Here’s Why Dolomite (DOLO) Pumped Over 52% in 24 Hours
Dolomite, a decentralized cross-chain money market protocol, is among today’s top gainers, according to data from the price-tracking website, CoinGecko. Its native token, DOLO, saw more than a 52% pump, bringing its valuation to $0.0625 at the time of writing.
The cryptocurrency’s price surge is heavily attributed to a recent collaboration between Dolomite and World Liberty Financial (WLFI), a Trump-backed DeFi project.
WLFI Explores Crypto Lending
Using Dolomite’s infrastructure, World Liberty Financial expanded into crypto lending. On January 12th, the Trump-backed protocol launched the WLFI Markets to facilitate seamless borrowing and lending.
In most crypto lending protocols, users cannot stake or vote while providing their cryptocurrencies as collateral to secure a loan. However, Dolomite takes a different approach. Through its modular capital optimization design, users can continue to stake, vote, and earn rewards while using the same crypto holdings as collateral.
Already, World Liberty Financial’s dollar-pegged stablecoin, USD1, has been integrated into the WLFI Markets. This means that users can access lending and borrowing via the stablecoin. Other supported assets include WLFI, ETH, cbBTC, USDT, and USDC. Through these cryptocurrencies, users can earn rewards from providing liquidity or secure loans by providing them as collateral.
The WLFI team explained that this is one of the various use cases in which the USD1 stablecoin will be incorporated. Already, this integration has taken USD1’s market metrics to greater levels. At the time of writing, it has seen nearly a 50% surge in 24-hour trading volume to over $1.28 billion.
The WLFI team has integrated the USD1 points program into the WLFI Markets, a channel through which participants can earn additional rewards.
To incentivize users to use the USD1 market on Dolomite, the World Liberty Financial team offered WLFI token rewards. This means that those who deposit USD1 into the market will become eligible for rewards. The rewards are accessible via the DeFi protocol, Merkl.
WLFI Market’s Future Utilities
The announcement highlighted that WLFI Markets will advance the project’s goal of expanding in the real-world asset (RWA) business. It stated:
Holders of the WLFI token will have governance rights to submit proposals and vote on which cryptocurrencies to add to the collateral list, as well as on other incentive structures within WLFI Markets.
In the future, WLFI Markets will be incorporated into the WLFI mobile app. This way, users can access tokenized RWAs, card-focused financing using USD1 balances, and enhanced on-ramp and off-ramp services.
DOLO Surges
Since WLFI Markets lives on the Dolomite infrastructure, users would need to own DOLO tokens to access some services within its ecosystem. This increased usage, alongside the positive market sentiment, fueled DOLO’s price surge today.
Unlike DOLO, WLFI saw a rather poor price increase despite the news. Even though it jumped from $0.1631 to $0.1706 at press time, its price is only 2.3% up in the past 24 hours.
The post Here’s Why Dolomite (DOLO) Pumped Over 52% in 24 Hours appeared first on CoinTab News.
You May Also Like
Republic Europe Offers Indirect Kraken Stake via SPV
cpwrt Limited Positions Customer Support as a Strategic Growth Function
