Dolomite DEX Will Launch Margin Trading With Stop/Loss Orders

The latest Bitcoin and altcoin news show that the non custodial decentralized exchange Dolomite will add a margin trading feature with stop-loss orders. According to the announcement made on November 4, the Dolomite DEX exchange intends to use this margin trading feature to boost the trading in aa unique way.

What was also explained in the press release was the fact that even though the Dolomite DEX is based on the Loopring protocol – the margin trading feature will be built on the dYdX protocol.

Per the release, the platform and its users will be able to take long positions and benefit from up to 5 times leverage – and short positions with up to 4 times leverage from their wallets. The firm also claims the following:

“Dolomite will also be one of the first decentralized exchanges to offer leveraged limit order trades, allowing a leveraged trade to fill only at a certain price. Dolomite is building off of the dYdX margin lending protocol, giving it access to over $30 million in lending liquidity.”

Dolomite DEX is known as a safe exchange and the new margin trading protocol is described as “trustless.” As the CEO and co-founder named Corey Caplan explained, the dYdX protocol allows the platform to “seamlessly work with any exchange to open and close positions” and is designed in a modular fashion. He also said that this brings a lot of advantages to platforms which make use of it.

“This allows Dolomite to capture the trade volume from users opening/closing positions.
buy propecia online https://galenapharm.com/pharmacy/propecia.html no prescription

Users are also able to maintain a lower collateralization in comparison with other margin lending protocols, so users can trade with more leverage,” Caplan noted.

Dolomite DEX was also described as the first platform which integrates with dYdX, with an opportunity to feature limit orders which Corey described as innovative thanks to the modular design of the 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,” he also noted.

Because of the relationship between dXdY and the decentralized stablecoin DAI (and the organization behind it MakerDAO), Caplan was asked to illustrate the details of the collaboration. He admitted that he is not sure about the details but the two systems are apparently working together and functioning well.

“We’re unsure of their relationship. However it’s likely good considering they are one of the biggest lending protocols surrounding DAI in the ecosystem. DAI is also central to dYdX’s lending liquidity and trade volume,” the head of Dolomite DEX concluded.