What is dYdX (DYDX)?
DYdX is a decentralized platform created for borrowing and lending based on Ethereum smart contracts. In simple words, the dYdX platform allows users to take loans and place bets on the future prices of popular cryptocurrencies. The dYdX user has opened spot, futures and margin trading in several dozen trading pairs.
DYdX combines the security and transparency of a decentralized exchange with the speed and usability of a centralized exchange. This is in addition to all the functions that are already offered in the existing product borrowing, lending and margin trading.
The decentralized cryptocurrency exchange dYdX also has its own token - DYDX.
Where do dYdX come from?
The dYdX platform was founded in 2017 by Antonio Giuliano, a former Coinbase and Uber developer.
In 2019, the platform provided clients with the possibility of margin trading with a maximum leverage of 1: 5. The available trading pairs for this type of transaction were limited to the DAI, Tether and Ethereum cryptocurrencies. By launching margin trading, the dYdX platform has become unique. Before that, no decentralized platform could provide users with margin trading.
In the future, the platform began to rapidly expand and develop, adding new services (for example, loss management - stop loss) and new trading pairs.
dYdX became the first decentralized platform to provide its clients with such tools as margin trading, or cryptocurrency derivatives and options trading.
How dYdX works?
It is not necessary to register on the platform to work with the platform. You just need to connect your Ethereum wallet to it. The platform also supports Metamask, Ledger / Trezor, Coinbase and others using WalletConnect and Web3.
The dYdX decentralized platform has three main functions:
- Placement of deposits.
To borrow on dYdX, simply click on the tab of the asset you want to borrow and then specify the amount and other parameters. It is important to pay attention to the fields with interest rate (APR) and collateral (Account collateral).
It is noteworthy that there are no mandatory minimums or maximums for lending on the platform. Technically, the maximum is the total amount of funds in the pool.
At the same time, interest rates are floating and are updated instantly depending on demand. Consequently, the interest rate can be 0% and 50% per annum.
Received in debt are transferred to the linked wallet. You can repay the loan at any time. There are also no fixed maturities for the loan - the main thing is that the level of collateral is above the liquidation threshold (up to 85%). If the level rises above the designated chapel, then the position will be automatically liquidated. All funds remaining after this operation will be returned to the user minus a 5% liquidation penalty.
On dYdX, you can not only take out a loan, but also place funds on a deposit.
To start earning to invest in dYdX, you need to add funds to the balance using the Ethereum wallet. Income starts to accrue automatically, the balance is updated in real time.
The interest rate on deposit funds is also floating and is set slightly below the interest rate for borrowers. 5% of all interest charges go to the insurance fund, which will maintain the stability of the protocol in the event of strong volatility.
Interest is paid regularly. They change depending on supply and demand, as well as the interest rate on loans.
To start trading, you must first deposit funds in the desired currency into your account.
There are three types of trading supported on the dYdX exchange, and there is a separate account for each:
- Spot. Here you can trade: ETH-DAI, ETH-USDC and DAI-USDC. The usual market, limit and stop orders are available for trading.
- Margin. It is used for the same currency pairs, but with up to 1: 5 leverage.
- Perpetual contracts. The ability to trade BTC-USDC contracts with no expiration date with up to 1:10 leverage.
Commissions differ for maker and taker.
A maker is the one who places an order in the order book and creates market liquidity accordingly. Its commission is always less than or equal to zero in order to stimulate the creation of limit orders.
A taker is the one who fills the order, removing liquidity, so his commission is higher.
What makes dYdX unique?
The dYdX platform has many unique features that set it apart from the competition. The platform offers unique opportunities for the DeFi ecosystems. Yes, the possibilities of spot and margin trading are still limited to only three common assets (ETH, DAI and USDC), but in the future this list can be expanded. The main thing is that the platform has the necessary basis for this.
The unique lending algorithm used on dYdX is considered the most low-risk and passive. With dYdX, lenders automatically receive interest every time a new block is mined. Any funds deposited into the platform will receive interest on every block at all times and can be withdrawn at any time without any minimum requirement. Since all loans are collateralized and face the threat of liquidation, the loan will always be repaid.
Where to buy dYdX and How to Buy dYdX (DYDX)?
You can buy DYDX tokens directly on the dYdX exchange and on many popular crypto exchanges: Binance, MEXC Global, OKEx, Gate.io, Poloniex, Huobi, Uniswap, Sushiswap, etc. In September, immediately after listing on Binance, the cost of the DYDX token soared by more than 1100%.
It is noteworthy that 7.5% of the issued tokens were distributed among users of the dYdX platform, who performed at least one operation on it.
How to start investing in dYdX in South Africa?
dYdX is a decentralized platform that is available anywhere in the world with an internet connection. Therefore, you can work with the platform from anywhere. You can freely buy dYdX in South Africa, India, Canada, Germany or any other country. Therefore, invest in dYdX in South Africa is as easy as investing in any other country.
Now the platform has been translated into 5 languages, but the developers are working on expanding the list of supported languages.
Is it safe to invest in dYdX online?
Security is fundamental to the design of the dYdX platform. Therefore, the developers have made it possible for dYdX users to have full control over their funds at any given time.
There are no middlemen holding private keys or other third parties that can harm your funds. When funds are deposited on dYdX, they are controlled by smart contracts.
The security of smart contracts is constantly checked through internal testing and audits from renowned companies such as Zeppelin Solutions and Bramah Systems. The contracts are open source and can be verified by anyone. In other words, buy dYdX in South Africa, you can check the safety of your funds at any time.
Administrator rights are limited to adding new assets, changing the calculation of interest rates, or installing new applications to track prices.
Is dYdX a good investment?
dYdX is a unique new product in the DeFi ecosystem. Since its launch, the dYdX platform has built an impressive track record. It is one of the few major DeFi lending protocols that has never put user funds at risk. No investor has lost funds invested in the pool through dYdX.
An investment in dYdX is an investment in the future. Investing in dYdX in South Africa is a good opportunity to make money.
Should traders invest in dYdX?
Should traders invest in dYdX? The answer to this question is very simple. In September 2021, the DYDX token has grown by more than 1,100%. In other words, by buying tokens worth $ 100, you would receive $ 110,000.
Why has the value of the token increased so much? Because the project has long been recognized and famous. DYDX is not just a token, it is a platform with large and promising functionality, which has no analogues yet. Therefore, the token retains good growth prospects.
Over the past few years, the dYdX platform has grown and developed exponentially and has been able to offer a fascinating, innovative and workable product.
dYdX aims to facilitate the leveraged trading of cryptoassets in a decentralized environment, a significant advance in the emerging DeFi arena. With dYdX, users can easily open and / or close perpetual contracts with up to 1:25 leverage, and trade ETH-USDC and ETH-DAI with up to 1: 5 leverage.
In a sense, dYdX is fundamentally changing the way traders interact with DeFi apps and decentralized exchanges (DEX) in general. The dYdX platform provides users with the infrastructure they need to perform functions that were previously only available on centralized exchanges (CEXes).
Therefore, the dYdX platform currently occupies a unique place in its niche, as there are still very few decentralized protocols offering derivatives or margin trading in the market. But even those solutions that are available cannot compete on a par with dYdX.
The success of the project is also evidenced by the fact that in October 2021 the DEX exchange dYdX overtook the trading volumes of Coinbase in the spot market. By the way, Coinbase is the largest American crypto exchange. For comparison, the trading volume on the dYdX spot market is about $ 5.7 billion, while on Coinbase this figure is about $ 3.7 billion.
Many experts associate the growing popularity of dYdX with the influx of new users from China, where government restrictions on mining and cryptocurrencies were previously introduced.
The platform developers say they are not going to stop there. Even with a small number of employees, over the next three to five years, the developers want to make the project the largest cryptocurrency exchange in the world. The ambitious goal is to overtake Binance, which generates an impressive $90 billion per day in revenue.
How to Buy dYdX right now?
The dYdX platform has long established itself as a reliable and innovative product, therefore, the most popular cryptocurrency exchanges and decentralized platforms supporting the ERC-20 standard have listed the DYDX token.
Here are just some of the platforms where you can buy DYDX: Binance, MEXC Global, OKEx, Gate.io, Poloniex, Huobi, Uniswap, Sushiswap, etc.
Another investment option is through an online brokerage platform. Online trading platforms allow you to trade using CFD contracts, which, in turn, do not provide for the ownership of an asset, but allow you to speculate on the expected rise in the price of an asset.
Convenience is an important advantage of trading through online platforms. To register on the trading platform, you do not need to go through a lengthy registration and verification process. You can start working with the platform almost instantly, having access to all the functionality and tools.
Invest in dYdX today - one of the most promising cryptocurrencies!