dYdX
dYdX is a semi-decentralized trading platform that allows users to trade perpetuals with up to 10x leverage. The platform offers a non-custodial trading experience with low fees and a high degree of transparency.
Categories:
DeFi
Updated:
2023-04-03
Tags:
Perpetual
Ticker:
DYDX
Token Strength.
Token Utility:
$DYDX Reduced trading fees: Holders of $DYDX tokens can access reduced trading fees on the platform, providing a financial incentive to hold and use the token. Governance participation: $DYDX token holders have voting rights and can participate in decision-making processes related to the protocol's development and direction. Staking rewards: Staking $DYDX tokens can provide additional $DYDX tokens as a reward, creating an opportunity for investors to earn a passive income while supporting the protocol.
Demand Driver:
Discounted trading fees: $dydx token holders receive discounted trading fees on the dydx trading platform, providing an incentive to purchase and hold the token for frequent traders. Speculation on revenue accruing to DAO-governed treasury with V4: The upcoming V4 upgrade will introduce a DAO-governed treasury, enabling $dydx token holders to speculate on potential revenue generated from platform usage and governance decisions.
Value Creation:
The value created by dYdX is significant, providing users with access to perpetuals and leverage trading on a semi-decentralized platform. This allows traders to profit from market movements without owning the underlying asset. With a semi-decentralized approach, dYdX offers secure and transparent trading where users control their private keys while benefiting from the platform's liquidity and infrastructure.
Value Capture:
Value accrual to token: None. The dydx protocol does not use its token to capture the value it creates through supply and demand mechanisms. Value accrual to protocol: The protocol currently captures value through revenue generated from fees, which accrue to the centralized dYdX Trading Inc. entity. There is no protocol treasury or $DYDX token-governed entity that captures this value.
Business Model:
The business model for dYdX protocol Revenue comes from: Fees are charged on all trades made on the platform. Revenue is denominated in: The currency of the traded asset. Revenue goes to: Centralised dYdX Trading Inc. Token rewards and fee reductions are offered to traders holding dydx tokens, but the current revenue does not go to a $DYDX token-governed entity.
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Protocol Analysis.
| Problems & Solutions | Problem: Centralized exchanges pose security risks and lack transparency, while current decentralized exchanges lack the necessary features for advanced trading such as perpetuals and leverage trading. Solution: dYdX addresses these issues by offering a semi-decentralized platform that supports perpetuals and leverage trading. This allows for greater transparency and security while still providing advanced trading features. |
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| Predecessors | Perpetual Protocol - a decentralized perpetual futures trading platform. Serum - a decentralized exchange built on Solana blockchain with trading pairs including perpetuals and futures. MCDEX - a decentralized derivatives trading platform built on Ethereum with support for perpetuals and other derivative products. |
Investment Take
... coming soon
Tokenomics Timeline.
2021-08-03
TGE
1 billion tokens launched.
2022-11-24
Safety and Liquidity Module wind down
Safety and liquidity module have been shut down after community vote.
2023-01-20
First large unlock upcoming
Due to large allocation to employees, investors and founders this upcoming unlock could be quite significant.
2023-06-14
Token Upgrade due to new blockchain
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Ecosystem Users.
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Resources.
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