Zap is a streamlined collateral solution on the Arbitrum network, facilitating users to quickly adjust their collateral against leveraged assets.
Dolomite, a DeFi lending protocol, has recently shared details of its latest advancement, Zap. This new collateral solution, tailored for the Arbitrum network, works to refine capital deployment techniques and user experience within the DeFi space:
We're thrilled to announce the launch of our long awaited ⚡️Zap feature! 🎉
⚡️Zap will change how you use lending protocols, allowing you to borrow, trade, and collateralize all in a single transaction, and paves the way for much more!
Let's dive in 👇https://t.co/3wrEOU1m70
— Dolomite 🏔️ (@Dolomite_io) August 8, 2023
In traditional DeFi lending landscapes, users aiming to maximize their yield through a technique known as “looping” often found themselves navigating a maze of transactions. The core rationale behind this iterative procedure has been a structured borrowing limit.
This limit is designed to ensure that users maintain an overcollateralized position, preserving the stability and security of the lending platform. However, this kind of configuration, while safeguarding interests, also introduced complexities for seasoned users.
Enter Zap.
With this innovation, Dolomite aims to reduce operational friction and offer a seamless approach. Now, tasks that previously necessitated multiple transactions can be condensed into a single action. This streamlining is expected to enhance efficiency, reduce transaction times, and potentially lead to cost savings:
Dolomite’s first DEX aggregator integration is with @paraswap which enables
💸 Excellent pricing
🧬 Generic routing
💰 A new revenue source for Dolomite in the form of positive slippageOver time we will be adding support for more aggregators!
— Dolomite 🏔️ (@Dolomite_io) August 8, 2023
Designed to be executed within a single block, this tool is built to assure that user positions remain securely collateralized, balancing innovation with prudence.