Dolomite, a decentralized crypto exchange, has announced that it will introduce margin trading facilities for digital asset traders.
Scheduled for a launch on Friday, the new trading feature will be built on the dydx protocol instead of the existing Loopring protocol used for its non-custodial trading services.
“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,” the exchange stated.
Dolomite margin trading is being built on the powerful @dydxprotocol giving our traders access to over $30m in lending liquidity!
— Dolomite (@Dolomite_io) November 4, 2019
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Leverage for the traders
The new margin trading facility will provide both long and short positions on the prices of digital assets; however, leverage on both positions will be different – up to 5x leverage on long positions while short position takers will receive up to 4x leverage. In addition, the exchange will also feature stop-loss orders for margin trading.
“We’ve also developed something that we’re calling margin protection, which will liquidate your position at a slightly higher collateralization in order to allow you to retain as much of your deposit as possible,” the exchange noted.
“After liquidation you’ll still have 15% of your initial deposit rather than 10%, saving you crypto that you can put towards your next investment!”
The exchange is boasting its use of dydx protocol for the execution of trades and is claiming to be the first such exchange to implement it.
Meanwhile, other prominent exchanges are also providing margin trading facilities to crypto traders. Most recently, KuCoin introduced margin trading services to its wide base of traders. Binance also launched similar services earlier this year.