All jobs merit pay – In recent years, Decentralized Finance, or DeFi for connoisseurs, is undoubtedly one of the most decisive innovations related to blockchain technology. Secure access to traditional financial services in a decentralized and censorship-free manner is truly a true revolution for crypto investing. The main players in this ecosystem, called “decentralized” exchange platforms allow users to create trades anonymously directly from a private wallet. This is the case of dYdX, reference DEX which we will discuss in this article.
Le Journal du Coin offers you this promotional article in collaboration with dYdX.
The concept
Operating on the StarkEx network, a layer 2 from Ethereum, dYdX is therefore a decentralized exchange platform (DEX in abbreviated English). Specializing in derivative products, it offers margin trading as well as perpetual contracts, and also offers the opportunity to take passive income through staking. In addition, it allowst its users to compete against others through competitions.
Its interface is very easy to learn, very similar to the big centralized exchanges. The fundamental difference lies in the fact that users can remain anonymous, and own the private keys to the wallet where their funds are stored.
dYdX built around two entities:
- A decentralized entity, the dYdX Foundation, Decentralized Autonomous Organization (DAO in English). The community proposes and votes on all changes to the platform.
- A centralized entity in the United States with a team and employees. He takes care of the technical maintenance and the implementation of the evolutions voted by the dYdX Foundation.
Platform and team history
Team, investors and users
The protocol was born in July 2017, at the initiative of Antonio Julianno, a developer who previously worked at Coinbase and Uber. Starting from a blank slate, he was able to quickly put together a competent team and attract the attention of investors. Now supported “by the best”, the protocol has already raised several million dollars (65 million by June 2021) to expand.
dYdX has won over 25,000 traders with daily trading volumes regularly exceed $1 billion. This makes it a first DEX in terms of volume according to CoinMarketCap.
The total blocked value (Total Value Locked= TVL) in exchange for about $400 million. Based on this criterion, Defillama places dYdX in the top 15 of DeFi on Ethereum.
Protocol evolution
Basically, dYdX is implemented directly on the blockchain Ethereum. The platform offers more products than today spot trading, loan and borrowing. These services are suspended to allow migration to the StarkEx platform. Ever evolving, dYdX should offer it again with the launch of V4, before the end of the year.
>> Come and take your first steps in the decentralized crypto universe at dYdX (commercial link) <
StarkEx is a second level Ethereum scaling solution known as “Layer 2”. This allows dYdX to benefit from Ethereum’s security and composability, while offering near-zero transaction fees. Schematically, orders are gathered before being sent anonymously and securely on the Ethereum network using technology Zero-Knowledge Rollup (ZK Rollup). Transactions are thus executed instantly and traders do not have to pay gas fees. to validate them!
Instead, the team remains in constant search for maximum decentralization. Anticipating a performance and centralization problem announced for layers 2 of the Ethereum blockchain, dYdX decided to create its own blockchain based on the Cosmos network and the Proof Of Stake Tendermint consensus mechanism. The migration of dYdX to the Cosmos ecosystem will mark the entry of the protocol into its fourth version (V4) and should be effective by the end of 2022.
dYdX products
perpetual contracts
These are the main products of the platform. dYdX offers perpetual contracts in 36 different crypto pairs. the trades made through an order book. There are different types that users can choose according to their strategies:
- limit order
- market order
- Stop Limit
- Stop the Market
- trailing stop
- Remove the Income Limit
- Take Profit Market
It is possible to set a leverage up to x20 to increase profits … or losses. 3 assets can serve as collateral: ETH, DAI and USDC. Transactions can be made individually to commit only part of your funds, or combined to place your entire account as collateral.
Expenses
The platform fee is simple and low. For traders whose amount does not exceed $100,000 in the last 30 days, dYdX doesn’t take anything. On top of that, the fees are reduced from a million dollar trading volume.
The platform does not tax deposits or withdrawals. You, however, must pay gas fees on the Ethereum blockchain. If you deposit more than 500 USDC in your first deposit and more than 1000 USDC for subsequent deposits, dYdX will cover these fees.
>> dYdX, the decentralized derivatives specialist offers you gas fees (commercial link) <
The DYDX token
The DYDX token is used to vote on protocol evolution proposals. It also provides discounts on platform fees andincrease rewards by staking them.
Users exceeding $100,000 in volume trade receive DYDX rewards that allow you covering between 80 and 120% of their costs on average.
Staking
dYdX allows you to set two tokens:
- USDC to participate in the liquidity of protocol exchanges.
- DYDXs to participate in security.
In both cases, rewards are paid by DYDX.
Competitions and NFTs
For the most competitive, dYdX offers the possibility to compete against other users. The best to get NFTs (they Hedgies) that allows you to move to the next third regarding the payment reductions offered by the platform. For example, a user holding 5000 dYdX tokens and a Hedgie ends up in Tier 4 (15% discount) instead of Tier 3 (10% discount).
In addition to having the right to platform privileges and dollar rewards, these small digital entities represent an advantage that can prove decisive in winning the bet.
Conclusion
dYdX is a protocol with great potential, available in French and on mobile. In full expansion, it’s not over yet. Many features have already been announced, such as the return of spot trading for V4 which is imminent. At a time when regulation is vindictive, many investors prefer to remain independent. In this sense, there is no doubt that the protocol will attract more and more users. Why don’t you?
Take advantage of the current market conditions to quietly accumulate Bitcoin. Register now at dYdX and enjoy exceptional returns with the decentralized leader in derivatives (trading link).