source)
2. Interest Rate Model Update (24 July 2025)
Overview: Adjusted dual-slope rate curves to lower borrowing costs during high utilization, capping max rates at 100% usage.
The model now applies gentler rate increases below 90% utilization and softer spikes above this threshold. For example, ETH borrow rates at 100% utilization dropped by ~15%, reducing liquidation risks.
What this means: This is neutral for DOLO as it balances lower costs for borrowers (potentially boosting activity) with slightly reduced incentives for lenders. (Source)
3. Chainlink CCIP Integration (11 July 2025)
Overview: Integrated Chainlink’s cross-chain protocol to enable secure asset transfers between Ethereum, Arbitrum, and Berachain.
The upgrade minimizes liquidity fragmentation by allowing assets like USD1 stablecoin to move seamlessly across chains while retaining yield-earning capabilities.
What this means: This is bullish for DOLO because cross-chain composability could attract more institutional capital and DeFi strategies. (Source)
Conclusion
Dolomite’s recent updates prioritize user protection (compensation automation), sustainable borrowing markets (rate caps), and cross-chain scalability (CCIP). Together, they position DOLO as a risk-aware, multi-chain DeFi hub. How might these upgrades impact Dolomite’s TVL as cross-chain activity grows?