British Virgin Islands, British Virgin Islands, August eighth, 2023, Chainwire
Dolomite, the lending protocol for environment friendly capital deployment, has introduced ⚡Zap, a one-step collateral resolution. This primary-of-its-kind function allows DeFi customers to extend their collateral in opposition to leveraged belongings on demand. By eliminating a number of hops usually related to the method, ⚡Zap is designed to save lots of time whereas rising out there liquidity.
Customers on the Arbitrum community have the power to borrow in opposition to a variety of belongings utilizing Dolomite’s superior lending protocol, usually together with belongings not discovered on different lending protocols. This consists of borrowing in opposition to yield-generating belongings similar to GMX’s “GLP” liquidity token. Customers generally take part in “looping” to maximise their yield, a course of that entails a number of steps. For instance, to acquire 5x leverage on GLP, a consumer should deposit GLP as collateral, borrow in opposition to it, withdraw from Dolomite, acquire extra GLP, and repeat the method a number of occasions.
This inefficiency is as a result of most borrowing restrict that restricts the quantity of capital that may be borrowed in order that the consumer is all the time overcollateralized. Whereas this provision is in place for the security of lenders, there are events when skilled customers might want to borrow greater than the worth of their collateral. Dolomite’s new ⚡Zap function permits this to be achieved in a single step, delivering larger effectivity by eradicating the necessity to make a number of transactions.
Along with eliminating pointless steps, ⚡Zap delivers different advantages. These embody the power to repay debt utilizing collateral relatively than having to unwind a borrow place by reversing the looping course of. Moreover, customers will be capable of add collateral within the type of belongings they aren’t at the moment holding. This function might be carried out with the help of a DEX aggregator, making certain that customers aren’t constrained by the liquidity out there on Dolomite.
The introduction of ⚡Zap, scheduled to go dwell on August 2nd, will add comfort for Arbitrum customers whereas additional extending the capabilities of DeFi cash markets. Permitting customers to leverage or hedge complicated belongings in a single click on supplies larger utility and augments the composability that’s integral to decentralized finance.
The ⚡Zap course of is accomplished in a single transaction that takes place in the identical block, making certain the consumer’s place stays sufficiently collateralized. ⚡Zap will pave the best way for additional merchandise that Dolomite is growing primarily based upon this functionality whereas cementing its place as essentially the most modern lending protocol on Arbitrum.
About Dolomite
Dolomite permits customers to unlock dormant capital by smarter borrowing and lending. It allows smarter asset deployment via highly effective integrations throughout the DeFi ecosystem. Dolomite’s superior structure helps separate borrow positions from a single pockets, every with a definite threat profile. Its distinctive design permits for a broad vary of yield-bearing belongings for use as collateral, serving to customers earn rewards whereas borrowing in opposition to these belongings.
Be taught extra: https://dolomite.io/
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