Dolomite Adds $100 Million in Bitcoin-Backed BTCcx Collateral Through Concrete
Dolomite has added approximately $100 million in Bitcoin-backed BTCcx collateral through Concrete, expanding an existing arrangement that allows the firm to borrow against Bitcoin held in custody rather than selling the underlying asset. The lending protocol announced on October 19 that borrowing against the collateral was already live, with the Bitcoin remaining in custody at BitGo.
The arrangement uses BTCcx tokens issued by Concrete on Ethereum as representations of Bitcoin held in qualified custody. According to Concrete, the tokens are backed one-to-one by Bitcoin. However, the structure is not an open lending market available to every Bitcoin holder: Dolomite's documentation states that only Concrete can issue the assets and operate with them on the protocol.
Dolomite BTCcx Collateral Reaches $100 Million
Dolomite's Ethereum market dashboard showed $100.08 million in BTCcx supplied in the October 19 snapshot reviewed for the report, broadly matching the partners' announcement of approximately $100 million in collateral.
Separately, holder records on Etherscan showed approximately 1,221.15 BTCcx held by Dolomite's margin contract. These figures describe the collateral position, not the amount of debt outstanding against it. BTCcx itself cannot be borrowed under the documented structure, and Dolomite's announcement did not disclose how much Concrete had borrowed using the collateral.
Under the arrangement, Concrete issues BTCcx on Ethereum, supplies the tokens to Dolomite and manages the associated borrowing position. The borrowed funds are generally deployed into yield-bearing strategies that can be unwound to repay the debt.
If collateral prices fall below acceptable thresholds, Concrete is responsible for making partial repayments to restore the position's health. Dolomite's documentation says the structure uses a Chainlink price feed for the underlying asset.
Bitcoin Custody Creates a Different Liquidation Process
The use of custodied Bitcoin introduces an additional settlement step if a position must be liquidated. Unlike collateral that can be transferred and sold entirely onchain, BTCcx requires an offchain custody redemption process to recover the underlying assets.
According to Dolomite's documentation, liquidation proceeds therefore cannot be returned to the protocol to repay debt within the same onchain transaction. Instead, the process involves a temporary, market-specific claim token representing the collateral while settlement takes place.
The underlying asset must then pass through offchain redemption, after which the proceeds return onchain to repay the outstanding debt and the temporary claim token is closed. Dolomite's documentation still lists the settlement contracts as “Coming soon,” indicating that this part of the documented infrastructure had not yet been presented as available.
The arrangement also introduces timing considerations. Because the Bitcoin remains in custody while redemption is pending, market prices may change before the proceeds become available to repay the loan.
Concrete Expands an Existing Dolomite Arrangement
The BTCcx deployment builds on an existing relationship between Dolomite and Concrete. The protocol already supports WLFIcx, another asset issued on Ethereum by Concrete and backed by assets held in BitGo custody.
Dolomite's dashboard showed $108.65 million in WLFIcx supplied in the same October 19 snapshot. Together, the BTCcx and WLFIcx positions illustrate Concrete's use of tokenized representations of custodied assets within Dolomite's lending infrastructure.
The disclosed figures establish the amount of BTCcx supplied to the protocol, but they do not reveal Concrete's outstanding borrowing, the performance of its yield strategies or the potential financial impact of a liquidation. Those details were not provided in the announcement.
source: thedefiant
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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