Intermediate
dYdX Crypto Opinion: Should we trader on this decentralized platform?
If you are looking for an opinion on dYdX Crypto , you are in the right place. decentralized trading platform is today a serious alternative to centralized exchanges , by combining perpetual contracts , non-custodial management and reduced costs . Here is a complete and without detour analysis of its strengths, its weaknesses, and everything you need to know before investing or trading on dYdX .
Table of contents
dYdX Crypto Opinion: What is dYdX ?
dYdX is a decentralized exchange (DEX) specialized in the trading of derivatives , in particular perpetual contracts . Unlike conventional platforms like Binance , Bitvavo or Coinbase , it works on a blockchain infrastructure in non-custodial , which means that you keep total control of your funds via your own wallet .
Coinbase engineer , dYdX has gradually become one of the largest decentralized trading in the world, displaying several billion dollars in exchange volume .
dYdX Crypto Opinion: Which services really offers dYdX ?
Here is a precise overview of its current features:
Trading of perpetual contracts
The heart of the activity on dYdX V4 is the trading of perpetual contracts ( perpetual contracts ).
Here are the main characteristics:
- More than available pairs BTC -usd, Eth-USD, Sol-USD, Avx-USD, etc.).
- A lever effect going up to X50 on the most liquid pairs
- Very competitive trading costs , particularly low compared to centralized platforms (declining according to your volume of trading over 30 days).
- Operation based solely on derivative contracts against the USD - there is no Spot market on dYdX V4.
- USDC use as a single collateral for all operations.
- Possibility of taking long positions (bet on the rise) or short (bet on the decline).
Megavault
Rather than a classic model of liquidity pools as on Uniswap or Curve, dYdX introduces with its V4 Megavault, a different mechanism:
Users can deposit their USDC in Megavault . These funds are then used by dYdX to make automated market making on perpetual contracts available on the platform.
The Market Making is to permanently place purchase and sale orders on the market in order to ensure strong liquidity . This mechanism reduces price differences ( SPREADS ) between buyers and sellers, which facilitates rapid exchanges for all users. In return for this essential function, the market maker wins a small margin with each transaction, by capturing part of the Spread.
By depositing USDC in Megavault, users receive in return:
- A share of trading costs generated on transactions facilitated by this liquidity.
- DYDX tokens rewards distributed by the protocol.
The Megavault follows a so-called Market-Neutral : it simultaneously opens long positions (focusing on the rise) and short positions (focusing on the decline). This approach makes it possible to compensate for the price movements and to avoid being exposed only to the rise or the descent of a specific asset. The objective is not to speculate on the management of the market, but to generate stable income thanks to the exchange activity itself.
Even if the deposits are still labeled in USDC and do not fluctuate directly with the prices of traded cryptocurrencies, there are risks of losses . These losses can occur if market making strategies become less efficient, especially during high phases of volatility, extreme price movements, or significant imbalances in order books.
In summary:
→ you don't bet on the rise or drop in the market.
→ You take advantage of the continuous exchange volume.
→ But performance still depends on the effectiveness of the Megavault strategy under different market conditions.
Tokens Staking DYDX
dYdX allows holders of the token DYDX :
- To stike their tokens to support network security (the dYdX Chain blockchain is based on the Proof of Stake ).
- To receive rewards in DYDX .
- To participate in the decentralized governance of the protocol: proposals, votes on the parameters of the platform, new features.
How does dYdX work?
dYdX is based on a hybrid architecture:
- Smart contract S Ethereum for the management of trading funds and orders.
- Order Book off-chain to guarantee a quick trading experience, similar to CEX .
- Layer 2 Starkex (developed by Starkware) to reduce transaction costs and improve scalability.
Since the V4 launched in 2023, dYdX works on his own independent blockchain based on Cosmos SDK, in order to be completely decentralized and sovereign.
dYdX Crypto Opinion: Why use dYdX rather than centralized exchange?
Here are the main advantages:
- Fund control : No deposit on an exchange, your money stays in your wallet .
- Access to future : in some countries, access to term contracts is limited. dYdX goes around this problem legally.
- Ultra-competitive costs : trading costs vary between 0.01 % and 0.05 %, much lower than those of most CEXs.
- No compulsory KYC : you can trader anonymously without having to submit your identity documents.
Focus on trading costs
On dYdX, the costs are structured according to your monthly trading volume:
- Maker Fee : 0.00 % to 0.02 % depending on your level.
- Taker Fee : 0.05 % maximum for small volumes, decreasing with activity.
- Trading discount DYDX stakers .
Funding costs ( Funding Fees ) are also applied according to the long or short position on perpetual contracts, as on conventional platforms.
dYdX Crypto Opinion: What are the advantages of dYdX ?
Strengths
- Wide choice of trading pairs (more than 200) , regularly updated.
- Very competitive costs , ideal for active traders.
- Secure non-custodial trading decentralized wallets such as Metamask or Keplr.
- Fluid user experience despite decentralization, thanks to an efficient order engine.
- Sovereign blockchain with the V4: no external dependence in Ethereum .
- Trading incentives with very attractive reward programs.
Weak points
- No support for beginners as developed as a traditional CEX.
- Use more complex than consumer applications.
- Lower volume on certain pairs compared to the largest CEX.
- Risk related to the self-management of your safety: if you lose access to your wallet, your funds are lost.
To summarize, if you are comfortable with the use of a Crypto Wallet or that you are comfortable with the idea of learning to use it and learning decentralized trading, there are only advantages to trader on a Dex like DYDX.
If you are a beginner and want to learn how to use a decentralized wallet, we invite you to download our guide offered in the form below to learn to decentralize your funds and use a decentralized portfolio.
How to trade on dYdX ?
Here's how to start:
- Connect your wallet (metamask, Trust Wallet , keplr, etc.)
- Place the supported assets (USDC in particular)
- Choose the pair of perpetual contracts you want to trade
- Define your lever effect
- Get your order (limit, market or stop)
- Manage your position via the dashboard
The process is simple for users accustomed to trading platforms, but requires special attention to the risk of liquidation in the event of high leverage.
What are the news of the V4 version of dYdX ?
dYdX recently migrated to his own independent blockchain (based on Cosmos SDK) with several major new features:
- Complete autonomy : more dependence in Ethereum or Starkex.
- on-chain governance DYDX holders fully participate in decisions.
- Tokens native deployment : possibility of quickly offering new trading pairs.
- Reduction of costs : no external Gas fees, ultra-fast internal transactions.
This strategic change propels dYdX to a more sovereign and competitive functioning.
Performance and liquidity: dYdX vs other platforms
dYdX is positioned today as one of the leaders in decentralized perpetual trading :
- Among the largest volume of exchanges among perpetual contracts (Source: Defillama ).
- Deep liquidity on major pairs such as BTC/USDC, ETH/USDC, Sol/USDC.
- Extremely low slipping on large orders.
The DYDX token: Utility and value
The token DYDX fulfills several functions in the ecosystem:
- Governance : right to vote on proposals for improving the protocol.
- Staking staking pools .
- Discounts on trading costs.
- Incitations : awards for large trading volumes.
Be careful however: like any governance token, the value of the DYDX is volatile and depends strongly on the adoption of the platform.
Our detailed opinion on dYdX
Overall, dYdX is an excellent alternative to centralized exchanges . The platform combines several elements which make it a particularly attractive choice for experienced traders:
- Low costs on transactions.
- Easy access to future contracts even for users in restrictive jurisdictions.
- Absolute control of assets without dependence on a centralized entity.
- Continuous innovation : Successful migration to a clean blockchain, regular addition of new pairs.
Despite everything, dYdX clearly addresses an audience who already has a certain familiarity with the DEFI . For an absolute beginner, the experience can be a bit confusing at the start.
Conclusion: Should we trader on dYdX in 2025?
If you are looking for an advanced DEX to trade perpetual contracts with leverage , by retaining your financial autonomy and by reducing your costs, then dYdX is clearly one of the best options available today .
On the other hand, if you prefer an ultra-esimplified experience or omnipresent customer support, a simplified CEX with low costs like Bitvavo can be better suited.
It's up to you to weigh the advantages and constraints according to your investor profile.
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Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
