dYdX is focused on building more advanced trading tools on the Ethereum blockchain. Like with other Defi products, the dYdX protocol is available for anyone to use and build upon–with users’ assets managed by smart contracts instead of people.
What is dYdX?
dYdX is a decentralized exchange (DEX) platform that offers perpetual trading options for over 35 popular cryptocurrencies including Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), and Cardano (ADA). It is one of the world’s biggest decentralized exchanges in terms of trading volume and market share.
dYdX equips traders with off-chain order books with on-chain settlement and enables them to short-sell tokens, increase exposure by longing with leverage, or earn interest on deposited tokens to move quickly. dYdX leverages StarkWare’s Layer 2 to eliminate the need to trust a centralized exchange while trading, and thus combines the security and transparency of a decentralized exchange, with the speed and usability of a centralized exchange.
On June 22, 2022. DYDX has announced plans to build a private blockchain on the Cosmos platform and launch it soon in the coming months. read more
DYDX (dYdX) is the governance token for the layer 2 protocol of the eponymous non-custodial decentralized cryptocurrency exchange. It serves to facilitate the operation of layer 2 and allows traders, liquidity providers, and partners to contribute to the definition of the protocol’s future as a community.
Token holders are granted the right to propose changes on the dYdX’s layer 2 and are presented with an opportunity to profit through token staking and trading fee discounts.
What is the unique selling point?
dYdX has the following outstanding features:
- Leverage – Leverage: In Margin trading, traders will be supported to trade with leverage up to 10x (asset value) and non-term contracts (Perpetuals).
- Lending & Borrowing – Borrowing & lending: Users can borrow directly on the exchange, or lenders can deposit on the exchange to optimize profits by holding crypto assets and receiving interest.
- Portfolio – Portfolio Management: View, and manage close positions, and can track the performance of crypto assets.
- Trustless: Do not depend on any 3rd party intermediaries, and at the same time reduce the risks if the exchange “plays a game”.
- dYdX Options Protocol is used to reduce risk in speculation, anyone can create trades on any ERC-20 token and those transactions always allow easy trading.
dYdX chain will be built using the Cosmos SDK and Tendermint Proof-of-Stake consensus protocol. These technologies are part of the Cosmos ecosystem, an interconnected system of application-specific blockchains. The new chain will be released to support dYdX’s fourth iteration (V4).
The team believes that, following the move, dYdX will be able to multiply its processing capacity by ten. It will also require no trading gas fees, instead sporting a percentage-based trading fee structure similar to centralized exchanges. Fees will accrue to validators and stakers through the DYDX token.
- Token Name: dYdX Token.
- Ticker: DYDX.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0x92d6c1e31e14520e676a687f0a93788b716beff5
- Token Type: Governance.
- Total Supply: 1,000,000,000 DYDX.
- Circulating Supply: Updating.
- Community: 50%
- User Trading Rewards: 25%
- Retroactive Rewards: 7.5%
- Liquidity Provider Rewards: 7.5%
- Community Treasury: 5%
- Liquidity Staking Pool: 2.5%
- Liquidity Provider Rewards: 2.5%
- Investors: 27.73%
- Employees & Consultants of dYdX Trading or Foundation: 15.27%
- Futures Employees & Consultants of dYdX Trading or Foundation: 7%
Token Release Schedule
Token Use Case
- Staking: The DYDX token will be used to provide liquidity in the protocol.
- Get Products & monthly rewards in the app by claiming on dYdX exchange.
- Voting: Used to propose and vote on important system changes.
The plan for dYdX has always been to offer increasingly advanced trading features such as options and derivatives along with their flagship margin trading features. Recently the project has added “stop-loss” options to allow traders to limit their potential losses.
The team also plans to expand beyond the three basic crypto assets currently available on the platform. By adding more complexity to their platform, dYdX is also adding to the complexity of the broader Defi ecosystem–a sign of a maturing market.
Find more information about: dYdX
If you have any questions, comments, suggestions, or ideas about the project, please email [email protected].
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