SOLUTION 39: THE "ON CHAIN CREDIT DELEGATION" SOLUTION WITH $DOLO
THE PROBLEM OF UNUSED BORROWING POWER
Many large, capital rich users in DeFi have a huge amount of borrowing power that they do not use. This is inefficient capital. A powerful future solution that could be built on the Dolomite platform is **on chain credit delegation**, a feature that would be governed by the $DOLO community.
A NEW WAY TO UNLOCK LIQUIDITY
In this model, a user with a large, over collateralized position on @Dolomite could "delegate" a portion of their unused borrowing power to another, trusted wallet address. For example, a large fund could delegate a $1 million credit line to one of its traders. The trader could then borrow up to $1 million from the platform, with the loan being secured by the fund's master collateral. This is a common practice in traditional finance, and bringing it on chain would unlock immense capital efficiency. The platform governed by the $DOLO asset is the perfect place to build this kind of sophisticated, professional grade financial tool. The #dolo digital asset is the key to this future.