Pros
Cons
Quick Summary
| Headquarters Location | San Francisco, CA, US |
|---|---|
| Fiat Currencies Supported (through third party apps) | USD, AUD, GBP, CAD, EUR, NZD + 26 others |
| Total Supported Cryptocurrencies | 121+ |
| Trading Fees | 0.02% - 0.04% |
| Deposit Methods | Cryptocurrency, Banxa, Kado |
| Support | Twitter, Help Center Articles, Support Ticket |
| Mobile App | Yes - iOS, Android |
Founded by Antonio Juliano, a visionary who once engineered solutions at Coinbase, dYdX has become a mainstay of decentralized trading. The platform offers advanced trading options that rival even the most established traditional markets.
dYdX stands out as a trusted decentralized exchange. It appeals to an audience that craves the excitement of perpetual futures trading while valuing the security of blockchain technology. The cryptocurrency exchange is a platform where the trading volume showcases its success among decentralized platforms.
dYdX’s path is marked by continuous growth and innovation. It initially launched on the Ethereum blockchain and transitioned to its standalone blockchain, which was created with the Cosmos SDK. Its commitment to scalability, reduced gas fees, and improved transaction speeds remain at the core of its features.
About dYdX
The dYdX exchange is a non-custodial platform developed on the Ethereum network. It defines what trading platforms can accomplish, including lending services.
The implementation of ZK-Rollups, coupled with establishing its own blockchain (the dYdX Chain), demonstrates the combined characteristics of centralized and decentralized areas in one framework.
As dYdX migrates toward the Cosmos-based dYdX Chain, it carries a number of advantages, such as heightened capacity for trade execution, reduced transaction fees, and functionality specifically benefiting high-frequency traders. The inclusion of spot and cross-margined perpetual contracts on Ethereum’s layers 1 and 2 is also worth mentioning.
dYdX has a number of active social profiles including Twitter, LinkedIn, Discord, Reddit, Telegram and YouTube.
dYdX has a mobile app on both the Apple App Store and Google Play.
Trading Experience
On dYdX, traders are greeted with an interface that mirrors the practicality of centralized exchanges yet retains the uniqueness of decentralized trading. The platform supports multiple wallets, ensuring users can connect with the trading environment using their preferred wallets.
Advanced Margin Trading Tools
dYdX provides advanced margin trading tools, allowing traders to implement complex strategies. The platform offers minimum margin requirements to maintain leveraged positions, safeguards the integrity of the trading environment, and provides stability to pursue advanced trading strategies.
These features ensure that traders can pursue their strategies using advanced trading tools without compromising the platform’s stability.
Perpetual Trading on dYdX
Perpetual trading on dYdX, which allows traders to leverage their positions up to 25x, makes up a huge part of the cryptocurrency market. The platform’s version 3 achieved over $1 trillion in trading volume throughout 2023, proving its popularity and effectiveness in catering to perpetual futures traders. The partnership with StarkWare has been integral to this success, eliminating gas costs and enhancing platform efficiency.
On dYdX, perpetual futures contracts offer distinctive benefits, such as indefinite holding periods (due to the lack of expiration dates) and leverage options for various levels of conservative or aggressive trading approaches. These features make the platform suitable for traders with different risk tolerances.
Participants can opt between isolated and cross-margin trading for their risk management and exposure based on individual preferences. Consequently, dYdX’s perpetual contracts serve as an array of trading instruments that broadly appeal to the crypto trading space.
Mobile Trading with dYdX
The dYdX mobile app showcases the best of mobile trading technology. It features the full functionality found on the web platform, ensuring that users can access the same high-caliber trading tools even when on the move.
dYdX Fees
dYdX has a fee structure that caters to traders’ preferences. Notably, dYdX exempts trading fees for those whose monthly trading volumes do not exceed $100,000. This policy serves two purposes: rewarding individuals who trade frequently and inviting newcomers to try out the platform without being discouraged by heavy expenses.
To encourage higher trading activity on its exchange, dYdX uses a tiered maker-taker pricing model, which reduces fees for those with greater transaction volumes. As participants ascend through different levels of monthly trade volumes, they encounter a structured decrease in the costs associated with creating (maker) and filling (taker) orders.
dYdX vs. Centralized Platforms
In the context of cost analysis between decentralized and centralized trading venues, dYdX is recognized for its unique approach.
Centralized exchanges frequently highlight their elimination of direct gas fees to appeal to users. Meanwhile, dYdX adopts a distinct fee structure that incorporates these charges. Although trades and transfers on dYdX might incur higher costs due to gas fees at certain times, it’s often considered an acceptable compromise for accessing a decentralized platform’s heightened security and self-governance.
| Type | Fee |
|---|---|
| Trading Fee | 0.02% - 0.04% |
dYdX supports a range of different cryptocurrencies with varying withdrawal fees. When looking at Bitcoin, they don't charge anything above the standard Bitcoin network fee. Across all the crypto exchanges we've reviewed, the average Bitcoin transaction fee charged is 0.000381 BTC compared to the actual network fee of 0.000023 BTC. This means you are saving 93.86% on Bitcoin transactions by using dYdX instead of other exchanges.
dYdX has a maker/taker fee schedule which you can see below.
| Tier | Volume (30d) | Maker | Taker |
| I | < $1,000,000 | 0.02% | 0.05% |
| II | ≥ $1,000,000 | 0.015% | 0.04% |
| III | ≥ $5,000,000 | 0.010% | 0.035% |
| IV | ≥ $10,000,000 | 0.005% | 0.030% |
| V | ≥ $50,000,000 | 0% | 0.025% |
| VIP | ≥ $200,000,000 | 0% | 0.02% |
Security - Is dYdX Safe?
dYdX’s security measures form the basis of its reputation. With a track record free from user fund risks, dYdX has demonstrated its commitment to the safety and privacy of its users. The platform’s decentralized structure plays an important role in this, as it minimizes the risk to user privacy by eliminating the need for personal information collection. Additionally, dYdX enforces governance through a multi-signature wallet, which adds layers of security to the platform.
Smart Contract Safety
Smart contracts serve as the cornerstone of dYdX’s reliability and protection. The smart contracts at dYdX have been thoroughly examined by respected security companies, assuring an elevated safeguarding of user assets. Such thorough audits, together with internal tests, help prevent possible threats.
Transparency is also critical in security practices, and dYdX adheres to this by offering public access to its smart contracts and the corresponding audit findings. This approach permits any individual external verification regarding the platform’s safety protocols.
Non-Custodial Peace of Mind
Using a non-custodial framework, dYdX guarantees users complete control of their funds. This setup sets it apart from traditional exchanges by eliminating the need for an intermediary to manage users’ private keys.
For those who highly value control over their crypto assets, the appeal of this non-custodial model is obvious. It resonates with the core values embraced by blockchain advocates, which point to decentralization or the reduction of central points that can fail.
dYdX Customer Support
dYdX provides quick and practical assistance. This sets it apart from other exchanges, where users might wait weeks for help. Instead, dYdX aims to resolve queries really fast, with responses typically delivered within one to two hours of submitting a ticket.
An extensive array of online materials are also available to answer a broad range of user inquiries. Complementing this resource is the dYdX community, which actively engages in external forums and offers peer-to-peer assistance.
dYdX Support Channels
dYdX Tokens
The DYDX token is central to the dYdX platform as its governance token within their Layer 2 protocol. It gives users more than just ownership, it gives them voting rights in important platform decisions. Holders of the DYDX token can also enjoy reduced trading fees, which adds to its appeal.
dYdX Token Holders’ Privileges
Possessing DYDX tokens grants individuals a range of advantages that enhance their experience on the trading platform. Owners of DYDX tokens have access to earnings through rewards linked to their trade activities and are granted entry into trading leagues with weekly prizes. These incentives create an environment where proactive traders receive recognition, promoting competition and community cooperation.
Lending and Borrowing Dynamics
The dynamics of lending and borrowing in dYdX introduce a side of decentralized finance that reflects the principles found in its traditional counterpart. The interest rates often fluctuate according to ongoing changes in market demand and supply, which can be unexpectedly swift.
Regarding its services for lenders, dYdX is held by two principal pools where users can stake their digital tokens: the Liquidity Pool and the Safety Pool. Both are critical in emphasizing the framework that supports all lending activities across this decentralized exchange platform.
The platform provides attractively competitive interest rates for borrowers on dYdX. Typically, one could expect about 10% for stablecoins, while at times, ETH might attract an almost negligible interest rate. These conditions enable platform participants to increase their trading strategies by taking advantage of varying market movements.
How Lending Works on dYdX
Earning passive income by lending on dYdX is an uncomplicated process. Users lend their digital assets, like ETH, DAI, and USDC, to the platform, providing essential liquidity for borrowers who wish to carry out transactions. As compensation for this liquidity, lenders receive interest that can add up over time based on the volume of assets provided and the prevailing interest rates.
Borrowing Services
dYdX’s borrowing services are designed with the trader in mind, offering flexibility that caters to various financial strategies. Borrowers must maintain a collateralization ratio above 125% of the borrowed amount to ensure the stability of their positions. This requirement safeguards against market volatility and protects the borrower and the platform from undue risk.
dYdX Governance and Community Engagement
The dYdX governance framework shows its commitment to decentralized and community-led development. The platform has established the foundations for becoming a decentralized autonomous organization (DAO) by introducing the DYDX governance token, thereby transferring decision-making capabilities directly into the hands of its users.
By using Governance Forums, Development Improvement Proposals (DIPs), and smart contracts that capture voting power data, dYdX ensures an inclusive environment where member participation is welcomed and encouraged.
Building the dYdX Community
Allowing users to earn DYDX tokens through activities like trading or staking digital assets encourages active participation in the community. This approach fosters a dynamic user base and deepens investment in liquidity provision and governance processes.
How to Sign Up on dYdX
- Create Account - Visit the dYdX website and fill out the create account form. You'll need to include a valid email, set your password and type in other details like your phone number and name.
- Verify Account - Confirm your email, you should get an email asking you to verify your account creation.
- Transferring Funds - Once your account has been verified, you'll be able to deposit using the methods listed below. Remember this exchange only supports depositing fiat currencies through third party apps it supports.
- Start Trading Crypto - That's it! You should now have everything in place to start trading.
Deposit Methods
dYdX Alternatives
1inch
Total Supported Cryptocurrencies
1000+
Trading Fees
0%
Fiat Currencies Supported
USD, AUD, GBP, CAD, EUR + 40 others
OKX
Total Supported Cryptocurrencies
329+
Trading Fees
-0.005% - 0.10%
Fiat Currencies Supported
USD, AUD, GBP, CAD, EUR, NZD + 85 others
Bancor
Total Supported Cryptocurrencies
95+
Trading Fees
0.1%
Fiat Currencies Supported
USD, AUD, GBP, CAD, EUR, NZD + 70 others
Final Thoughts
The dYdX platform showcases cutting-edge developments in the decentralized finance sector. Offering advanced trading tools, well-designed fee structures, and a dedication to security and user independence, dYdX delivers a rewarding trading experience.
dYdX’s commitment to governance, led by its community, positions it as one of the leaders in the DeFi industry. It is an attractive option for experienced traders and newcomers seeking a reliable decentralized exchange.
dYdX FAQs
While no online platform can be guaranteed completely safe, dYdX takes several measures to enhance security, such as smart contract audits. Users should also practice personal security measures to protect their accounts.
dYdX may have withdrawal fees influenced by network activity and underlying blockchain fees. Users should review the current fee structure on the dYdX platform before initiating a withdrawal.
dYdX was founded by Antonio Juliano. It is a decentralized platform run by a team of developers and governed by a community of token holders. Decisions are often made through a decentralized autonomous organization (DAO) structure.
The maximum withdrawal limit from dYdX can vary depending on several factors, including account verification level and the current liquidity of the platform. Users should consult the dYdX website or support for the latest information on withdrawal limits.
dYdX differs from other decentralized exchanges by offering advanced trading options like perpetual contracts, margin trading, a non-custodial setup for user fund security, and a community-driven governance model. Its collaboration with StarkWare and the move to a standalone blockchain using Cosmos SDK also enhance its transaction output and decrease gas fees.
dYdX User Reviews
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Methodology
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About The Authors
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