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anchored·2rK46w…3cvySummary
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
Dolomite originally launched on Ethereum mainnet as a decentralized exchange; vulnerable legacy contract deployed.
October 2022
Dolomite migrated to Arbitrum One, phasing out Ethereum version while legacy contracts remained active on-chain.
November 2023
Arbitrum community filed complaint alleging Dolomite violated STIP program rules via oARB mechanism; resolved after multisig intervention and mechanism modification.
20 March 2024
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.
6 January 2025
Snapshot taken for DOLO token airdrop eligibility.
31 August 2025
DOLO token reached all-time high of $0.3671.
September 2025
Dolomite co-founder Corey Caplan announced as adviser and CTO to World Liberty Financial (WLFI).
2026
World Liberty Financial launched its DeFi lending market built on Dolomite infrastructure, boosting DOLO price temporarily.
9 April 2026
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.
10 April 2026
WLFI token dropped 12% to record lows; WLFI team publicly defended the position and dismissed liquidation concerns as 'FUD'.
13 April 2026
WLFI minted $25 million in fresh USD1 stablecoin amid ongoing Dolomite borrowing controversy.
14 May 2026
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 (1 event). 22 of 23 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:34 AM
last updated: 8/30/2026, 1:16:28 AM
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