What is dYdX Exchange and what is DYDX Token. Can US citizens trade on dYdX
DeFi (Decentralized Finance), has opened up a new way of looking at how financial services might exist in a decentralized and non-censored environment. This industry is still in its infancy and is expected to outperform traditional financial platforms within a few years.
The Decentralised Exchanges are an essential part of the DeFi sector. These exchanges allow users to trade their crypto assets without custodial custody while still keeping their identity anonymous.
Today, we’ll be reviewing dYdX, a Decentralised Exchange (DEX). To help you decide if it is worth your time, we will review each component.
Let’s just get started.
What is dYdX?
dYdX (non-custodial Decentralised Exchange) is built on the Ethereum blockchain network. The mathematical equation dY/dX, which is the measure of Change, gives the platform its name.
It was founded in 2017 in San Francisco Bay Area, California. dYdX offers trading with derivatives and margin trading up to 20 times.
A user can access an on-chain order book and a settlement mechanism via dYdX. This gives users the security and convenience of a central exchange while also allowing them to access an off-chain order book.
It is done in a completely decentralized ecosystem, while users remain anonymous.
dYdX is a top Decentralised Exchange (DEX) in the crypto market. It is second in the market based on trading volume after Uniswap.
The dYdX foundation was established in August 2021 to manage the continued development and governance for the platform.
Read more about dYdX at this link. Let’s learn more about the founder and CEO of dYdX.
Who is the founder of dYdX
Antonio Juliano is the Founder & CEO of dYdX Exchange.
Antonio Juliano – LinkedIn CEO and Founder
Antonio is located in San Francisco Bay Area (California), USA. He graduated with a BSE in Computer Science from Princeton University. He was an engineer at MongoDB, Uber and Coinbase before establishing dYdX.
What are the Features of the dYdX exchange?
These are the features of the dYdX exchange:
1. Trading Crypto
dYdX Trading Interface
These types of trades are possible with dYdX:
Perpetual derivatives trading b) Margin trade on Perpetual derivatives up to 20 times
This allows users to access the derivatives market which can be further used for Margin Trading.
A user can also place market, limit, and stop-limit orders on the platform. The user has a seamless experience with dYdX’s web interface.
2. Mobile Application
dYdX Mobile App
dYdX offers a mobile app for iOS devices. Users can access the mobile application via their iOS devices.
Trade anywhere you like b. Track trades c. Don’t miss out on potential opportunities
Learn more about the dYdX app for mobile devices here.
3. Hedgies NFTs
dYdX Hedgegies NFTs
dYdX also has an in-house NFT (Non Fungible Tokens) collection called Hedgies. These 4200 collectible avatars were created using the Ethereum Blockchain network.
Each Hedgie represents an ERC 721 token. This token is the standard token for NFTs created on Ethereum Network.
These NFTs can also be purchased on the Opensea secondary NFT market.
What fees does dYdX exchange charge?
The following is the base trading fee for dYdX:
Maker Fee – 0.02 percent of transaction value. Taker Fee – 0.05%
The fee is reduced if the trading volume of users increases. The fees are based on volume.
dYdX Trading Fees Discount
To get a further discount on trading fees, a user can also own a DYDX token. The following discount is available to DYDX token owners:
dYdX Trading Fees Discount
You can also get an additional tier in your discount rate if you have Hedgies NFT. If you have 100 DYDX tokens you can get a 3% discount on the fee. You would get a 5% discount if 100 DYDX tokens are held and 1 Hedgies NTFT.
There are two types of withdrawals:
Fast Withdrawals: Fee of 0.1% of withdrawal amount
All withdrawals must be made in addition to the dYdX fee.
Create dydx account
Supported wallets by dYdX
The following wallets are supported by dYdX:
Type of WalletName
You can find more information about Crypto wallets in our Crypto Wallet Guides:
Best Crypto Wallets for Beginners: Best Crypto Hardware WalletsBest Bitcoin WalletsBest Ethereum Wallets
DYDX Token
What is the DYDX Token exactly?
DYDX, the in-house token for the dYdX Exchange, would be used to manage its Layer 2 protocol.
What are the uses of DYDX Tokens?
These are the possible uses of the DYDX token:
StakingYield FarmingGovernanceFee Discounts
What is the DYDX Token Economy (or DYDX Token Economy)?
DYDX Tokenomics
TokenomicsAmountMaximum Supply (Source)1 BillionTotal Supply1 BillionCirculating Supply65 Million (6.5% of Total Supply)Token Price (As of 23 June 2022)$ 1.43Market Cap$ 93 MillionFully Diluted Value$ 1.43 Billion24 Hour Trading Volume$ 84 Million
What is DYDX Token Distribution and how can I get it?
DYDX Token Distribution
What is DYDX Token Emmission?
DYDX Token Emission Schedule
According to the emission schedule for February 2023, a large supply of DYDX tokens will be unlocked. This would greatly increase the token’s market supply. This could also lead to a substantial drop in market price.
Where can I buy DYDX Tokens?
An individual can purchase a DYDX token from the following centralized or decentralized crypto exchanges
Centralized ExchangesDecentralized ExchangesBinanceUniswapFTXSushiswapKuCoinKrakenByBit
Learn more about the DYDX token by clicking here
Investors in the dYdX platform
One of the most prestigious venture capital and investment firms funds the dYdX Exchange:
Investors in dYdX
What are the pros and cons of dYdX exchange?
These are the pros and cons to the dYdX Exchange:
The dYdX exchange has many benefits
These are the benefits of dYdX Exchange:
1.Ease in Use
The dYdX platform can be used in a relatively simple way. The platform has an interactive web interface as well as a mobile app for iOS devices.
2.Gasless Trading
All trade transactions are done on Layer 2 protocol. There is no gas fee.
A gas fee will be charged to withdraw or deposit funds.
3. No KYC
dYdX does not reveal the identity of its users. Customer KYC is not required. Users could simply connect their wallets, trade and then leave the platform.
4. Security
dYdX Security Audit
The dYdX platform’s smart contracts are all open-sourced and audited. The platform is not custodial and does not retain funds.
Limitations to the dYdX exchange
These are the limitations of dYdX Exchange:
1.Limited token pair
The dYdX Exchange offers a limited amount of token pairs
2. No Fiat on-ramp
Only crypto-to-crypto deposits and withdrawals are allowed at dYdX You cannot deposit fiat currencies.
3. The cost of gas for withdrawals and deposits
While dYdX doesn’t charge any fees for withdrawals or deposits, users must pay the Ethereum gas fee. dYdX allows gasless deposits for promotional purposes. Learn more about gasless deposits at dYdX here.
Conclusion – dYdX exchange review
We believe that dYdX has a decent exchange. It is easy to use and interactive.
We hope this article helped you to evaluate the dYdX exchange. We welcome your comments and feedback.
This post does not contain any financial advice. Before making any financial decisions, please consult your financial advisor.
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Resources
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Frequently Asked Questions (FAQs).
Can US citizens use dYdX?
The dYdX exchange is not available to citizens of the United States of America.
Can US citizens buy DYDX tokens?
It is illegal for citizens of the United States of America to trade, hold, or buy DYDX tokens.
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