DeFi protocol Dolomite launches vARB to deliver twin performance to ARB holders

• Dolomite says vARB is a “vote-enabled ARB” token that may permit holders to take part in Arbitrum’s governance via voting.
• Whereas it can’t be lent or borrowed, vARB means customers can use their ARB collateral to vote.

DeFi protocol Dolomite has launched vARB, a “vote-enabled ARB” token that permits holders take part in governance voting on the Arbitrum community.

vARB isn’t a brand new token, and is non-transferable and non-tradable. In contrast to ARB, customers received’t have the ability to lend or borrow this token, the protocol stated in a press launch shared with CoinJournal.

Nonetheless, vARB will permit holders to faucet into ARB tokens deposited as collateral to entry governance and voting rights on Arbitrum.

Amplify ARB voting energy

In line with Dolomite, vARB might be held in “isolation mode” on the protocol, with customers in a position to make use of them for voting on Arbitrum. That’s not potential with the ARB locked in liquidity swimming pools and used for lending and borrowing. Because it stands, ARB locked in DeFi protocols corresponding to Aave or Compound can’t be utilized in governance votes.

vARB makes this potential as customers can use the identical ARB for voting and for lending and borrowing by simply changing their ARB to vARB. The token nevertheless does have one other benefit – holders can use it to amplify their votes’ weight.

To realize this, customers deposit vARB as collateral, attending to borrow extra ARB. They’ll then swap the extra ARB for vARB, with this potential as much as 5 instances. As acknowledged within the announcement, holders face no danger of liquidation from value actions given the worth of vARB stays the identical as that of ARB.

Arbitrum continues to develop as considered one of Ethereum’s most dominant Layer-2 networks. The community launched its ARB token in March and has over $2.4 billion in Complete Worth Locked (TVL) as of December 28, 2023. 

The worth of ARB was $1.52, up by greater than 32% up to now week as analysts predict a possible surge to $2.