DEX Dolomite to Add Trading On Margin With Stop-Loss Orders

Non-custodial <a href="https://en.wikipedia.org/wiki/Decentralized_exchange">decentralized exchange</a> (DEX) Dolomite made an exclusive statement in an announcement. It said that on Nov 4 it will launch the margin trading stop-loss orders.

The company in press release explained its margin trading feature will be completely developed on the dYdX protocol. While the company's current exchange is built on the looping protocol.

As per the release, the platform will allow its users in taking long positions with up to 5X leverage and the short positions with up to 4X leverage from their wallet. Moreover, the company states:
“Dolomite will also be one of the first decentralized exchanges to offer leveraged limit order trades, allowing a leveraged trade to fill only at a certain price. Dolomite is building off of the dYdX margin lending protocol, giving it access to over $30 million in lending liquidity.”
<h3>An Unreliable Margin Trading Protocol</h3>
CEO and co-establisher of Dolomite, Corey Caplan made an exclusive comment to the source. In the comment, he said dYdX protocol enables the platform to" seamlessly work with any change to open and close positions". He said it is designed in a modular manner. Further, he said, this gives several advantages to the platforms:
“This allows Dolomite to capture the trade volume from users' opening/closing positions. Users are also able to maintain lower collateralization in comparison with other margin lending protocols, so users can trade with more leverage.”

Caplan furthermore claimed this platform is the first that is implemented on dYdX protocol. He elaborated that the opportunity to feature limit orders on the DEX arose thanks to the modular protocol design:
“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.”

Considering the apparent relationship between dYdX and <a href="https://www.cryptoknowmics.com/crypto/dai-and-tether-adoptions-in-visa-card-and-e-c9mmerce-organization/">decentralized stable coin DAI</a>, the source asked Caplan to explain the details of this association. He acknowledged that he does not know the details but the two systems are serving together:
"We're unsure of their relationship. However, it's likely good considering they are one of the biggest lending protocols surrounding DAI in the ecosystem. DAI is also central to dYdX's lending liquidity and trade volume.”

Reportedly, at the end of October, Businessman and crypto supporter John McAfee has debated for the significance of stable coin for DEX embracement.

DEX Dolomite to Add Trading On Margin With Stop-Loss Orders

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