dYdX (DYDX)

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You can deposit or withdraw DYDX from Bitso using the Ethereum (ERC-20) network exclusively. Make sure you choose this network when transferring your coins.

 

What is dYdX (DYDX)?

dYdX is an open-source decentralized exchange (DEX) with smart contract functionality. It allows users to borrow, lend and trade cryptocurrency assets. DYDX is the governance token of the DEX’s layer 2 protocol. Founded in early 2017 by Antonio Juliano, dYdX has grown to host 64,000 unique traders and $11B in total volume according to its website. dYdX distinguishes itself from other DEX by offering margin, which allows users to increase their buying power by using leverage, to traders. Additionally, it offers the trading of perpetuals, a type of futures contract with no set expiry.

 

What makes it unique?

  • One of the only DEX to support margin trading, a feature that lets you trade with more buying power than you have available, via leverage;

  • Maximum leverage is 25x on synthetic assets;

  • Depositing funds into dYdX immediately starts earning users' interest;

  • Built on an order book model as opposed to other DEX which uses AMMs (like Uniswap);

  • Provides retroactive mining benefits which is a DYDX token reward for users interacting with the protocol in the past.

 

Purpose

dYdX is a DEX that provides some of the most advanced financial tools. For users looking to unlock some serious trading such as futures contracts and margins, dYdX provides a one-stop shop. DYDX is an ERC-20 governance token that serves to help operate the Layer 2 protocol. It can be used to gain mining rewards and participate in staking pools. DYDX token holders can propose changes to dYdX’s Layer 2. This is a scaling solution in place to eliminate gas costs, increase transaction speeds, reduce trading fees, and lower​​ minimum trade sizes on the protocol. DYDX is capped at 1,000,000,000 tokens which will be dispersed over 5 years starting in September 2021. Here is a good place to learn more about the tokenomics of DYDX. 

 

Sources of knowledge


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