DYDX (dYdX) — a decentralized margin trading protocol, built on the Ethereum blockchain. Its governance token for the second layer protocol of the non-custodial decentralized cryptocurrency exchange of the same name.
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About the DYDX (dYdX) project
An open source project with smart contract functionality, $dYdX is designed for users to lend, borrow and trade crypto assets. Although the project supports spot trading, the main focus of the platform is on derivatives and margin trading.
The founders of the $dYdX project are:
- Antonio Giuliano - experienced programmer;
- Zhuoxun Yin — Operating Officer;
The scaling solution allows the company to increase transaction speeds, eliminate gas costs, lower trading fees and lower protocol minimum trade sizes. The $dYdX project coin serves to facilitate the work of the 2nd level and allows traders, liquidity providers and partners to contribute to the definition of the future of the protocol as a community. Token holders are given the right to propose changes at the second level of $dYdX, as well as the opportunity to profit from token placement discounts and trading commissions.
Key features of the platform
$dYdХ — a cryptocurrency exchange that combines advanced financial instruments with decentralization.
The platform supports:
| Margin trading | A financial product that allows investors to increase their exposure to digital assets through leverage. |
| Perpetual contracts | A type of futures contract that does not have a predetermined sell date is also available for trading on dYdX. |
The exchange currently offers a maximum leverage of 25x for synthetic assets with no expiration date. The project primarily decided to implement the 0x infrastructure to improve its efficiency as a DEX and to use off-chain order books with on-chain settlement to improve trading efficiency. Previous attempts to create decentralized derivatives have involved using an oracle-based approach to pass the exchange rates of asset pairs to smart contracts.
Together with trading and liquidity rewards, $dYdX introduces retroactive mining benefits, allowing the platform to show appreciation to historical users and incentivize them to trade under the second layer protocol. Holders can stake their tokens in $dYdX security and liquidity pools. While the safety pool provides the platform with protection in the event of a shortage, the liquidity pool serves to attract high-end market makers.
Safety
$DYDХ — an ERC-20 token, deployed on the Ethereum mainnet. The company's second layer scaling solution runs on Starkwire's ZK-STARKS technology and uses the Ethereum blockchain to verify proof of transactions.
Tokenomics of DYDX
A total of 1 billion coins have been minted, which will be distributed over five years, as follows:
- 50% of the offer will go to the community;
- 25% - as trading reward;
- 7% - for liquidity provider fees;
- 5% - to the community treasury;
- 2% - to users, placing USDC in the liquidity pool;
- 2% - for users, placing funds in a safe betting pool;
- 7% - for retroactive mining rewards;
Cryptocurrency is currently available for purchase on many leading cryptocurrency exchanges, some of them:
- Huobi Global;
- Binance;
- KuCoin;
- FTX;
Considering the fact that dYdX is currently one of the leading decentralized exchanges that has already established itself in the crypto world, its recently released governance token has a good chance of keeping the price going up. dYdX currently lends and borrows at the Ethereum level and supports three main assets: ETH, DAI and USDC. While some might think that this is a rather limited asset selection, it is important to remember that dYdX is a completely trustless, non-decentralized margin trading protocol and is primarily designed to work as such, not just lending and borrowing.