Arbitrum-based decentralized exchange and lending protocol Dolomite is expanding to Polygon’s zkEVM ecosystem.

Initially, the margin trading protocol will only allow transactions with ETH, USDC, WETH, and MATIC, although it plans to add support for more tokens as the year progresses. Arbitrum's native ARB will likely be integrated as part of the second batch.

“Dolomite’s Virtual Liquidity system should be a great fit for zkEVM, allowing users to easily access value without compromising on their DeFi-native rights,” said Jack Melnick, head of DeFi for Polygon Labs, in a press release.

Down from its Jan. 14 peak of $21M, Dolomite currently holds $19M in total value locked (TVL), according to DefiLlama. Thanks to its “Zap for one-click collateral” feature launch, the protocol has been gaining traction since November 2023.

Dolomite's virtual liquidity system lets users effectively recycle or reuse liquidity in multiple ways, enabling them to generate multiple sources of yield simultaneously. The launch on Polygon zkEVM is a bid to leverage both nascent environments for broader expansion.

Polygon zkEVM went live on Mar. 28, 2023. The protocol delivers an Ethereum-compatible rollup powered by zero-knowledge proofs. It touts a speedier and more privacy-centric option for scaling the Ethereum network.

While the broader Polygon network boasts a TVL of $888M, Polygon zkEVM currently holds $14.3M in TVL, a 60% drop from its $35.3M peak in July of last year.