Non-custodial decentralized exchange (DEX) Dolomite announced that on Nov. 4 it will add a margin trading with stop-loss orders.
The company explained in a press release shared with Cointelegraph that — while its current exchange is based on the Loopring protocol — its margin trading feature will be built on the dYdX protocol.
Long and short positions with stop orders
Per the release, the platform’s users will be able to take long positions with up to 5x leverage and short positions with up to 4x leverage from their wallets. Furthermore, the firm also claims:
A trustless margin trading protocol
Dolomite co-founder and CEO Corey Caplan explained in an exclusive comment to Cointelegraph that dYdX protocol allows the platform to “seamlessly work with any exchange to open and close positions” and is designed in a modular fashion. He said that this brings several advantages to platforms make use of it:
Caplan also claimed that his platform is the first one to integrate with dYdX. Lastly, he explained that the opportunity to feature limit orders on the DEX arose thanks to the modular design of the protocol in question:
Given the apparent relationship between dXdY and decentralized stablecoin DAI (and the decentralized autonomous organization behind it MakerDAO), Cointelegraph asked Caplan to illustrate the details of this collaboration. He admitted that he does not know the details, but the two systems are working together: