Dolomite Launches Lending on OKX’s X Layer

We’re incredibly excited to announce that Dolomite is now live on OKX’s X Layer! 🎉

We’re thrilled to be collaborating with the amazing team at OKX to bring all the power and features of Dolomite’s lending protocol to the new X Layer ecosystem. We hope to bring the success we saw in the Arbitrum ecosystem to a brand new arena, and to grow with X Layer as it establishes its place in the DeFi landscape.

What is X Layer?

X Layer is OKX’s innovative and secure ZK layer 2 network powered by the OKB token and built using Polygon CDK, that offers 100% EVM compatibility, exceptional performance, low fees, and robust security — achieved with seamless integration. X Layer is built on EVM validium, offering scalability and flexibility in data availability. X Layer seeks to have low fees, ZKP-powered scalability, Ethereum security, and near instant finality, all powered by OKX product integrations and an all-in-one web3 gateway. With 50M users in the OKX ecosystem, we feel that there is huge potential for the network.

OKB is the native token of X Layer, as well as the asset that powers the OKX ecosystem. You can trade OKB like any other asset, and can also use OKB in a wide range of applications and use cases. OKB is an ERC-20 token on the Ethereum network and can be bridged to X Layer at a 1:1 ratio.

What is Dolomite?

Dolomite is a next-gen decentralized money market and DEX. By having the capability to integrate far more assets at a far deeper level than other lending protocols such as Aave and Compound, Dolomite has grown quickly in the Arbitrum ecosystem. Users on Dolomite can use a wide range of advanced yield-bearing assets as collateral, allowing them to perform strategies that maximize their yield or maintain a delta-neutral position. Because Dolomite is able to integrate deeply with each asset it supports, users don’t have to give up their right to stake, vest, vote, or earn rewards, even while using those assets as collateral.

Taking the lending protocol to the next level, Dolomite integrates with DEX aggregators and directly with protocols to allow for quick and easy swapping of assets without needing to leave Dolomite, making it easy to swap between any listed asset, modify loans, and loop up with just one click.

Dolomite Launch

Dolomite’s story on X Layer will have a humble beginning — the assets available at launch for lending and borrowing are OKB, WETH, USDT, USDC, and WBTC. Users can supply and borrow any of these assets, allowing for leveraged trading, earning yield, or just freeing up some capital. While simple compared to the vast array of complex assets Dolomite supports on Arbitrum, this will be the first money market launching on X Layer and will provide an essential DeFi primitive that will form the foundation for other economic activities.

However this is just the start. We aim to make Dolomite the leading lending protocol on X Layer, with plans to integrate every exciting project and asset that enters the X Layer ecosystem. Through these integrations, Dolomite will help unite the X Layer ecosystem and power up every asset, freeing up dormant capital and helping users maximize their yield.

We are very excited to launch on top of X Layer. We’re big fans of the OKX team and their commitment to building a L2 using zk tech. We’re happy to be early supporters of their ecosystem and to help bring DeFi to the masses.

— Corey Caplan, co-founder of Dolomite

How to use X Layer

It’s always exciting having the opportunity to be an early adopter of a new ecosystem! Opportunities to try new projects and protocols abound, and we’ll help you get started on X Layer.

To start, you’ll want to bridge assets over from the chain of your choice. We recommend using the official bridge on OKX’s web app.

Simply select the chain you would like to bridge from, and ensure that “X Layer” is selected as the chain you will be bridging to. Then select the asset you would like to bridge from and to. We recommend bridging to OKB — the base asset for the network that’s used to pay gas fees. Enter the amounts and submit the transaction, and then you can track the progress of your assets as they’re bridged over to X Layer.

Once you have assets on X Layer, feel free to use the Swap tab on the very same OKX page to swap between various assets on X Layer. All the assets available for swapping — OKB, WETH, USDT, DAI, WBTC, and USDC — are also supported on Dolomite.

How to use Dolomite on X Layer

Now that you’ve bridged your assets and swapped into some assets you’d like to hold and use, you can head over to app.dolomite.io to try out Dolomite on X Layer. Make sure to select X Layer as your network on Dolomite by clicking the button to the left of your wallet address on the navbar.

Once you have X Layer as your selected network, you’ll want to begin by depositing your assets. Dolomite uses a virtual liquidity system for all activities on the protocol. This is a familiar experience if you’ve used a centralized exchange (such as OKX!), where you deposit assets to the protocol in order to use them on the protocol, and when you’d like to use them elsewhere you withdraw from the protocol. This virtual liquidity model is what enables Dolomite to allow you to retain the advanced functionality of deposited DeFi assets, such as staking, vesting, voting, and rewards.

As soon as you’ve deposited, you’ll begin earning lending yield on your deposits. This will be familiar if you’ve used Aave or other similar lending protocols in the past. The APR you earn on your deposits is based on the utilization of that asset — how much of that asset is being borrowed by users of Dolomite. At launch the yields will start at 0%, but as people begin to try out borrowing on the protocol early depositors will be the ones earning that yield!

To try out borrowing, head over to the Borrow page by clicking “Borrow” in the navbar. On this page you’ll be able to manage your “borrow positions”, essentially isolated loans, each with their own collateral and borrowed assets. Unlike Aave, assets deposited to Dolomite don’t act as collateral for borrowing by default. You can choose which assets and how much of that asset you’d like to borrow against, allowing you to better manage risk by separating your risky borrow positions from safer ones and from your balances that are just there to earn lending yield.

On the left of the page you’ll see the assets you’ve deposited to Dolomite that are available to be used. On the right side you can see the borrow and supply rates of each of the assets on Dolomite. To open a borrow position, click “Open New Borrow Position”, select an asset you’d like to use as collateral, enter the amount that you’d like to use as collateral, and click “Add”. Once your position is opened, you can add other collateral or borrow against the collateral you’ve added.

You can learn more about borrowing on Dolomite (as well as Dolomite’s many other awesome features) in the Dolomite Docs.

What’s next?

There’s much more that will be following up this launch, here are some things to look forward to:

• ⛏️ Earn Minerals: Dolomite just recently launched Minerals, a new system to help give recognition to those who provide liquidity for key assets in the Dolomite ecosystem! Dolomite users on X Layer will begin earning Minerals on their deposits later this week, so make sure to get your deposits in! Learn more about minerals here: https://docs.dolomite.io/minerals
• ✨ Earn Dolomite XP: Dolomite community members earn XP (experience points) for trying features and assets on Dolomite, hitting usage milestones, and attending events like Twitter Spaces. That XP earns you levels, which get you roles in the Dolomite Discord, access to exclusive groups, and benefits on the Dolomite web app! Right now that XP is exclusive to tasks on Arbitrum and attending Spaces, but some X Layer exclusive XP will be coming very soon.
• ⚡️Zap: Dolomite’s killer feature is the way it seamlessly integrates lending and borrowing with DEX and protocol integrations, allowing you to quickly and easily swap assets in your Dolomite Balance or being used in borrow positions. This is what lets you loop up your borrow positions in one click, as well as swap between collateral and debt, and so much more! We’re working closely with the OKX team to bring Zap to X Layer soon!
• ⛽️ More accurate gas estimation: Right now users of some wallets such as Rabby may find that gas estimation takes a while or overestimates the amount needed. This will be cleaned up over the coming weeks. These estimation issues don’t affect the amount of gas the transactions actually require however, so don’t worry, you won’t be paying any more than you should!
• 🤝 Ecosystem Collaboration: We’ll be collaborating with other projects building on X Layer so we can make the ecosystem the best it can be!
• 💎 New Asset Integrations: We’ll be onboarding new assets from the X Layer ecosystem onto Dolomite so more community members can make use of Dolomite’s features with their favorite assets!

We’re so excited to finally have Dolomite live on X Layer, and we can’t wait for everything to come. Along with everything above, we have tons of new features planned for Dolomite to keep making Dolomite the most powerful DeFi tool out there!

We hope you’ll give Dolomite a try and come chat with us on Discord. See you soon! 🏔️