dYdX – one of the main decentralized Cryptocurrency exchange focused on perpetual contracts trading. It runs on the Ethereum blockchain. Trading volumes according to Coinmarketcap at the time of writing surpass $1.2 billion per day. To improve scaling, dYdX, together with StarkWare, created a layer-2 protocol with the StarkEx engine – so trading operations for clients became much faster and cheaper, and the minimum threshold for making a transaction was also reduced. Users have the opportunity to trade with up to 25x leverage.
Web Site: https://dydx.exchange/
The editors of cryptomais.com provide a detailed overview of the dYdX DEX broker and its features.
general information
| Exchange name | dYdX |
|---|---|
| Official website (mirror) | https://dydx.exchange/ |
| Services | Decentralized cryptocurrency derivatives trading |
| Release year | 2017 |
| Country of registration | USA |
| Enterprise | dYdX Trading Inc. |
| Registration address | 44 Montgomery Street, Suite 2310 |
| Mobile App | No |
| Daily trading volume on 02/01/22 | 1.224.241.968$ |
| Working with decree | No |
| Verification | No |
| Trading fee | From 0% |
| Number of contracts | 28 |
| To enjoy | Until the 25th |
| Token de exchange | DYDX |
| Deposit Methods | Criptomoedas |
| Wallets for connection | Metamask imToken, Coinbase Wallet, Trust wallet Token Pocket, Iris Wheel Wallet, Ledger. Connection via WalletConnect is also supported |
| Brazilian language | Partially |
| Reference materials | https://help.dydx.exchange/en/ |
| To stirrup | Chat and form on the website (in the “more” menu of the trading application) |
| Spring | https://github.com/dydxprotocol/ |
| API | I will eat |
| Blog | https://dydx.exchange/blog/ |
| Social media | https://twitter.com/dydxprotocol https://discord.gg/Tuze6tY https://www.youtube.com/c/dYdXprotocol https://www.reddit.com/r/dydxprotocol https://linkedin.com/company/dydx |
Technical characteristics
The dYdX decentralized exchange is powered by software from StarkWare, a company specializing in developing zk-STARK solutions (increasing the scalability of blockchain networks by moving computations off-chain). Computational speed and integrity are achieved through secure post-quantum proofs.
zkSTARKS technology is a unique version of zkSNARKS, a type of ZK-Rollup technology that expands the capabilities of the exchange in extending trade settlements. At the same time, security is determined by the functions of the underlying Ethereum blockchain.
The integration combines proofs of data integrity and on-chain data arrival within a non-custodial protocol. Trades are made in class 2, and from time to time the system publishes zero-knowledge proofs to the Ethereum smart contract to prove the validity of the state change.
ZK-Rollup is a mechanism that “bundles” transactions into a package, which is then published on the Ethereum blockchain along with a proof that confirms the validity of the transactions. ZK-Rollup also provides information about the balances of users from the second to the first level. The technology offers high throughput, instant transaction completion, confidentiality, and business self-sufficiency.
How to get started with dYdX exchange
dYdX is a decentralized application that requires a connection using a web3 wallet to function. No registration or verification is required; all operations are performed anonymously by users.
To connect, you need to select and create one of the wallets listed below and click “Connect» in the upper right corner of the trading platform https://trade.dydx.exchange/:
- Metamask
- imToken
- Trust wallet
- Coinbase Wallet
- TokenPocket
Or in other words, it is possible to connect other wallets that are not on the list through a universal system. Wallet Connect.
Trading Perpetual Contracts on dYdX
Trading operations can only be started after registration is completed, which means depositing funds into a wallet connected to the protocol. There is no gas fee for transactions, since transactions are carried out on level 2. However, the broker has its own commission in the form of a certain percentage of each transaction.
Markets with these cryptocurrencies are available for trading (list will be expanded): ETH, BTC, SUSHI, ATOM, YFI, CRV, AVAX, MATIC, MKR, SOL, ZRX, FIL, UMA, AAVE, UNI, COMP, SNX, 1INCH, ALGO, LINK, DOT, XMR, ZEC, DOGE, ADA, BCH, EOS, LTC.
Types of orders available on the platform:
- Market. The order is executed immediately at the current price from the order book using the matching mechanism. For a transaction, simply enter the amount and select the appropriate leverage.
- Limit. An order that will be executed at a certain (or more profitable) price. Such an order can wait in the order book for a certain time, which is set at the time of creation. The default is 28 days. If during this period the price does not reach the required level, the registration will be involuntarily canceled.
- Stop limit. When the cryptocurrency rate exceeds the specified stop price, the system will automatically place a limit order to buy or sell. This mechanism is useful for limiting losses on positions in both long and short trades.
- Trailing stop. A type of order that aims to protect profits. The position remains open and generates profit as long as the price moves in the desired direction. This is a hybrid between a stop order and a limit order, and is self-updating according to the market situation.
- Profit limit. The trader specifies the exact price at which the opportunity position must be closed to make a profit.
When trading on margin, collateral is stored in USDC stablecoins (displayed in US dollars, since 1 USDC = 1 USD). The dollar is the quoted asset for all represented perpetual markets.
The default is cross margin. If there is a need to create isolated margin, this can be achieved by creating separate accounts (new wallet addresses).
Fees and discounts
The dYdX platform charges its own fees for each order, although the client is exempt from gas fees. Exchange fees can be reduced by increasing trading volume or holding DYDX tokens in your wallet.
Fee structure based on user trading volume:
- Tier 1 (up to $1,000,000 in 30 days). Worker 0.05%, borrower 0.1%.
- Tier 2 ($1,000,000 to $5,000,000). Worker 0.04%, borrower 0.09%.
- Tier 3 ($5,000,000 to $10,000,000). Worker 0.03%, borrower 0.08%.
- Tier 4 ($10,000,000 to $50,000,000). Worker 0.015%, borrower 0.075%.
- Level 5 ($50,000,000 to $200,000,000). Worker 0%, borrower 0.07%.
- VIP level (from $200,000,000). Worker 0%, taker 0.06%.
Maker is the person who places a limit order. Taker is the person who places a market order and closes a limit order.
You can get a further discount on commission fees if you hold the project’s native token in your wallet – DYDX (analysis). At the time of writing this article, the market value of one token was $8.6.
Discount structure based on DYDX balance:
- 100 DYDX – 3%
- 1000 DYDX – 5%
- 5000 DYDX – 10%
- 10.000 DYDX – 15%
- 50.000 DYDX – 20%
- 100.000 DYDX – 25%
- 200.000 DYDX – 30%
- 500.000 DYDX – 35%
- 1.000.000 DYDX – 40%
- 2.500.000 DYDX – 45%
- 5.000.000 DYDX – 50%
Data may be subject to change, see the latest information on the exchange's official website: https://help.dydx.exchange/en/articles/4798040-perpetual-trade-fees
Advantages and disadvantages
Frequently asked questions
Conclusion
dYdX makes working with decentralized finance much easier for different categories of users. The second-tier solution eliminates the need to pay a gas commission every time a trade is made; the trader is charged only the trading commission set by the platform itself, which is also quite fair. It is possible to open positions with up to 25x leverage and control risks using a diverse selection of order types. Projects like this are important for the development DeFi industry as a whole, as they reduce the barrier to entry and increase ease of use for beginners – a simple and intuitive interface, significantly similar to that used in CeFi also contributes to this.