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dydx exchange is one of the platforms providing various services, which has recently attracted a lot of attention and the number of its users is increasing. This exchange was launched in 2017, but many of its services have been available to users since 2019. Join us in this article to fully explain about this exchange and its features and facilities.
This platform is a decentralized exchange (dex) that provides various services to users without a regulatory body. This exchange was created on the platform of the Ethereum network, therefore, all the features that Ethereum has (such as smart contracts) are also visible in this exchange.
Borrowing
Lending
Spot Trading
Margin Trading
Perpetual Trading
According to the services provided by this exchange, it can be said that this exchange is a competitor for other decentralized exchanges such as UniSwap or SushiSwap.
With the launch of the second layer of Ethereum, this exchange also moved some of its services to the second layer and they are no longer available in the first layer (for example, spot and margin). Although at first glance this may not be good, but if we look at it from the point of view of speed and scalability, it is a good decision. As you know, with the launch of Ethereum 2, the speed of transactions will increase to a great extent, and for this reason, it seems reasonable to enter the second layer to provide better services.
Thanks to Ethereum’s smart contract, you can have margin transactions and permanent contracts in this decentralized exchange, which many professional traders use. For example, imagine that you want to profit from a drop in the price of a currency. In this way, you open a short trading position on that currency. If the price moves as you expect, you will profit and if not, you will lose.
In order for a platform like dydx to have such an ability, a smart contract must be used. In this way, everything is done automatically by the network itself and your profit and loss are calculated.
The most important currencies available in this exchange are: Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Polkadata (DOT), Solana (SOL), Chain Link (LINK), Phantom (FTM), Ripple ( XRP), Cosmos (ATOM), UniSwap (UNI), Poligan (MATIC), Sushi Swap (SUSHI), Sandbox (SAND), Litecoin (LTC), EOS (EOS), Cardano (ADA), Terra (LUNA) FileCoin (FIL), Internet Computer (ICP), dydx (DYDX), Shibaino (SHIB), Harmony (ONE), Avalanche (AVAX), Maker (MKR), Pancake Swap (CAKE), Aave, Chiles (CHZ) and…
Like other decentralized exchanges, a governance token is needed to control things in the protocol, increase security and manage the network in general. This token is known as DYDX and its function is similar to the function of UNI token in UniSwap. This token can be used for many purposes, including investing, trading, or having voting rights in the protocol. It can even be used to discount transaction fees, which we’ll explain more about below. There are a total of 1 billion DYDX tokens that will be distributed over a 5-year period.
dydx exchange is supported by the blockchain network, so it is almost impossible to hack and tamper with users’ assets in this exchange. On the other hand, the security of the dydx exchange is provided by the Ethereum blockchain. In this way, there will be no risk other than making a loss in trading in this exchange.
The method of working with this exchange may seem a little difficult at first, but it is not like that at all. To get started, you need to use a wallet that supports Ether (ETH) or other currencies on the Ethereum network. These currencies are used as fees for your transactions. For example, you can buy some Ethereum and send it to Metamask wallet. Then you need to connect the wallet to the dydx exchange which will allow you to make any transaction you want.
One of the advantages of this exchange for Iranians is that they can trade in it without authentication. In a situation where many foreign exchanges have limited their services to Iranians, using this exchange is a suitable alternative. Although this method has many advantages and limitations, but with the growth of decentralized exchanges, the use of these exchanges is expected to become more common.
DYDX token holders have the right to vote in this platform and can interfere in the processes and proposals given in this network. Currently, with this token, you can get voting rights in the following cases:
If a loss occurs, the amount of payouts will be determined in the stake pool.
Determining the risk parameters for the second layer protocol
Vote to list new currencies
Governance contracts
Voting for market makers to be added to liquidity pools
What is the reward for DYDX token holders?
Currently, DYDX token holders are given 3 types of rewards:
This bonus is given to people who trade the second layer of dydx and people who have been users of this platform for a long time. The reward amount is based on your total activity, which is currently available to someone if it has been awarded.
This pPayment is given to encourage people to use the second layer protocol of dydx exchange. This bonus is also used to increase the liquidity speed and popularity of dydx. Any user who is active in the second layer of this protocol will receive this bonus. The amount of bonus depends on many factors, but the most important is the amount and volume of transactions.
Users who have an active Ethereum address will be rewarded in the new period when their liquidity maker volume reaches at least 5% of the previous period (the term refers to the time intervals for providing rewards). DYDX tokens will be offered in a 28-day period to those who have provided liquidity to the network, and this process will continue for 5 years. The main purpose of these bonuses is to increase the liquidity of the dydx market in the long run.
DYDX token holders will receive a discount on their transaction fees based on the number of tokens they have in their wallet. For example, if you have 10,000 tokens or more, you will get a 15% discount.
dydx exchange is one of several decentralized exchanges in the digital currency market that has been able to survive in the heavy competition between exchanges. In addition, it seems that with increasing attention and use of this exchange, it has a chance to have a bright future. Despite this, dydx is still in its infancy and has a long way to go.
