Intermediate
dYdX crypto review: Should you trade on this decentralized platform?
If you're looking for a review of dYdX crypto , you've come to the right place. This decentralized trading is now establishing itself as a serious alternative to centralized exchanges , combining perpetual contracts , non-custodial management , and low fees . Here's a complete and straightforward analysis of its strengths, weaknesses, and everything you need to know before investing or trading on dYdX .
Table of contents
dYdX crypto review: What is dYdX ?
dYdX is a decentralized exchange (DEX) specializing in derivatives trading , particularly perpetual contracts . Unlike traditional platforms such as Binance , Bitvavo, or Coinbase , it operates on a blockchain infrastructure in non-custodial , meaning you retain full control of your funds through your own wallet .
Coinbase engineer , dYdX has gradually become one of the world's largest decentralized trading , boasting several billion dollars in trading volume .
dYdX crypto review: What services does dYdX actually offer?
Here is a detailed overview of its current features:
Trading in perpetual contracts
The core activity on dYdX V4 is the trading of perpetual contracts . Here are
the main features:
- More than 200 pairs available ( BTC -USD, ETH-USD, SOL-USD, AVAX-USD, etc.).
- Leverage of up to x50 on the most liquid pairs
- Highly competitive trading fees , particularly low compared to centralized platforms (decreasing according to your trading volume over 30 days).
- Operation based solely on derivative contracts against the USD — there is no spot market on dYdX V4.
- Using USDC USDC the sole collateral for all transactions.
- Possibility of taking long positions (betting on the rise) or short positions (betting on the fall).
MegaVault
Rather than a classic liquidity pool model like on Uniswap or Curve, dYdX introduces MegaVault with its V4, a different mechanism:
Users can deposit their USDC into the MegaVault . These funds are then used by dYdX to perform automated market making on the perpetual contracts available on the platform.
Market making involves continuously placing buy and sell orders on the market to ensure high liquidity . This mechanism reduces price spreads between buyers and sellers, facilitating rapid trading for all users. In return for this essential function, the market maker earns a small margin on each transaction by capturing a portion of the spread.
By depositing USDC into the MegaVault, users receive the following in return:
- A portion of the trading fees generated on transactions facilitated by this liquidity.
- Rewards DYDX tokens distributed by the protocol.
MegaVault follows a market-neutral : it simultaneously opens long positions (betting on a rise) and short positions (betting on a fall). This approach allows it to offset price movements and avoids being exposed solely to the rise or fall of a specific asset. The goal is not to speculate on the market's direction, but to generate stable income through the trading activity itself.
Even though deposits are always denominated in USDC and do not fluctuate directly with the prices of the cryptocurrencies traded, there is a risk of loss . These losses can occur if market-making strategies become less effective, particularly during periods of high volatility, extreme price movements, or significant imbalances in the order books.
In summary:
→ You don't bet on whether the market will rise or fall.
→ You benefit from continuous trading volume.
→ However, performance still depends on the effectiveness of the MegaVault strategy under different market conditions.
DYDX token Staking
dYdX DYDX token holders to :
- To stake their tokens to support network security (the dYdX Chain blockchain is based on Proof of Stake ).
- To receive rewards in DYDX .
- To participate in the decentralized governance of the protocol: proposals, votes on platform parameters, new features.
How does dYdX work?
dYdX is based on a hybrid architecture:
- Ethereum Smart contract for managing funds and trading orders.
- Off-chain order book to guarantee a fast trading experience, similar to CEX .
- Layer 2 StarkEx (developed by StarkWare) to reduce transaction costs and improve scalability.
Since V4 launched in 2023, dYdX operates on its own independent blockchain based on Cosmos SDK, in order to be completely decentralized and sovereign.
dYdX crypto review: Why use dYdX rather than a centralized exchange?
Here are the main advantages:
- Fund control : No deposit on an exchange, your money remains in your wallet .
- Access to futures : In some countries, access to futures contracts is restricted. dYdX legally circumvents this problem.
- Ultra-competitive fees : Trading fees range from 0.01% to 0.05%, significantly lower than those of most CEXs.
- No KYC required : You can trade anonymously without having to submit your identity documents.
Focus on trading fees
On dYdX, fees 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 discounts DYDX stakers .
Funding fees are also applied depending on whether the position is long or short on perpetual contracts, as on traditional platforms.
dYdX crypto review: What are the advantages of dYdX ?
Strengths
- Large selection of trading pairs (more than 200) , regularly updated.
- Very competitive fees , ideal for active traders.
- Secure non-custodial trading decentralized wallets such as Metamask or Keplr.
- A smooth user experience despite decentralization, thanks to a high-performance ordering engine.
- Sovereign blockchain with V4: no external dependency on Ethereum .
- Incentives for trading with very attractive reward programs.
Weak points
- No beginner support as developed as a traditional CEX.
- More complex to use than consumer applications.
- Lower volume on some pairs compared to the larger CEX.
- Risk related to self-managing your security: if you lose access to your wallet, your funds are lost.
In summary, if you are comfortable using a crypto wallet or are comfortable with the idea of learning how to use one and learning decentralized trading, there are only advantages to trading 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 free guide in the form below to learn how to decentralize your funds and use a decentralized wallet.
How to trade on dYdX ?
Here's how to get started:
- Connect your wallet (Metamask, Trust Wallet , Keplr…)
- Deposit the supported asset (USDC in particular)
- Choose the pair of perpetual contracts you wish to trade
- Define your leverage
- Place your order (limit, market or stop)
- Manage your position via the dashboard
The process is simple for users familiar with trading platforms, but requires careful attention to liquidation risk in the event of high leverage.
What's new in version V4 of dYdX ?
dYdX recently migrated to its own independent blockchain (based on Cosmos SDK) with several major new features:
- Complete autonomy : No more dependence on Ethereum or StarkEx.
- on-chain governance DYDX holders fully participate in decisions.
- Native token deployment : Ability to quickly offer new trading pairs.
- Cost reduction : No external gas costs, ultra-fast internal transactions.
This strategic change propels dYdX towards a more sovereign and competitive operation.
Performance and liquidity: dYdX vs other platforms
dYdX is now positioned as one of the leaders in decentralized perpetual trading :
- Among the largest trading volumes among perpetual contract DEXs (source: DefiLlama ).
- Deep liquidity on major pairs such as BTC/USDC, ETH/USDC, SOL/USDC.
- slippage on large orders.
The DYDX token: utility and value
The DYDX token fulfills several functions within the ecosystem:
- Governance : Right to vote on proposals to improve the protocol.
- Staking : Access to rewards via staking .
- Discounts on trading fees.
- Incentives : Rewards for high trading volumes.
However, be aware: like any governance token, the value of DYDX is volatile and depends heavily on the adoption of the platform.
Our detailed review of dYdX
Overall, dYdX is an excellent alternative to centralized exchanges . The platform combines several elements that make it a particularly attractive choice for experienced traders:
- transaction fees
- Easy access to futures 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.
Nevertheless, dYdX is clearly aimed at an audience already familiar with DeFi . For a complete beginner, the experience can be a little confusing at first.
Conclusion: Should you trade on dYdX in 2025?
If you are looking for an advanced DEX to trade leveraged perpetual contracts , while maintaining your financial independence and reducing your fees, then dYdX of the best options available today .
On the other hand, if you prefer an ultra-simplified experience or omnipresent customer support, a simplified CEX like Gemini may be a better fit.
It is up to you to weigh the advantages and disadvantages according to your investor profile.
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Yoann
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.
