Dolomite Launches Margin Protocol and DEX, Offering Advanced Margin Features to the DeFi Space
Dolomite today announced the launch of its new margin protocol and DEX after more than a year of rigorous development. Dolomite’s new protocol boasts higher capital efficiency and broader asset support than existing competitors, and aims to capture valuable integrations and experienced traders with its advanced features and unique offerings.
Dolomite was founded in early 2018, before “DeFi” even existed as a term, at which time the Dolomite team was one of the first to build in the DEX space, and the first to build on the Loopring Protocol. Over the years that followed, Dolomite experienced moderate success with their initial platform, and used their domain expertise and backend infrastructure to work with several other teams in the space, assisting in the launch of several other projects. Since 2021 the team has been using the experience they’ve collected from working in the space and their love of trading to develop what they believe is a truly next generation margin protocol, which they are excited to launch today. Now backed by the blockchain venture studio Draper Goren Holm, the team believes the future of the protocol looks bright.
“Innovating and implementing advanced features for truly decentralized exchanges is exceedingly difficult,” said Alon Goren, Founding Partner of Draper Goren Holm. “The Dolomite team is one of the most experienced, talented, and knowledgeable teams that we have ever met in the space.”
Dolomite’s new protocol boasts several unique features that they believe will benefit crypto holders and traders. Thanks to the capital efficiency of the protocol’s architecture, users are able to earn in several ways at once. Assets deposited onto Dolomite will earn margin lending interest by default, but those same assets can be deposited into a Dolomite liquidity pool to simultaneously earn margin lending interest and liquidity pool fees. Additionally, those assets in the liquidity pool can eventually be used as collateral for yield farming, allowing users to earn from three sources simultaneously that they otherwise would have had to choose between.
Those interested in trading will benefit from the Dolomite Protocol’s support for a broad set of collateral assets. For traders, this means being able to margin trade any listed asset on the platform against another other listed asset. This enables traders to not only open more common margin trades, such as longing ETH against USDC, but also margin trade popular assets that aren’t commonly available for margin trading, such as opening a LINK margin long against GMX, using LINK as collateral. This can even extend to more exotic assets, anything from interest bearing tokens to tokenized real world assets. While Dolomite will be launching with a more limited list of assets, they already have the addition of many new assets in the works.
Those interested in hedging also benefit from Dolomite’s broad asset support. By using Dolomite’s borrowing capabilities, users will be able to tap into what would have otherwise been illiquid assets, such as borrowing against liquid staking LP tokens as well as interest bearing tokens. Users will also be able to collateralize each borrow position with up to 32 different assets, enabling significant flexibility for users. Dolomite’s team believes that along with benefiting users of the platform, these enhanced borrowing and hedging capabilities will attract many valuable integrations. The team has built the protocol with composability in mind, making it easy for other projects to interact with, connect to, and build on Dolomite.
“We wanted to put down a strong foundation for building a maximally decentralized and immutable protocol. Utilizing The Graph for all data indexing, Chainlink price feeds, and deploying on Arbitrum One felt like the only logical way to fulfill that vision,” said co-founder Corey Caplan.
The Dolomite team aimed to build a strong and stable tech infrastructure that will stand the test of time. The Dolomite Protocol uses Chainlink’s industry-leading and battle-tested price feeds as the backbone of its margin lending capabilities to secure the protocol’s integrity even in volatile market conditions. In order to provide the protocol’s advanced features with the fastest speed and lowest gas fees, the team has launched Dolomite on the Ethereum layer 2 Arbitrum, which the team believes has the best experience for users and the highest degree of security amongst the layer 2 landscape.
The team has a goal of steady growth and strong tech development. Over the coming weeks, the team will be announcing and releasing new features and integrations, and expects many more to come.
“We see this as just the beginning of a long journey”, explained co-founder Adam Knuckey, “we have so many exciting features and integrations on the way that we’re looking forward to sharing with the DeFi space”
The Dolomite margin DEX is currently available for users to trade and earn on desktop and mobile. You can learn more about Dolomite and get started on their platform on their website at https://dolomite.io. Those interested in diving deeper into the tech powering Dolomite can find Dolomite’s documentation at https://docs.dolomite.io. Those interested in talking with the team and being a part of the community can join the discussion on Dolomite’s social media channels on Twitter and Discord.
