Dolomite, a decentralized lending and money market protocol, has launched Zap, a feature that lets users execute complex DeFi actions such as looping and hedging in a single transaction. Traditionally, strategies like leverage looping require multiple manual steps—borrowing, swapping, redepositing, and repeating—which increases gas costs and the risk of user error. With Zap, users can borrow one asset, have it automatically traded into another via integrated DEX aggregators (such as Paraswap or Odos), and add it as collateral in the same transaction, effectively enabling one-click leverage or hedging within Dolomite’s isolated borrow positions. Zap also streamlines position management by allowing users to repay loans using collateral, deposit collateral in assets they do not currently hold, swap one collateral or debt asset into another, and withdraw collateral directly into a different asset, all through the same interface. The process is designed so that the entire Zap execution settles in a single block, keeping positions sufficiently collateralized throughout. For Dolomite, this feature is strategically important: it deepens the platform’s value proposition as a capital-efficient, “all-in-one” DeFi money market, lowers the operational barrier for advanced strategies, and enhances liquidity and composability on networks where it is deployed, such as Arbitrum.

AI-generated background, compiled from web sources — not editorial content.

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