- Dolomite says vARB is a “vote-enabled” ARB token that permits holders to take part within the governance of Arbitrum by means of voting.
- Though 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 to take part in board votes on the Arbitrum community.
vARB is just not a brand new token and is non-transferable and non-tradable. Not like ARB, customers can’t lend or borrow this token, the protocol mentioned in a press launch shared with CoinJournal.
Nevertheless, VARB will enable holders to leverage ARB tokens deposited as collateral to entry governance and voting rights on Arbitrum.
Improve the voting energy of the ARB
In keeping with Dolomite, vARB will probably be stored in “isolation mode” as per protocol, with customers ready to make use of it to vote for Arbitrum. That’s not attainable if the ARB is locked into liquidity swimming pools and used for lending and borrowing. Because it stands now, ARB locked in DeFi protocols akin to Aave or Compound can’t be utilized in board voting.
vARB makes this attainable as a result of customers can use the identical ARB for voting and for lending and borrowing by merely changing their ARB to vARB. Nevertheless, the token has one other benefit: holders can use it to extend the load of their votes.
To realize this, customers deposit vARB as collateral, permitting them to borrow extra ARB. They’ll then change the additional ARB for vARB, a most of 5 occasions. As acknowledged within the announcement, holders will not be susceptible to liquidation resulting from value actions as the worth of vARB stays the identical as that of ARB.
Arbitrum continues to develop as certainly 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.
ARB’s value was $1.52, up greater than 32% up to now week as analysts predict a possible rise to $2.