Non-custodial decentralized change (DEX) Dolomite introduced that on Nov. four it’s going to add a margin buying and selling with stop-loss orders.
The corporate defined in a press launch shared with Cointelegraph that — whereas its present change relies on the Loopring protocol — its margin buying and selling function can be constructed on the dYdX protocol.
Lengthy and brief positions with cease orders
Per the discharge, the platform’s customers can be ready to take lengthy positions with up to 5x leverage and brief positions with up to 4x leverage from their wallets. Moreover, the agency additionally claims:
“Dolomite can even be one of many first decentralized exchanges to supply leveraged restrict order trades, permitting a leveraged commerce to fill solely at a sure worth. Dolomite is constructing off of the dYdX margin lending protocol, giving it entry to over $30 million in lending liquidity.”
A trustless margin buying and selling protocol
Dolomite co-founder and CEO Corey Caplan defined in an unique remark to Cointelegraph that dYdX protocol permits the platform to “seamlessly work with any change to open and shut positions” and is designed in a modular vogue. He mentioned that this brings a number of benefits to platforms make use of it:
“This permits Dolomite to seize the commerce quantity from customers opening/closing positions. Customers are additionally ready to keep a decrease collateralization as compared with different margin lending protocols, so customers can commerce with extra leverage.”
Caplan additionally claimed that his platform is the primary one to combine with dYdX. Lastly, he defined that the chance to function restrict orders on the DEX arose thanks to the modular design of the protocol in query:
“Dolomite can also be uniquely providing Margin Safety which is a stop-loss operate that can shut your positions on Dolomite earlier than they’re liquidated by dYdX. This protects customers from shedding everything of their margin deposit once they open a place. We had been solely ready to add this function in due to the modularity of their protocol.”
Given the obvious relationship between dXdY and decentralized stablecoin DAI (and the decentralized autonomous group behind it MakerDAO), Cointelegraph requested Caplan to illustrate the main points of this collaboration. He admitted that he doesn’t know the main points, however the two programs are working collectively:
“We’re not sure of their relationship. Nevertheless it is possible good contemplating they’re one of many greatest lending protocols surrounding DAI within the ecosystem. DAI can also be central to dYdX’s lending liquidity and commerce quantity.”
As Cointelegraph reported in late October, entrepreneur and crypto advocate John McAfee has argued for the significance of stablecoins for DEX adoption.