Liquidity depth per major asset
Dolomite's assessment for RD-F-065 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Major blue-chip assets (ETH, WBTC, USDC, USDT) have adequate Chainlink-backed DEX liquidity. Long-tail isolation-mode assets present severe depth mismatch. WLFI: Chaos Labs found Dolomite holds WLFI collateral worth more than 4x the total WLFI available on Binance, making orderly liquidation at scale structurally infeasible. Pattern extends to other long-tail assets (GM tokens, PoL tokens) though at smaller scales. The protocol accepts illiquid collateral at significant scale relative to available market depth.
Sources #
- DocsDolomite Risk Management DocumentationDolomite risk-management docs: isolation mode levels 1-3 for long-tail assets; 19 Level 2/3 assets on Arbitrum including GM tokens and GLV tokensretrieved 2026-05-16
- Chaos Labs Exposes $1B DeFi Loop Risk on DolomiteChaos Labs: WLFI collateral on Dolomite is more than four times the total WLFI available on Binance, making orderly liquidation structurally infeasibleretrieved 2026-05-16
Methodology #
Measure on-chain liquidity depth for protocol-held assets at 2% and 5% price impact in USD.
See the full factor methodology and distribution across all protocols →