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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 Balancecan be used across all of the features on Dolomite which range from trading, borrowing, and pooling. In the image below of the
Balancespage, the right section displays your
The Balances page on Dolomite
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
DolomiteMargincore 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
GMXwhile borrowing against your
GLPto run another strategy! The point being demonstrated is
DolomiteMargindoes 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
GLPtokens deposited, have all 100 being used for vesting
GMXand at the same time use 50 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!