Summary
Dolomite is a decentralized money market and trading protocol originally launched on Ethereum in 2019 and migrated to Arbitrum in 2022. The protocol suffered a $1.8 million exploit in March 2024 due to a reentrancy vulnerability in a legacy 2019 Ethereum contract. The platform drew significant controversy in 2026 when Trump-affiliated World Liberty Financial (WLFI) used 5 billion WLFI tokens as collateral to borrow $75 million on Dolomite — a platform co-founded by WLFI's own chief technology officer — driving USD1 pool utilization to 93% and trapping ordinary depositors.
Connected Entities
1 entities- + 2 more
Timeline(12 events)
2019-01-01
Dolomite originally launched on Ethereum mainnet as a decentralized exchange; vulnerable legacy contract deployed.
2022-10-01
Dolomite migrated to Arbitrum One, phasing out Ethereum version while legacy contracts remained active on-chain.
2023-11-01
Arbitrum community filed complaint alleging Dolomite violated STIP program rules via oARB mechanism; resolved after multisig intervention and mechanism modification.
2024-03-20
Dolomite's deprecated 2019 Ethereum contract exploited for approximately $1.8 million in USDC via reentrancy bypass through TradeManager contract; stolen funds moved through Tornado Cash.
2025-01-06
Snapshot taken for DOLO token airdrop eligibility.
2025-08-31
DOLO token reached all-time high of $0.3671.
2025-09-01
Dolomite co-founder Corey Caplan announced as adviser and CTO to World Liberty Financial (WLFI).
2026-01-01
World Liberty Financial launched its DeFi lending market built on Dolomite infrastructure, boosting DOLO price temporarily.
2026-04-09
CoinDesk reported WLFI deposited 5 billion WLFI tokens on Dolomite to borrow $75 million in stablecoins, driving USD1 pool utilization to 93% and trapping depositors.
2026-04-10
WLFI token dropped 12% to record lows; WLFI team publicly defended the position and dismissed liquidation concerns as 'FUD'.
2026-04-13
WLFI minted $25 million in fresh USD1 stablecoin amid ongoing Dolomite borrowing controversy.
2026-05-14
Senator Elizabeth Warren formally urged SEC Chairman Paul Atkins to investigate whether WLFI misled investors in connection with Dolomite borrowing arrangement.
Decision Log
- hash: EpwuPQcuYroRN6aMj7utnFUMqDfadDLZbt7vT2adoQUR
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:34 AM
last updated: 5/28/2026, 5:24:17 AM
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