Yield Breakdown on Dolomite
Dolomite, a DeFi lending platform, allows users to deposit USD1, a dollar-pegged stablecoin fully backed by U.S. Treasuries and cash equivalents. This enables users to earn interest while simultaneously allowing others to borrow. The headline 8.07% APY is derived from several sources: a base lending rate of 0.25%, which fluctuates based on supply and demand dynamics akin to traditional savings accounts but with instant on-chain settlement; a 0.68% oDOLO yield, which rewards holders of Dolomite’s governance token; and a significant 7.14% in WLFI rewards, which incentivizes early liquidity providers with World Liberty Financial tokens. These WLFI rewards are claimable through Merkl’s distribution system.
For instance, a small business owner in Peru could deposit $10,000 in USD1 on Dolomite. At an 8.07% APY, this would generate approximately $807 annually, a rate significantly higher than typical bank interest rates, while maintaining the liquidity of the funds for quick withdrawal.
USD1 on Dolomite earns 8.07% APY.
→ Lending APY: 0.25%
→ oDOLO APY: 0.68%
→ $WLFI rewards APY: 7.14%
+ USD1 pointsClaim @worldlibertyfi rewards on @merkl_xyz. pic.twitter.com/Rg1T68oi0x
— Dolomite 🏔️ (@Dolomite_io) January 19, 2026
This development coincides with the surge in Solana's DeFi ecosystem. Platforms like Dolomite leverage the chain's low transaction fees to offer competitive yields, especially as Solana experienced approximately $15 billion in stablecoin inflows last month. A prominent trend is the growth of yield-bearing stablecoins; USD1's $3.4 billion supply indicates a strong demand for "productive" dollars that generate passive income, contrasting with idle stablecoin holdings like USDT.
More About DeFi Lending
Kamino Lending Vaults on Solana have now generated over $10 million in yields for their users, signifying the DeFi application's rapid ascent as a preferred platform for consistent returns. These automated strategies are distributed across more than 15 vaults, encompass six key assets, and are managed by seven professional vault managers. They provide secure, open-source lending yields that are verified on-chain, making sophisticated portfolio management accessible to everyday users without the need for constant monitoring.
Kamino Lending Vaults have now generated over $10M for users.
Across 15+ vaults, 6 assets, and 7 vault managers, Kamino delivers secure, open source, and verified lending yields on Solana, expanding DeFi access to transparent, professionally managed strategies at scale. pic.twitter.com/8JKR7Y8ti8
— Kamino (@kamino) January 8, 2026
This achievement underscores Solana's advantages in the DeFi space, where low fees and high transaction speeds allow vaults to optimize lending across various protocols, such as marginfi and MarginX, thereby compounding earnings through dynamic asset allocation. For individuals new to DeFi, these vaults function as intelligent savings accounts that lend user cryptocurrency to borrowers while autonomously seeking the best available rates. All these operations are transparent and auditable by the public.