dYdX is a decentralised exchange (DEX) that offers trading in over 35 different cryptocurrencies such as Bitcoin, Ethereum, Dogecoin and Cardano, according to Cointelegraph. The dYdX exchange started offering cross-margin perpetual trading. In cross-margin trading, users can repurpose their available platform to provide liquidity to existing trades.
As stated by Cointelegraph, dYdX protocol was built over by Ethereum smart contracts and Stark rollups powered by Starkware. In order to decentralise, most of the dYdX exchanges are built on trustless protocols which are publicly extensible without any permission. The different trading options on a dYdX exchange are mentioned below:
Perpetual trading on the dYdX exchange
Perpetual trading is dYdX’s flagship offering which allows users to trade open markets with non-expirable contracts. As a result, investors get to keep and sell their positions until the predetermined trade conditions are met. The dYdX perpetual is offered as a non-custodial, decentralised margin product that provides exposure to a range of cryptocurrency assets.
Governance and staking in dYdX
Users can earn dYdX tokens on their trading activities on a DEX through paid fees and open interest. The community segment of the dYdX exchange allows investors to stake their existing cryptocurrency assets to earn yield in dYdX. The exchange offers two pools such as liquidity and stake for staking USD Coins. dYdX tokens can be used on the platform for community voting and governance initiatives.
Non-fungible tokens on dYdX
dYdX’s recent product offering is an NFT collection named Hedgies, which refers to a collection of animated hedgehogs. Hedgies are distributed to users based on trading statistics and community interactions such as voting.
Spot and margin trading on dYdX (legacy)
dYdX offered spot and margin trading services over the Ethereum layer-1 blockchain protocol. The dYdX exchange uses Ethereum smart contracts to leverage spot and margin trades, and also offers trading features including stop-loss and limit orders.
(With insights from Cointelegraph)