Dolomite Decentralized Exchange to Use dYdX for Margin Trading and Stop Loss Feature Integration

Dolomite Decentralized Exchange will add stop loss and margin trading functions within its ecosystem. The Non-custodial digital asset exchange is set to leverage the dYdX protocol to implement the two features.

As it stands, Dolomite’s fundamental model is built on the Loopring protocol and the new dYdX will supplement margin trading features set to be integrated. The exchange’s clients will benefit from this move given the 5x leverage on a long position and 4x on a short position embedded in the new design. In addition, Dolomite’s access to liquidity will increase according to the firm;

“Dolomite is building off of the dYdX margin lending protocol, giving it access to over $30 million in lending liquidity.”

The dYdX Protocol Advantage!

Corey Caplan, the CEO of Dolomite, has recently explained that dYdX protocol will enable them to integrate more trading platforms very easily. This will, in turn, improve the Dolomite ecosystem and assist the firm to capture relevant data from their clients. He added that dYdX modular infrastructure will give its users wider trading margins compared to their competitors while staking less collateral.

The Dolomite CEO further noted that they are the pioneering exchange to integrate dYdX protocol and will also leverage it for a stop-loss function. Clients operating within their decentralized exchange are therefore protected from the risk of having all their funds wiped out by dYdX 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.”

DYdX protocol is also allegedly working with the Decentralized Autonomous Organization, DAI coin parent firm, providing its lending protocol service. Caplan said that if indeed the two have partnered then it’s good in terms of liquidity for both players.

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Author: Lujan Odera

Seed CX Has Started Testing Physically-Settled Swap Contracts With Bitcoin

Seed CX, a Bitcoin (BTC) derivatives firm, has recently decided to start the tests with its new margin swap products. According to the company’s press release, the matching platform os swapping products can already be tested by the clients via the Seed SEF platform.

The CEO of Seed CX, Edward Woodford, affirmed that this initial period of testing will be used in order to allow people to get in touch with the offerings and determine what is working or not to deliver a great product later. He affirms that the product will probably be officially launched within the next three months.

From the technological point of view, the company is ready for the launch and only requires the predicted time for testing. The only possible reason for delays can be regulators, which can be considerably more unpredictable.

Brian Liston, the president of the crypto derivatives company, affirmed that all Bitcoin of the new platform will be physically-settled and that the company is pretty excited to have such an interesting offering for investors. According to him, these are the final steps in order to get the product ready and out of the door, but some more beta testing is required first.

Seed CX Will Have Competition

Seed CX may be getting its products ready, but the company is far from being the only one to do it. Several other companies are focusing on the same niche. Blade (which was backed by Coinbase), ErisX and LedgerX are all getting ready to offer similar products.

Most of them are still getting services ready, too, so the ones to take the lead will probably get an edge on the competition.

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Author: Gabriel Machado