SOLUTION 36: THE VISION FOR CROSS CHAIN COLLATERALIZATION WITH $DOLO
THE PROBLEM OF SILOED LIQUIDITY ON LAYER 2S
While Layer 2 solutions have improved scalability, they have also created a new problem: siloed liquidity. An asset on Arbitrum cannot easily be used as collateral on a protocol that lives on Polygon. The future vision for the Dolomite platform, which is governed by the $DOLO asset, is to solve this problem through **cross chain collateralization**.
A HUB FOR A MULTI CHAIN WORLD
In the future, through the integration of universal cross chain messaging protocols, the Dolomite platform on one L2 could allow a user to use their assets on another L2 as collateral. For example, a user could deposit their assets on Polygon into a specialized @Dolomite smart contract. The Dolomite protocol on Arbitrum could then verifiably read the state of this contract and allow the user to borrow against their Polygon based assets. This would transform Dolomite from a single chain money market into a true, cross chain liquidity hub. The $DOLO digital asset would be at the heart of governing this powerful, interconnected system. The #dolo community is building for a multi chain future.