03 Apr 2025

light mode

What is dYdX? Platform review

What is dYdX? Platform review

dYdX is a decentralized exchange hosted on the Ethereum blockchain with an eponymous governance token.

dYdX is not a regular DEX. The platform offers its users to trade derivatives (features) with leverage on margin trading. The exchange does not require KYC, like other centralized crypto exchanges. To start trading on dYdX, users need to connect their wallets (for example, Metamask or Trust), sign up, and verify their email.

dYdX was launched in 2021. The project was backed by A16Z, Spartan, Polychain, and other well-known investment funds. A noteworthy detail is that the project rewarded its users with a big-budget retroactive drop before they got their token listed on crypto exchanges. Users who traded $200-300 in the past received $30-50K in dYdX tokens at the time of listing on September 8.

Investment funds that backed dYdX

Investment funds that backed dYdX

Once the wallet is connected, you need to create multiple digital signatures for the vault to sync with the exchange. After that, you will need to deposit funds to buy DYDX. It can be USDC, USDT, Ethereum, DAI, MATIC, and UNI.

The project’s architecture is like that of many crypto exchanges. It equips users with a live price chart, order book, details on trading positions, and transaction history. The platform supports different order types like Limit, Stop Limit, Trailing Stop, and Take Profit. 

The portfolio tab shows open orders and cryptocurrency available for trading. Below goes the rewards blocks, profile settings, competitions and leagues, DAO management tools, and additional information, including documentation, statistical charts, social media sites, privacy policy, and customer support.

dYdX Dashboard

dYdX Dashboard

Ethereum transaction fees are pretty high. dYdX employs StarkWare’s unique solution, which allows trading with zero gas fees (except for percent-based trading fees). 

Technically, dYdX operates on the Layer 2 Ethereum blockchain. StarkWare provides low, sometimes even zero, fees without sacrificing security or privacy. There is no need to pay miners for each transaction, transactions are executed instantly and confirmed on the blockchain “retroactively” within a few hours.

Features of dYdX

Features of dYdX's StarkWare integration

StarkWare will soon release its STARK token, a portion of which will be distributed to dYdX holders under a retroactive drop.

dYdX is set about developing its own dYdX V4 blockchain, based on the Tendermint PoS protocol with the ability to use the Cosmos SDK. This will create a decentralized autonomous order book and matching mechanism that can be scaled to increase bandwidth and the number of orders.

The dYdX native token is traded on Gate, WhiteBIT, FTX, Huobi and many other major exchanges. Token holders can trade with reduced fees, stake dYdX at 13% p.a., manage the protocol, and vote on changes. The most active traders regularly share a reward pool, which is distributed to token holders as an additional incentive.

The current dYdX price is $1.6. The project’s market cap of $220 million ranks the project 161st among cryptocurrency tokens, according to Coingecko.

dYdX price movement (Coinmarketcap)

dYdX price movement (Coinmarketcap)

The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.

Articles by this author
South Korea’s 7-Eleven to Accept CBDC Payments in a Pilot Program

South Korea’s 7-Eleven to Accept CBDC Payments in a Pilot Program

South Korea’s 7-Eleven stores will accept CBDC payments between April 1 and June 30 as part of a pilot program to test the Bank of Korea-issued digital currency.

Anahit Avetisyan
GameStop Raises $1.5B, Eyes Bitcoin Investment

GameStop Raises $1.5B, Eyes Bitcoin Investment

GameStop has completed a $1.5 billion convertible notes offering, which may allow the company to add Bitcoin to its reserves under its updated investment policy.

Dmytro Psevdonimenko
Bitcoin Hits $85K Again as Traders Eye U.S. Tariff Risks

Bitcoin Hits $85K Again as Traders Eye U.S. Tariff Risks

BTC rises on speculative moves amid geopolitical and macroeconomic uncertainty, with risk-off strategies shaping the new terrain.

Anton Kryshtal
SMBC Partners with Ava Labs for Stablecoin Launch

SMBC Partners with Ava Labs for Stablecoin Launch

SMBC, one of Japan’s leading banks, has announced plans to launch a stablecoin in collaboration with Ava Labs and Fireblocks. Pilot testing is set to begin in 2025, with a full launch scheduled for 2026.

Vlad Vovk
Hot on X (Twitter) Today: Binance Boycott, McCormack vs. Wright Case, & More

Hot on X (Twitter) Today: Binance Boycott, McCormack vs. Wright Case, & More

A “Boycott Binance” movement is trending on X/Twitter after multiple altcoins plunged on the exchange within minutes on April 1.

Anahit Avetisyan
Top Crypto Tweets of The Day: KOLs on TDCCP Token, zkLend Hacker, & More

Top Crypto Tweets of The Day: KOLs on TDCCP Token, zkLend Hacker, & More

The TDCCP token gets attention with record-breaking moves, while the zkLend hacker falls victim to a phishing scam. Meanwhile, BlackRock’s Larry Fink shares his insights with investors.

Anahit Avetisyan
Top Crypto Tweets of the Day:  KOLs on the Crypto Cycle, DeFi State, & More

Top Crypto Tweets of the Day:  KOLs on the Crypto Cycle, DeFi State, & More

As crypto prices decline, the community continues to analyze the current crypto market cycle. One of the most popular platforms to share views and discuss these trends is Twitter/X.

Anahit Avetisyan
What Are Assets? Differences Between Coins and Tokens

What Are Assets? Differences Between Coins and Tokens

Discover the meaning of assets in finance and crypto, and learn the key differences between coins and tokens to make informed investment decisions.

The Coinomist
What Is a Margin Call? An Essential Guide

What Is a Margin Call? An Essential Guide

A comprehensive guide to understanding margin calls in trading. Learn what triggers them, how they work, their risks, and strategies to manage or avoid them

The Coinomist
What Happens When Bitcoin Runs Out? Predictions and Strategies

What Happens When Bitcoin Runs Out? Predictions and Strategies

Explore what happens when Bitcoin reaches its 21 million supply cap. Learn how the shift from block rewards to transaction fees could impact miners, investors, and the entire ecosystem.

The Coinomist
What Does HODL Mean? Lessons for New Traders

What Does HODL Mean? Lessons for New Traders

Learn the meaning behind HODL and its significance in crypto trading. Understand its origins, the psychology behind holding on, and how HODLing can shape your long-term investment strategy.

The Coinomist
How to Scale a Crypto Exchange and Attract More Users Globally

How to Scale a Crypto Exchange and Attract More Users Globally

Imagine you’ve built your own crypto exchange, and now it’s time to scale. You’ll need high-speed infrastructure, deep liquidity, and compliance.

Vlad Vovk
The Top Cryptocurrency Scams to Watch Out for in 2025

The Top Cryptocurrency Scams to Watch Out for in 2025

AI, fake exchanges, celebrity deepfakes, and old tricks repackaged in new forms. Here’s a look at the cryptocurrency scams gaining traction in 2025 and how to avoid losing everything to fraudsters.

Vlad Vovk
Arthur Hayes Challenges Fed Independence in His New Essay “The BBC”

Arthur Hayes Challenges Fed Independence in His New Essay “The BBC”

In his latest essay “The BBC,” Arthur Hayes examines the emotional pressures on the Federal Reserve and the monetary policy challenges that could lead to increased liquidity in the crypto market.

Dmytro Psevdonimenko
Trump’s “US Crypto Reserve” Plan: A Game Changer or Just Talk?

Trump’s “US Crypto Reserve” Plan: A Game Changer or Just Talk?

It takes just one post from Trump to stir the crypto market. Recently, he announced on Truth Social that the evaluation of a strategic crypto reserve is in progress as part of his broader Trump crypto policy.

Anahit Avetisyan
MORE
Dubai Lets You Rent Homes and Cars With Bitcoin. Here’s What to Know

Dubai Lets You Rent Homes and Cars With Bitcoin. Here’s What to Know

Now, you can rent in Dubai with crypto, signing rental agreements using BTC, altcoins, or USDT for both short-term vacations and long-term stays as an expat.

Yara Zornell
Why Lisbon is Now Emerging as The Newest World’s Crypto Capital

Why Lisbon is Now Emerging as The Newest World’s Crypto Capital

Imagine a city of hills, narrow cobblestone streets, and fado music drifting from cozy bars. This is Lisbon, the capital of Portugal, now rapidly transforming into a modern crypto city.

Iaroslava Kramarenko
MORE