DeFi Protocol Launches Dolomite vARB, Bringing Dual Functionality to ARB Containers

Dolomite says vARB is a “vote-enabled ARB” that allows token holders to participate in the governance of arbitrage by choice. While it can't be borrowed or borrowed, vARB means users can vote using their ARB holdings.

DeFi protocol Dolomite has launched vARB, a “vote-enabled ARB” token that allows holders to participate in governance voting on the Arbitrum network.

vARB is not a new token, and is non-transferable and non-tradeable. Unlike ARB, users cannot lend or borrow this token, the protocol said in a press release shared with CoinJournal.

However, vARB allows holders to stake their ARB tokens as collateral to gain management and voting rights on the arbitrage.

Develop ARB voting

According to Dolomite, vARB will run in “neutral mode” on the protocol, where users can use them to vote on the arbitrum. That is not possible when ARB is locked in liquidity pools and used for lending and borrowing. As it stands, ARB locked in DeFi protocols such as Aave or Compound cannot be used in governance voting.

vARB makes this possible as users can simply convert ARB to vARB to vote and borrow and borrow. However, the token has another advantage – owners can use it to increase the weight of the vote.

To achieve this, users deposit vARB as collateral to borrow additional ARB. You can then replace the additional ARB with the vARB, which can be up to five times. As stated in the announcement, the value of the vARB is the same as the ARB, so holders do not face the risk of dilution from price movements.

Arbitrum continues to grow as one of Ethereum's most dominant Layer-2 networks. The network launched its ARB token in March and has more than $2.4 billion in Total Value Locked (TVL) as of December 28, 2023.

ARB's price was $1.52, up more than 32% last week when analysts predicted it could rise to $2.