Nexo

We’re Giving out 10 BTC in Rewards until the Bitcoin Halving

Learn More

Dolomite Becomes First Arbitrum Lending Protocol to Support GM Tokens for GMX V2

Dolomite Becomes First Arbitrum Lending Protocol to Support GM Tokens for GMX V2

Share this article

British Virgin Islands, British Virgin Islands, March 28th, 2024, Chainwire

DeFi lending platform Dolomite has announced the integration of GM tokens. The tokens, used to denote liquidity in GMX V2, can now be deposited into Dolomite and used as collateral for borrowing. Dolomite is the first lending platform to add support for GM tokens.

Despite launching V2 of its protocol in August, GMX’s liquidity tokens, known as GM, have yet to be widely integrated by Arbitrum protocols. This is due to the technical complexity involved in handling these new assets, rendering protocols unable to quickly deploy derivative assets despite the demand.

In addition to being the first lending platform to launch support for GM tokens, Dolomite provides a deeper level of support than other protocols. Dolomite users can easily hedge or leverage their GM positions and GM tokens will also be supported by Dolomite’s Zap feature, enabling users to seamlessly swap into and out of pools to quickly deploy any strategy they wish.

Due to the structure of GM tokens, a two-step process is required to liquidate or unwind them, a capability that most lending platforms do not possess. To support GM tokens, Dolomite has created a unique intent-based architecture for unwinding these types of assets. This allows Dolomite to support GM tokens without needing centralized market makers to perform liquidations or increasing smart contract risk.

To ensure optimal integration of GM tokens, and attest to the Dolomite Protocol’s enduring security, Guardian Audits undertook an audit of the new system and integration. Having previously audited GMX V2, Guardian Audits’ experience in the architecture of the GMX ecosystem was brought to bear in facilitating this process.

The addition of GM tokens to Dolomite will expand the platform’s utility and provide greater options for efficient capital utilization. It provides GMX users with an additional use case for their GM tokens and unlocks possibilities for generating yield across the Arbitrum ecosystem.

About Dolomite

Dolomite is a next-generation decentralized money market protocol and DEX that offers broad token support and capital efficiency with its virtual liquidity system. Operating on Arbitrum, Dolomite combines the strengths of a DEX and lending protocol with a capital-efficient and highly modular DeFi protocol. Dolomite is capable of offering over-collateralized loans, margin trading, spot trading and other financial instruments.

Learn more: https://dolomite.io/

Contact

PR
MarketAcross
[email protected]

Share this article

Loading...