Introduction

dYdX (DYDX) is a decentralized exchange platform (DEX) running on the Ethereum blockchain.
It offers its users the ability to access complex financial tools, such as margin trading and futures, without the need for a traditional intermediary, such as a bank or broker.
This means that dYdX users can trade directly with each other.
This gives them total control over their funds and greater transparency in their financial operations.
Launched in 2017 by Antonio Juliano and Brendan Chou, the platform has quickly established itself as a benchmark in decentralized finance(DeFi) thanks to innovative trading features such as perpetual contracts, margin trading, and flash borrowing. dYdX makes advanced financial tools easier for everyone to use, enabling users to trade with leverage and bet on what asset prices will be in the future.
Margin trading increases investment capital by borrowing money from a broker, offering the possibility of greater gains but also potentially greater losses.
Flash loans are ultra-short loans that use securities as collateral to obtain quick liquidity, often exploited to seize short-term market opportunities.
With a market capitalization of $701 million and ranking 70th on CoinMarketCap, dYdX is one of the top 100 projects in terms of value on the cryptocurrency market. Its price on August 22, 2024 is $1.12.

The history of the Dydx team

Founded in 2017 by Antonio Juliano, Brendan Chou and Zhuoxun YinThe dYdX team is made up of talents from prestigious institutions such as Stanford, and renowned companies such as Facebook and Google.
Antonio Juliano gained significant experience at Uber and Coinbase before founding dYdX.
Brendan Chou also has a background as a software engineer at Facebook.
In 2019, dYdX successfully raised $20 million from influential investors such as Andreessen Horowitz and Polychain Capital, as well as Olaf Carlson-Wee, one of the founders of Coinbase.
In 2023, dYdX underwent significant developments.
Ahead of a massive token release worth $500 million, the native DYDX token saw an increase of over 20% in 24 hours!
This indicates the growing interest on the part of investors.
Currently, the dYdX development team of over 40 experienced engineers is dedicated to the continuous improvement of the platform and the addition of new features.

How does Dydx work?

dYdX is based on smart contracts hosted on Ethereum, guaranteeing transparent, autonomous, irreversible transactions without intermediaries.
Its system incorporates an AMM protocol, similar to Uniswap, where users feed liquidity pools to support a decentralized order book.
In other words, a system that enables users to pool their money, thereby facilitating automatic, decentralized trading. An AMM (Automated Market Maker) protocol is a system that enables crypto-currencies to be traded automatically on a decentralized finance platform (DeFi) without the intervention of a human intermediary.
It uses algorithms to determine asset prices and maintain liquidity.
This configuration enables traders to exchange various crypto-currencies, including BTC, for stablecoins or other cryptos, thus promoting greater flexibility and accessibility within the dYdX DeFi ecosystem.

dYdX strategic partners

dYdX has teamed up with leading partners to strengthen its infrastructure and service offering.
StarkWare, with its ZK Rollups solutions, has significantly enhanced dYdX’s scalability.
Another important partner, Chainlink provides decentralized oracles, essential to the operation of the platform’s smart contracts. Brave Browser has integrated dYdX to offer DeFi services to its users.
Finally, the partnership with Ledger has enabled the integration of hardware wallet support on dYdX, increasing security for users. These strategic collaborations position dYdX as a bridge between decentralized and traditional finance.

What does version 4 (V4) of dYdX offer?

In 2023, dYdX continues to play a major role in the decentralized exchange ecosystem (DEX), capitalizing on the improvements introduced by its version 4 (V4). V4 represents a significant technological milestone, thanks to its adoption of Starkware’s « Layer 2 » technology.
This adoption has considerably improved the platform’s scalability and speed, which in turn significantly reduces transaction costs.
During the year, dYdX continued to optimize its user interface to make trading even more accessible, while maintaining the advanced tools and functionalities required by professional traders.
The integration of new asset classes, such as WBTC (a version of Bitcoin that runs on the Ethereum blockchain) and other popular tokens, has expanded the trading options available to users.
Reducing transaction fees remains an important issue.
The challenge is to attract and retain users in a competitive environment where the issue of costs is highly sensitive.
Strategic partnerships with market makers (players who facilitate trading by constantly buying and selling assets) and other financial institutions have been strengthened in recent months.
This has helped maintain high liquidity and offer optimal trading conditions.
These alliances remain crucial to ensuring competitive prices and rapid order execution.

Store your DYDX

We recommend storing your DYDX tokens in an ERC-20 compatible wallet, such as MetaMask.
For added security, you can also opt for a hardware wallet, such as Ledger.
To operate on the dYdX platform, simply connect your personal Ethereum wallet.
You’ll be able to sign all transactions securely without ever relinquishing ownership of your tokens.

What are Dydx tokens used for?

The DYDX token serves as the central pivot in the dYdX ecosystem, taking on several essential functions and giving its holders an active role in governance by enabling them to vote on protocol changes and new features.
A particularly attractive feature of the platform is the rewards system, which rewards traders and liquidity providers with DYDX tokens in exchange for their active participation in the market.
The DYDX token incorporates a deflationary mechanism, meaning that a portion of the fees generated by transactions on the dYdX platform is destroyed or « burned ».
This process of token destruction reduces the total supply in circulation, which can, according to the economic principles of supply and demand, increase the value of the remaining tokens if demand remains constant or increases.
DYDX can also be used as collateral to secure loans on dYdX, making the token even more useful.
This collateral feature can increase demand for DYDX, as users need to hold it to access lending services, which can also help boost its value on the market.

Tokenomics

With limited supply and a balanced distribution between all players, DYDX is designed to maintain a robust and balanced token economy.

What are Dydx’s projects?

In 2024, dYdX is focusing on developing its decentralized trading platform by implementing the transition to an independent blockchain, dYdX Chain, based on the Cosmos SDK.
This project aims to improve the efficiency and decentralization of the protocol while reducing transaction costs.
dYdX also plans to introduce new trading functionalities, increase the number of asset pairs available and enhance staking capabilities for users, while continuing to optimize the user experience for professional and retail traders.

How to buy Dydx?

1. Go to your Coinhouse application and log in to your personal space or create an account.

2. Go to the buy/sell section.

3. Select the amount you wish to invest, and the currency of your choice (in this case DYDX).
   Buy DYDX tokens by exchanging them for USDC tokens.

4. Once your transaction has been validated, you’ll find your DYDX in your crypto wallet.

Coinhouse's opinion

Coinhouse recognizes dYdX as a major player in the world of decentralized trading.
As of September 17, 2024, the price of dYdX is €0.81 (token price).
Its strong market presence and growing adoption, reinforced by a significant number of active users, demonstrate the attractiveness of dYdX in 2024.
In the medium term, dYdX is developing other projects, such as the expansion of its decentralized trading services and its increased integration into the DeFi ecosystem.
In particular, these new projects will support dYdX’s growth.
In the exciting adventure of crypto-assets, Coinhouse positions itself as an essential companion, providing clarity and support at every stage of your journey.
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With our in-depth expertise and cutting-edge technology, we offer tailor-made support, helping you to confidently navigate the crypto-asset space, especially assets such as DYDX.
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