dYdX

Overview of dYdX

dYdX was founded in 2018. It is registered in the United States but it has been verified that this Exchange currently has no valid regulation.

What is dYdX？

dYdX is categorized as a virtual currency exchange and operates as a decentralized exchange. The platform provides users with the ability to trade a variety of cryptocurrencies, including popular options such as Ethereum (ETH) and Dai (DAI). One notable feature of dYdX is its support for leveraged trading, with a maximum leverage of 10x, allowing users to potentially amplify their trading positions.

dYdX offers two trading platforms, namely dYdX Web and dYdX Protocol, providing users with options for trading flexibility. The platform also supports deposits and withdrawals using Ethereum (ETH) and Dai (DAI), offering convenience for users.

In terms of educational resources, dYdX empowers its users by providing tutorials, blog posts, and documentation on their website. This enables users to enhance their understanding of the platform and make informed trading decisions.

Pros and cons

Regulatory Authority

dYdX operates under no regulatory authority according to the latest information addressed on WikiBit.

Unregulated exchanges do not have the same level of oversight and accountability. This can pose risks for traders, as there may be a lack of safeguards in place to protect against fraudulent activities or market manipulation. Additionally, unregulated exchanges may not have proper mechanisms to handle disputes or provide recourse for users in case of issues or losses.

To mitigate the risks associated with unregulated exchanges, traders are advised to research and choose reputable and regulated platforms. It is important to consider factors such as the platform's regulatory authority, security measures, customer support, and trading volume. By opting for regulated exchanges, traders can have greater assurance of a secure and fair trading environment.

Furthermore, traders should exercise caution and conduct thorough due diligence before engaging in any trading activities. They should carefully consider the risks involved, set clear investment goals, and only invest funds that they can afford to lose. It is also recommended to stay informed about the latest market trends, news, and regulatory developments to make educated trading decisions.

By taking these precautions and choosing regulated exchanges, traders can minimize their exposure to potential risks and enhance their overall trading experience.

Security

dYdX claims to prioritize the security of its users' funds and transactions. The platform implements several protection measures to enhance security. These measures include secure custodial services and the use of smart contracts on the Ethereum blockchain. By utilizing smart contracts, dYdX claims to eliminate the need for users to trust central authority with their funds, enhancing the security of transactions.

In terms of user feedback, it is important to note that individual experiences may vary. However, dYdX has received positive reviews regarding the security of the platform. Users appreciate the decentralized nature of the exchange, which provides them with control over their funds and reduces the risk of centralized hacks.

It is also worth noting that no exchange is completely immune to security risks. While dYdX takes measures to enhance security, it is important for users to take precautions as well. This includes enabling two-factor authentication, using strong and unique passwords, and keeping their account information confidential. By adhering to these best practices, users can further protect their funds and minimize the risk of unauthorized access to their accounts.

Overall, dYdX claims to provide a secure trading environment for its users, combining the benefits of decentralization and smart contract technology. However, it is always advisable for users to stay vigilant and take necessary steps to safeguard their funds.

Cryptocurrencies available

dYdX supports trading for approximately 36 cryptocurrencies, which is a narrower selection compared to mainstream exchanges. However, it includes popular options like Bitcoin (BTC), Ether (ETH), and Dai (DAI), as well as lesser-known ones such as UMA (UMA), Ox(ZRX), and Zcash (ZEC). This variety caters to traders with different strategies and risk appetites to a certain extent.

It is important to note that cryptocurrency prices can be highly volatile and can vary across different exchanges. This means that the price of a particular cryptocurrency on dYdX may differ from the price on other exchanges. Traders should take this into consideration when making trading decisions and closely monitor market trends.

In addition to cryptocurrency trading, dYdX also offers leveraged trading options. Users can engage in leveraged trading with a maximum leverage of 10x, allowing them to potentially amplify their trading positions and potentially earn higher profits. However, it is important to note that leveraged trading also carries higher risks, as losses can be magnified.

How to open an account？

dYdX is a non-custodial exchange. This means that your funds are either in your own wallet, or in a “smart contract”, which is a program that runs on the Ethereum Blockchain.

Your dYdX account is owned by your Ethereum wallet. For Perpetuals, since they are on Layer 2 you will first need to sign up for a Layer 2 Perpetual account using your wallet via our website. Signing up is a one-time process.

You may refer to the link for a video tutorial: https://youtu.be/TXTJfshPsj0

Fees

dYdX uses a maker-taker fee model for determining its trade fees. There are two types of orders on dYdX — Maker and Taker orders.

• Maker orders are orders that do not immediately fill and rest on the order book — these orders add depth and liquidity to the order book.
• Taker orders, on the other hand, immediately cross existing Maker orders. They remove liquidity from the order book.

Volume Weighted Maker-Taker Fee Schedule (30D Volume)

* subject to completing onboarding requirements with dYdX Trading

Trading Fee Discounts

Holders of DYDX or stkDYDX receive a trading fee discount based on the size of their current holdings:

Any address that holds 1+ Hedgies will automatically receive the benefit of increasing one fee tier.

Taker fees after all discounts and benefits cannot be lower than 0.02% (2bps). dYdX Trading Inc. reserves the right to modify the trading fee discounts at any time.

Deposit & Withdrawal

Deposits

Users can deposit funds to their account by sending a Layer 1 Ethereum transaction through their wallet through the website. Users can deposit either USDC, or an array of other assets, which are then converted to USDC via 0x API's on-chain liquidity. After the deposit transaction is mined, 14 Ethereum network confirmations (usually about 3 minutes) are required for your funds to be available to trade.

Withdrawals

There are two types of withdrawals: Fast Withdrawals and Slow Withdrawals:

Fast Withdrawals

Fast withdrawals utilize a withdrawal liquidity provider to send funds immediately and do not require users to wait for a Layer 2 block to be mined. Users do not need to send any Transactions to perform a fast withdrawal. Behind the scenes, the withdrawal liquidity provider will immediately send a transaction to Ethereum which, once mined, will send the user their funds. Users must pay a gas fee to the liquidity provider for fast withdrawals equal to the gas fee that the provider must pay.

Slow Withdrawals

Slow withdrawals do not use a liquidity provider to speed the withdrawal process, and so must wait for a Layer 2 block to be mined before they are processed. Layer 2 blocks are mined roughly once every 10 hours, though this could be more or less frequent (up to 20 hours) based on network conditions. Slow withdrawals occur in two steps: first, the user requests a slow withdrawal, then once the next Layer 2 block is mined, the user must send a Layer 1 Ethereum transaction to claim their funds.