What Is dYdX? A Guide To Trading Platform

What Is dYdX?

dYdX is a trading platform gaining prominence. It is a DEX (decentralized exchange) that enables perpetual contract trading, margin trading, and more.

The name of the platform ‘dYdX’ comes from the concept of ‘derivatives’ in mathematics.

Earlier, the term derivatives was used in the traditional financing realm to denote the contracts existing between traders for betting purposes on the future prices of particular underlying assets.

The value of these futures and options is derived from stocks and other securities that can be bought by someone and sold in the marketplace.

Antonio Juliano, a former Coinbase software engineer, founded dYdX in 2017. He launched the exchange in July 2017 and the platform in August 2017.

At the time of its launch, dYdX operated over Ethernet layer 1 and offered crypto margin trading, lending, and borrowing.

What is perpetual contract trading?

Perpetual futures can be defined as a kind of derivative contract that enables traders to speculate on the future prices of assets that do not have a date of expiry.

It means that the perpetual trades can be held for an indefinite period as they do not have a set date of expiry like the traditional futures contracts do.

In the crypto realm, perpetual futures are getting more attention as a financial instrument so you can use it to speculate on the leading cryptocurrencies such as Bitcoin and Ethereum.

Perpetual futures may be more liquid than the spot cryptocurrency market and offer a larger degree of leverage.

Let’s Come Back To Our Core Question: What Is dYdX?

dYdX exchange is powered by the dYdX chain. It is one of the leading DeFi protocol developers if you are looking for advanced trading.

You can trade 62 cryptocurrencies on its platform. There is only a low fee and it offers deep liquidity. You can access up to 20x buying power.

At the time of writing this article, dYdX had 62 markets, as we mentioned before, with a day’s trading volume of $662 million US dollars, a day’s trades of 312,414, and an open interest of 139 million US dollars.

dYdX Key Features

what is dYdX

Mobile Friendly

dYdX is completely mobile-friendly. You can access the platform from your mobile phone using its website or through the specially dedicated app.

It is compatible with iPhone but not compatible with Android as of now. However, the platform has announced that the Android version is coming soon.

Self Custody

You are the sole and complete custodian of all your funds. There is no risk of bank runs. You keep the whole custody of your funds while trading.

Complete decentralization

dYdX is a fully decentralized platform and operates both as a native chain and a governance protocol.

The key on chain metrics states that there is a blockchain height of 12,068,408, transactions of 54,143,434, 0.00% inflation, and more.

Simple onboarding 

You can log into the platform with the crypto wallet that you already have and can start trading as soon as possible. There are no delayed waiting periods.

Other than these, dYdX trades top pairs with deep liquidity, and the new pairs are listed frequently and quickly, you can earn instant rewards after each trade in the form of $DYDX, it charges low fees, and you have governance power as you can control the future of dYdX Chain.

You can find a Help Center where you can learn more about the platform on its official website.

dYdX Current Markets And VCs

The current markets that you can find at the platform are: Cardano, Uniswap, Ripple, Polkadot, Bitcoin, Maker, Polygon, Aave, Arbitrum, Aptos, The Graph, Aevo, BONK COIN, Ethereum, Solana, Sui, Jupiter, Internet Computer, Pyth Network, Near Protocol, Avalanche, Filecoin, Fetch.ai, Blur, Starknet, Stacks, Immutable X, Dogecoin, Apecoin, Bitcoin Cash, Ordinals, Lido DAO, Stellar, Injective, Chainlink, Litecoin, Compound, Sei, Dymension, WOO Network, Algorand, Ethereum Classic, Cosmos, Ripple, Curve, BNB, Render Token, SingularityNET, JITO, Shiba Inu, Hedera, THORChain, Pepe, Worldcoin, Polkadot, Celestia, Axelar, Arkham, TRON, Decentraland, The Graph, EOS, Optimism, and more.

The markets are not limited to this as dYdX is continuously launching new Perpetual Contract markets.

dYdX is backed by prominent venture capital firms. Some of them are Andreessen Horowitz, a16zcrypto, Paradigm, Polychian, Kronos, DeFiance Capital, and more.

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