Frequently Asked Questions
What does Dolomite do?
Dolomite is a decentralized exchange that allows you to trade your cryptocurrency assets securely, right from your own wallet. Dolomite empowers you to maintain complete control of your assets throughout the entirety of the trading process, as you are never required to deposit or withdraw crypto from Dolomite to trade. Dolomite also provides you with several other tools to improve your trading experience - cash in and out to your bank account, track the value of your portfolio in detail, and find information on thousands of tokens.
What is a centalized exchange?
Centralized exchanges are likely the kind you are more familiar with. Centralized exchanges are ones that require you to deposit your funds onto the exchange to start trading. On the exchange you can trade with other users by placing trades on the order book or filling existing trades already placed by other users. After you finish trading and want your assets back in your own wallet, you have to withdraw them from the exchange.
What is a DEX (Decentalized Exchange)?
Decentralized exchanges enable you to hold your cryptocurrency assets in your own wallet, while still making them available to trade. Trades are performed on the blockchain to ensure maximum security for all parties involved. In most other ways they behave the same as centralized exchanges. You still interact with other traders through the order book on the exchange, and can place new orders onto the books or fill existing orders. When you’re done trading however, you can just leave the webpage without needing to worry about withdrawals.
Why should I use a DEX?
If you care about the security of your assets, your control over your assets, or ease of trading, decentralized exchanges are probably for you. On a centralized exchange, if the exchange were ever hacked or the passwords lost, all of your assets deposited on the exchange could be lost in an instant. Moreover, if anything should corrupt the centralized exchange’s database, the amount designated as yours (which is tracked only internally in their own systems) could be overwritten. Overnight you could lose all your assets due to some bug, and you would have an uphill battle trying to recover it, assuming you could recover it at all. Additionally, depositing your crypto onto an exchange means you relinquish control over it. If those holdings entitled you to any airdrops, voting rights, or anything else, those rights are relinquished to the centralized exchange until you withdraw. Finally, if you’re like most crypto users and keep your crypto in your personal wallet, you may have experienced the frustration of having to wait 15 minutes to an hour for your crypto to deposit onto an exchange only for you to perform one trade, then waiting again for your assets to withdraw back to your wallet. Using a dex, that same trade process would take only a couple of minutes.
Where is Dolomite incorporated?
Dolomite is a US-based company that is incorporated in Delaware with operations in NJ and PA. The team has extensive background in the cryptocurrency space with the company’s founders being early adopters of the technology and having a long-standing relationship with the Loopring Foundation.
On Dolomite, who gets access to my private key?
Only you maintain access to your private key. If you sign in using Peak, MetaMask, or any hardware wallet such as Ledger or Trezor, Dolomite doesn’t have access to your private key. If you sign in via a mnemonic phrase, private key, or keystore file, Dolomite keeps the private key in the browser while the page is open, but never stores it. Simply refreshing or exiting the page results in the key automatically being wiped and forces you to sign in again. The Dolomite team encourages you to sign in only via Peak, a hardware wallet, or Metamask. Other sign in methods are there only for convenience.
How does Dolomite match and settle my trades?
Dolomite matches orders using its own order matching engine, and settles them via the Loopring Protocol. Built to support DEXs, Loopring is a state-of-the-art trade execution technology that enables fast and cheap settlement of orders on the blockchain. Trades are placed, cancelled, and matched off-chain ensuring maximum speed, but settled on-chain to maximize security. When you put in the amount of Token A you want to trade for, or the price of Token A you want to buy at, Dolomite effectively puts the Loopring Protocol into action. Loopring’s technology requires that trades are settled in rings - circular dependencies that compose one or more trades. This is set up such that each trade depends on the other and the price of each order is sufficient to be filled. For the sake of transparency, the code that runs order settlement is on the Ethereum Blockchain. This is great for you for two reasons. First, trades are transparent and it is impossible for Dolomite to “fake” the volume of the exchange, since every open order and every settled trade is verifiable. Second, you can rest assured that funds are never taken out of your wallet unless a trade is settled. Meaning, you maintain control of your funds throughout the entire trading process! Check out the smart contracts that Dolomite uses for more information. Additionally, for more information about the Loopring Protocol, check out their whitepapers at https://loopring.org/resources.html.
What can be traded on Dolomite?
Currently Dolomite lists only a handful of tokens representing some of the best projects built on Ethereum. Dolomite has an comprehensive listing process so that only assets that comply with US laws and regulations are currently listed. However, Dolomite has the capabilities to trade virtually anything. At the moment, Dolomite focuses on trading cryptocurrencies on Ethereum, but because there are almost no limits to what can be wrapped and tokenized, the possibilities are endless. Dolomite has the capability to trade public company stocks and bonds, or oil barrels or gold, and our intention is to pursue the licensing necessary to do so!
How does Dolomite comply with Trading Laws?
We have worked extensively with Krowne Law and DLT Law Group to ensure that our policies and practices follow the letter of the law. We have done a state-by-state analysis in the US to make sure we are operating in a compliant manner and will be pursuing licensing to operate in the states we currently do not support. Right now, Dolomite is able to operate in 32 states in the US and other jurisdictions internationally. Rest assured that any trading you do on Dolomite is secure and lawful, and will continue to be into the future!
What is WETH?
Dolomite operates on Ethereum for now and utilizes the Loopring Protocol for order settlement, which allows you to seamlessly trade Ethereum’s ERC-20 tokens. Ether (ETH), however, has existed since before the ERC-20 standard, and as such isn’t natively tradable on Dolomite. Wrapped Ether (WETH) is the solution to this problem. Ether can be “wrapped” to become WETH - an ERC20 compliant token that is natively tradable on Dolomite, as well as other DEXs. Because WETH can always be redeemed for ETH, the price of the two are the same. At any point you can “unwrap” your WETH to receive ETH.
What is WBTC?
Dolomite operates on Ethereum for now and utilizes the Loopring Protocol for order settlement, which allows you to seamlessly trade Ethereum’s ERC-20 tokens. Bitcoin operates on a different blockchain than Ethereum, and as such isn’t natively tradable on Dolomite. Wrapped Bitcoin (WBTC) is the solution to this problem. Bitcoin can be “wrapped” to become WBTC - an ERC20 compliant token that is natively tradable on Dolomite, as well as other DEXs. Because WBTC can always be redeemed for BTC, the price of the two are the same.
How do I unwrap WETH?
Dolomite currently has a interface for unwrapping WETH which is both quick and easy. You can find it by clicking the crossed arrows symbol in the bottom left of the exchange or next to your WETH balance on the exchange. Make sure that you have “To ETH” selected and enter the amount you wish to unwrap, and submit!
How do I unwrap WBTC?
Dolomite currently doesn’t support the unwrapping of WBTC, however we have several partners that enable it. Find the list here: https://www.wbtc.network/dashboard/partners
What are Dolomite's KYC practices?
Know Your Customer (KYC) and Anti-Monetary Laundering (AML) are a difficult subject for decentralized exchanges, but an important one. Since Dolomite is a US-based company, complying with US laws and making sure that you are only trading with other good people is of the utmost importance to us. With Dolomite, we wanted to strike a flexible and favorable balance for your privacy, depending on your trade volume. Dolomite’s KYC process is broken apart into 4 tiers (more on this below), which allows you to give varying amounts of information to trade varying amounts of volume. Completing the KYC process has additional benefits as well, allowing you to cash in and cash out directly between your bank account and wallet. To assure that you never perform trades with bad actors, Dolomite screens the wallets that attempt to trade on the platform upon signup and on a regular basis. Dolomite also and has the mechanisms in place to watch for structuring (moving digital assets between wallets to setup multiple “fictitious” accounts). If a wallet is deemed too risky to trade on the exchange, we may disable your account’s ability to submit trades on the platform. Fortunately, all other services on the platform, like the portfolio manager are always available, regardless of your account’s status or KYC tier.
Where can I submit feedback?
In the lower left of Dolomite’s web application, there is a button to submit an issue. Clicking this button opens a popup, fill out the form and click submit to send the team feedback. Alternatively, you can also join our telegram group chat to get a faster response from the team. We encourage you to join the conversation at telegram.dolomite.io.