Non-custodial decentralized trade (DEX) Dolomite introduced that on Nov. four it is 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 trade relies on the Loopring protocol — its margin buying and selling characteristic can be constructed on the dYdX protocol.
Lengthy and brief positions with cease orders
Per the discharge, the platform’s customers will have the ability to take lengthy positions with as much as 5x leverage and brief positions with as much as 4x leverage from their wallets. Moreover, the agency additionally claims:
“Dolomite will 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 trade to open and shut positions” and is designed in a modular style. He stated that this brings a number of benefits to platforms make use of it:
“This enables Dolomite to seize the commerce quantity from customers opening/closing positions. Customers are additionally capable of preserve 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 characteristic restrict orders on the DEX arose due to the modular design of the protocol in query:
“Dolomite can be uniquely providing Margin Safety which is a stop-loss perform that may shut your positions on Dolomite earlier than they’re liquidated by dYdX. This protects customers from dropping the whole lot of their margin deposit once they open a place. We had been solely ready so as to add this characteristic 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 as an example the small print of this collaboration. He admitted that he doesn’t know the small print, however the two methods are working collectively:
“We’re uncertain of their relationship. Nonetheless it is probably good contemplating they’re one of many greatest lending protocols surrounding DAI within the ecosystem. DAI can 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.
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