GM, this is your Daily Bolt briefing
In this edition, we’ll be providing you with some notes from Dopex’s most recent twitter space. This space features Dolomite, an Arbitrum-based margin trading platform that features lending & borrowing utilities as well. Learn the ins and outs of the protocol, as well as potential future integrations with Dopex, one of the largest players in the DeFi options space…
Over and out ⬇
1/ Dopex Twitter Spaces with Dolomite
Preview: 0xSaitama hosted Corey, Adam, Bobo, and Brandon to discuss Dolomite's DeFi journey, future plans, and more! Click here to listen to the full episode (60 mins).
Read our Note (7 mins) and save 53 mins.
Dopex is a decentralized Options exchange that uses blockchain technology to provide permissionless and non-custodial access to Options trading
Dolomite is a next-gen money market and margin trading protocol on Arbitrum
Dolomite Team's Crypto Journey and Vision for DeFi
Adam shares his journey into crypto, starting in 2013 when Bitcoin hit $1,000. He mentions that he and Corey got into trading in 2017, which led them to identify issues with centralized exchanges and eventually start building a DEX in 2018.
Corey talks about his entry into crypto in 2015. He mentions his initial involvement with game bonding software and how issues with PayPal led him to accept Bitcoin. Corey and Adam have been working together for nearly 10 years and are excited about their current team and community.
Bobo shares his journey into crypto starting in late 2015. He mentions that he learned about lending protocols from a friend, specifically the untapped potential of borrowing against LP in a single batch. Shortly after, he discovered Dolomite through a tweet. He mentions that he was offered a spot on the team due to his efforts in helping Dolomite grow.
Brandon says he got into crypto in 2017 and went to college with Adam and Corey. He shares that Corey was his primary source of information about crypto and blockchain. He joined Dolomite after diving deeper into the importance of Ethereum during the COVID-19 pandemic.
0xSaitama asks how the team got interested in Bitcoin and crypto, noting that it wasn't as popular back when they started. He asks if they were in finance or economics.
Brandon says that he learned everything about crypto from Corey and was in a different field altogether.
Corey explains that both he and Adam had dual degrees in computer science and business. He mentions that their interest in crypto came from curiosity and necessity. They initially started building an Android app for the Loopring protocol, which eventually led to the creation of Dolomite.
Adam says that people didn't realize the value of crypto early on. He mentions that he and Corey had the same major in college and loved doing hackathons and side projects. He talks about how the crypto space has grown, exceeding their initial expectations for decentralized exchange volumes.
0xSaitama asks how the Dolomite team decided to venture into uncharted territories instead of opting for more secure career paths like working for big tech companies.
Adam says the idea of a tech startup always appealed to them. He and Corey had been building for the sake of building for years. Adam mentions that he was still sending out job applications in early 2018, but when the opportunity to work on Dolomite came, they seized it. He recalls the summer of 2018 as a fun journey where they built the initial codebase of Dolomite with a team of talented interns.
0xSaitama asks about the process of creating Dolomite, how they decided to launch it, and the feedback they received.
Corey explains that the initial codebase for Dolomite was large and built before the modern components of DeFi existed. He says they had a hard time keeping up with the rapid growth of early DeFi protocols like Synthetix, Aave, Compound, and Uniswap.
Corey mentions that Dolomite aims to work with a diverse set of assets while offering capital efficiency and retaining "DeFi native rights."
Adam adds that "DeFi native rights" refer to staking, investing, collecting rewards, and voting. He says that DeFi needs to move away from the idea of giving up these rights to use another protocol.
Adam highlights that modern DeFi ecosystems often have multiple assets, and Dolomite aims to support a wide range of these assets.
Dolomite's DeFi Innovations and Future Plans
0xSaitama asks about Dolomite's plans and what sets it apart, specifically mentioning the portfolio margin feature.
Corey says that Dolomite aims to connect the DeFi ecosystem and enhance its composability. He explains that Dolomite allows users to open as many isolated borrow positions as they want, each independent from the other. This enables users to run different risk strategies simultaneously. Corey mentions Dolomite's "virtual liquidity" system, which allows users to earn yield based on the total amount deposited, regardless of how those assets are allocated.
Adam explains the isolated margin positions, contrasting them with platforms like Aave where all assets and borrowings are pooled together. He mentions the flexibility Dolomite offers in allowing separate positions for different assets and strategies. Adam talks about how Dolomite allows users to earn multiple types of yield simultaneously, such as lending yield and AMM pool fees.
Corey adds that Dolomite's virtual liquidity system contributes to a seamless user experience and enables a wide array of features, including risk mitigation and isolation mode.
Adam says that Dolomite plans to list LP tokens, allowing users to earn liquidity pool fees while also borrowing against those positions. He highlights that Dolomite aims to remove dead ends and roadblocks in DeFi, offering users more flexibility and options.
0xSaitama asks whether he could use a Uniswap LP token as collateral on Dolomite to borrow against.
Adam says that once they list such tokens, users will be able to borrow against them while still earning fees from the liquidity pool.
0xSaitama asks what asset one would receive when borrowing against collateral in a Uniswap V3 pool. He asks about the possibility of using ERC semi-fungible tokens from Dopex V2 as collateral on Dolomite in the future.
Adam explains that users can borrow native assets against their collateral, such as USDC or ARB. Corey says that Dolomite doesn't mint a receipt token when assets are deposited or borrowed. He credits this to the complexity of their virtual liquidity system and the infinite number of subaccounts that can be created.
0xSaitama asks about the future compatibility of Dolomite with Dopex V2. Corey says that as long as an asset can be priced and liquidated, it can be listed on Dolomite.
Corey explains Dolomite's vision, mentioning a feature called Zap that allows users to execute various financial operations with one click. He talks about Dolomite's partnership with Chainlink to enhance off-chain compute mechanisms.
Adam says that they aim for it to be a foundational piece in DeFi, similar to Aave or Uniswap. He emphasizes that Dolomite is designed for easy integration by other projects and aims to support a wide range of assets.
Adam mentions the goal of activating dormant capital in DeFi, allowing it to be used more dynamically. He highlights the unique Zap feature as an example of Dolomite's innovative approach.
Bobo describes the Zap feature as a consolidation of the best features from various money markets. He says that they rigorously test all listed assets against a shadow fork of Arbitrum.
Corey explains Dolomite's security measures, including 100% test coverage for smart contracts and real-time monitoring by Chainalysis Crypto Incident Response. He talks about a feature called Pause Sentinel, designed to automatically pause on-chain interactions if any issues arise with external integrations. Corey emphasizes Dolomite's adversarial mindset in considering worst-case scenarios.
Adam explains Dolomite's future plans, which include two main fronts: development and partnerships. He discusses the deep integrations they aim for when adding new assets and mentions the recently added Zap feature, which simplifies complex financial operations into single transactions.
Adam talks about expanding features on both the borrow and trade pages of Dolomite, including limit orders and pair trading.
0xSaitama suggests the possibility of a future collaboration between Dopex and Dolomite, particularly in the area of options trading.
Corey agrees that a collaboration with Dopex could be beneficial. He mentions that Dolomite is interested in exploring options for capital efficiency, not just for option holders but also for underwriters. Corey says that bandwidth is their main constraint and that they aim to collaborate with key DeFi projects to make the ecosystem more fluid.
0xSaitama asks about the possibility of Dolomite launching a token and mentions their XP program.
Adam says that Dolomite currently has no plans for a token, focusing instead on building a valuable product. He discusses the XP program, which rewards users for various activities both on and off Dolomite. XP can be earned for attending events like the current one and can be claimed through Galxe. The XP translates into levels, giving users access to exclusive groups and early previews of new features.