Dolomite Decentralized Exchange to Use dYdX for Margin Trading and Stop Loss Feature Integration
Dolomite Decentralized Exchange will add stop loss and margin trading functions within its ecosystem. The Non-custodial digital asset exchange is set to leverage the dYdX protocol to implement the two features.
As it stands, Dolomite’s fundamental model is built on the Loopring protocol and the new dYdX will supplement margin trading features set to be integrated. The exchange’s clients will benefit from this move given the 5x leverage on a long position and 4x on a short position embedded in the new design. In addition, Dolomite’s access to liquidity will increase according to the firm;
“Dolomite is building off of the dYdX margin lending protocol, giving it access to over $30 million in lending liquidity.”
The dYdX Protocol Advantage!
Corey Caplan, the CEO of Dolomite, has recently explained that dYdX protocol will enable them to integrate more trading platforms very easily. This will, in turn, improve the Dolomite ecosystem and assist the firm to capture relevant data from their clients. He added that dYdX modular infrastructure will give its users wider trading margins compared to their competitors while staking less collateral.
The Dolomite CEO further noted that they are the pioneering exchange to integrate dYdX protocol and will also leverage it for a stop-loss function. Clients operating within their decentralized exchange are therefore protected from the risk of having all their funds wiped out by dYdX Protocol;
“Dolomite is also uniquely offering Margin Protection which is a stop-loss function that will close your positions on Dolomite before they are liquidated by dYdX. This saves users from losing the entirety of their margin deposit when they open a position. We were only able to add this feature in because of the modularity of their protocol.”
DYdX protocol is also allegedly working with the Decentralized Autonomous Organization, DAI coin parent firm, providing its lending protocol service. Caplan said that if indeed the two have partnered then it’s good in terms of liquidity for both players.