Dolomite Balances

Your Dolomite Balance is the virtual liquidity you own in the protocol that can be used across all of Dolomite's services.

All assets you deposit into Dolomite aggregate into your Dolomite Balance. Your Dolomite Balance can be used across all of the features on Dolomite which range from trading, borrowing, and pooling. In the image below of the Balances page, third column titled "Dolomite Balance" displays your Dolomite Balance. for each asset. To the right of your Dolomite Balance is your wallet balance. To move assets from your wallet to your Dolomite Balance you will need to deposit to Dolomite, which can be done using the plus and minus signs shown on each asset row.

We consider this liquidity to be virtual because the actions you perform from within Dolomite do not materialize any token transfers on-chain. Rather, they result in internal ledger changes for the DolomiteMargin core smart contract. This increases the capital efficiency of the protocol immensely, because over time users will be able to trade with each other and not just borrow/lend to each other, without their assets ever leaving the platform.

The virtual liquidity model also enables unique offerings for assets that pass along rewards or have important native functionalities (like on-chain voting). For example, you can use your GLP to vest esGMX into GMX while borrowing against your GLP to run another strategy! The point being demonstrated is DolomiteMargin does not care what you do with an Isolation Mode asset if you convert then tokens into a staked, vested, or other ecosystem-specific counterpart. You could have 100 GLP tokens deposited, have all 100 being used for vesting esGMX into GMX and at the same time use 50 of those tokens as collateral for a borrow position and keep the other 50 idle in your Dolomite Balance. The choice and flexibility is up to you!