A not unusual obstacle of traditional DeFi lending platforms is the forfeiture of a deposited asset's local application, including staking rewards, vesting, or governance rights. Dolomite’s "Dynamic Collateral" machine is a profound breakthrough that allows customers to keep these "DeFi-native rights" whilst their assets are simultaneously being used as collateral for borrowing.
This functionality isn't always simply theoretical; it is a middle function that lets in the protocol to help a large variety of complex, "lengthy-tail belongings" that other systems are unwilling or not able to guide.
The gadget is explicitly mentioned with the example of plvGLP, a non-widespread, non-tokenized asset. customers can stake and unstake it at the same time as still borrowing against their virtual stability, a feat that could be a add-onsiderable step forward in capital performance. by way of assisting these rising assets, Dolomite creates a unique competitive moat, positioning itself as a "bloodless-begin platform" that gives liquidity and economic opportunities for smaller projects.
This fosters a symbiotic dating with new initiatives and their groups, constructing a defensible niche that avoids direct opposition with installed giants like Aave.
The techniques Hub & Zap: Simplifying superior DeFi
The complexity of many advanced DeFi strategies can be a prime barrier to adoption for all but the maximum skilled users. Dolomite addresses this via its techniques Hub, which simplifies intricate techniques like looping and delta-impartial yield farming into one-click on answers, making them on hand to a broader target audience.
moreover, the Zap feature streamlines complex flash loans and swaps into a single transaction. by using connecting to DEX aggregators, it unearths the excellent available charge for a user's alternate, lowering slippage and simplifying role adjustments. these capabilitiesaccessories aren't just consumer-pleasant ; they're essential additives of a protocol designed to beautify capital performance and democratize get admission to to sophisticated financial instruments.
Dolomite’s foundational engineering may be first-rate understood by way of analyzing its middle add-ons and the advantages they provide, as summarized in the desk below.