Dolomite Launches ⚡️Zap, Offering One-Click Looping and Hedging
We’re incredibly excited to announce a long awaited feature that we’ve been working hard on the last few months — ⚡️Zap!
⚡️Zap is essentially a deep integration between Dolomite and any DEX aggregator (at launch we have integrated with industry leader Paraswap), allowing users to quickly and easily swap between any asset on Dolomite in ways not possible on any other lending protocol.
The ⚡ Zap rollout enables several key actions:
- Borrow one asset, then have it traded to another asset and added as collateral, all within the same transaction
- Repay your loan using your collateral
- Deposit collateral in the form of an asset you don’t hold
- Withdraw collateral to a different asset
Let’s dive right in!
Zap your debt into collateral
Possibly the most exciting and unique feature of ⚡️Zap is the ability to, in a single block, borrow one asset, then have that asset converted to another asset which is then added as collateral. This allows you to borrow beyond normal collateralization limits and perform one-click looping and hedging!
So for example say you have $100 of GLP collateral earning 10% APR, and you can borrow USDC at 5% APR. You want to borrow USDC to arbitrage the difference and hold as much GLP as possible. In the past, you would have had to deposit that $100 of GLP, borrow around $85 of USDC, take that USDC to GMX, convert it to GLP, add that $85 of GLP as collateral, and repeat several more times in order to maximize your APR.
With ⚡️Zap that all changes. You can take your $100 of GLP collateral, borrow $400 of USDC, have that swapped into $400 of GLP, and have that GLP added to your collateral (leaving you with $500 of GLP collateral and $400 of USDC debt) — all in a single transaction.
This will massively streamline the process of looping and hedging, making it faster and simpler to do on Dolomite than anywhere else.
Repay loans using collateral
This is essentially the reverse of the above, letting you unwind borrow positions in a single click by repaying your debt using your collateral. In one transaction your collateral is withdrawn, swapped into the debt asset, and used to repay your debt. This makes it quick and easy to close out positions without needing to laboriously withdraw portions of your collateral to repay portions of your debt while retaining proper collateralization of your position.
Add or withdraw collateral
With ⚡️Zap, the assets you hold don’t need to be the assets you use as collateral!
If you currently hold USDC but would like to open a borrow position using jUSDC as collateral, there’s no longer any need to take your USDC to a third party to trade it before bringing it back to Dolomite to use it as collateral. Just ⚡️Zap right from your USDC balance to jUSDC collateral in one click!
Our DEX aggregator integration
Dolomite’s first DEX aggregator integration is with Paraswap, which enables excellent pricing, generic routing, and the ability for Dolomite to capture positive slippage as a new revenue source.
Over time, we will be adding support for more aggregators which increase the robustness and competitiveness of ⚡Zap. Additionally, Dolomite’s custom built generic unwrapper and wrapper adapter will let even the most unique assets on Dolomite (including LP tokens such as GLP, jUSDC, plvGLP, PT-GLP, etc) mesh with any DEX or DEX aggregator we integrate with ⚡Zap in the future!
Give it a try!
You can try it out now at app.dolomite.io - just look for the new ⚡Zap button available on open borrow positions, and click it to enable new functionality!
To celebrate this launch, we’ve also integrated two new assets for you to use with ⚡Zap — Rocket Pool’s rETH and Lido’s wstETH! 🎉
Try out ⚡Zap by zapping ETH debt to rETH or wstETH collateral in just one click!
So much more to come
This is just the beginning for ⚡Zap, we’re going to continue to build out more features for it to make it even more powerful. Features such as Zapping to open a borrow position, being able to Zap one collateral assets into a different collateral asset, or one debt asset into a different debt asset.
We can’t wait for you to give ⚡Zap a try and to see how much ⚡Zap will change how you use lending protocols!
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For more information about Dolomite, please visit https://dolomite.io.
