Getting Paid to Trade Cryptocurrencies: dYdX’s Shock Operation

All work deserves pay – In recent years, Decentralized Finance, or DeFi for connoisseurs, has undoubtedly been among the most decisive innovations related to blockchain technology. Secure access to traditional financial services in a decentralized and uncensored manner is truly a true revolution for crypto-investment. Key players in this ecosystem, so-called “decentralized” exchange platforms allow users to make acts anonymously directly from a private wallet. This is the case dYdX, reference DEX which we will cover in this article.

Le Journal du Coin offers you this promotional article in collaboration with dYdX.

The concept

DYdX, operating on the StarkEx network, a layer 2 of Ethereum, is therefore a decentralized exchange platform (DEX in abbreviated English). Specializing in derivatives, it offers margin trading as well as perpetual contracts and also provides the opportunity to gain passive income through effort. Moreover, it allowst its users to compete against others through contests.

Its interface is very easy to learn, very similar to those found on large centralized exchanges. The fundamental difference is that users can remain anonymous, and they own the private keys to the wallet where their money is stored.

Ergonomic and clear, the dYdX interface is similar to that of centralized exchanges

dYdX is built around two units:

  • A decentralized entity, the dYdX Foundation, Decentralized Autonomous Organization (DAO in English). It is the community that proposes and votes on all changes to the platform.
  • A centralized unit in the US with a team and employees. She takes care of the technical maintenance and the implementation of the developments voted by the dYdX Foundation.

The story of the platform and the team

Team, investors and users

The protocol was born in July 2017 on the initiative of Antonio Julianno, a developer who previously worked for Coinbase and Uber. Starting from a blank slate, he was able to quickly assemble a competent team and attract the attention of investors. Today supported “by the best”, the protocol has already raised several million dollars (65 million in June 2021) to expand.

By raising more than $65 million from the heavyweights of the crypto universe, dYdX has proven the relevance of its approach
Many major players in the ecosystem are present

dYdX has won over 25,000 merchants with daily trading volumes that regularly exceed $1 billion. This makes it the first DEX relative to volume according to CoinMarketCap.

The total blocked value (Total value locked= TVL) on the stock exchange is about 400 million dollars. Based on this criterion, Defillama places dYdX in the top 15 of DeFi on Ethereum.

Development of the protocol

Basically, dYdX was implemented directly on the blockchain Ethereum. The platform then offered more products than currently spot trade, loans and admissions. These services have been suspended to allow platform migration to StarkEx. In constant development, dYdX should offer them again at 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-tier Ethereum scaling solution known as “Layer 2”. It allows dYdX to benefit from the security and composition of Ethereum while offering almost zero transaction fees. Schematically, orders are aggregated before being sent anonymously and securely on the Ethereum network using technology Zero-Knowledge Rollup (ZK Rollup). Thus, transactions are carried out instantly and merchants no longer have to pay gas fees. to validate them!

StarkEx enabled dYdX to improve its performance and become competitive in terms of transaction costs
Layer 2 provides more speed at very low cost

However the team remains in constant search for maximum decentralization. Anticipating a performance and centralization problem announced for layer 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 protocol’s entry into its fourth version (V4) and should be effective by the end of 2022.

dYdX products

perpetual contracts

These are the flagship products of the platform. dYdX offers perpetual contracts on 36 different crypto pairs. That acts carried out via an order book. There are different types that users can choose according to their strategies:

  • limit order
  • market order
  • Stop limit
  • Stop market
  • subsequent stop
  • Take the profit margin
  • Take Profit Market
Derivatives are specialties that dYdX is particularly fond of, allowing you to invest in BTC or ETH
dYdX is a platform that has become an expert in crypto derivatives

It is possible to set a leverage of up to x20 to increase profit … or loss. 3 assets can serve as collateral: ETH, DAI and USDC. Transactions can be executed in isolation to tie up only a portion of your funds, or combined to collateralize your entire account.

Expenses

The platform fees are simple and minimal. For traders whose volume does not exceed $100,000 during the last 30 days, dYdX takes nothing. In addition to that, fees drop from a million dollar trade volume.

Transaction fees are extremely low compared to competition from centralized crypto exchanges
One of dYdX’s most important qualities lies in its minimal cost

The platform does not tax deposits or withdrawals. However, you have to pay the gas fees for the Ethereum blockchain. If you deposit more than 500 USDC on your first deposit and more than 1000 USDC for subsequent ones, 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 for protocol development proposals. It also offers discounts on platform fees andincrease hit rewards by staking them.

Users exceeding $100,000 in volume Act receive rewards in DYDX that allow you to cover between 80 and 120% of their costs on average.

Effort

dYdX allows you to stake two tokens:

  • USDC to participate in the liquidity of exchanges on the protocol.
  • DYDXs to participate in security.
Stakes generate crypto-yields while Blockchain networks are secured
Effort generates passive income

In both cases, the reward is paid in DYDX.

Contests and NFTs

For the most competitive, dYdX offers the opportunity to compete against other users. The best get NFTs (them Hedgies), which allows you to go to the next third regarding the fee reductions offered by the platform. For example, a user who has 5000 dYdX tokens and a Hedgie ends up at Tier 4 (15% discount) instead of Tier 3 (10% discount).

NFT Hedgies are rewards that provide benefits such as reduced trading fees on your crypto trades
Hedgies are NFTs that enhance your customer experience on dYdX

In addition to being entitled to privileges on the platform and rewards in dollars, these little digital creatures 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 is not finished being talked about. Many features have already been announced, as well as the return of spot trading for the V4 is approaching. At a time when regulation is vindictive, many investors want to remain free. In that sense, there is no doubt that the protocol will attract more and more users. Why not you?

Take advantage of current market conditions to quietly accumulate Bitcoin. Register now at dYdX and enjoy incredible returns with the decentralized leader in derivatives (trade link).

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