dYDx is an open-source decentralized exchange (DEX) that supports powerful trading options for cryptocurrencies, including derivatives, perpetual, spot, margin, and leverage trading. It is one of the leading alternatives to leading centralized exchanges for perpetuals. dYdX shot to fame in 2021, becoming the largest DEX by trading volume.

The dYdX decentralized exchange leverages zkSTARK, or StarkWare zero-knowledge proofs, for additional security within its platform. The DEX runs on Layer 1 Ethereum blockchain but has started moving to Layer 2 powered by StarkWare to offer greater scalability, efficiency, and lower trading costs until Ethereum 2.0 launches.

dYdX leverages Chainlink and MakerDAO as oracle services to gain access to off-chain accurate price feeds for its exchange platform. The price oracles leverage smart contracts running on the Ethereum network to feed this data to the exchange.

DYDX is the native crypto asset of the dYdX DEX and serves as its governance token. dYdX aims to be fully decentralized by the end of 2022 and will implement a DAO model consisting of its community members holding DYDX tokens. These token holders will enjoy voting rights and share their inputs on proposals for future upgrades.

dYdX works as a hybrid DEX as of May 2022. The core exchange protocol was developed and runs on the Ethereum blockchain and is powered by smart contracts. However, some components of the trading platform such as the orderbook and matching engine operate using a centralized model on dYdX Tradings and partners servers.

The decentralized portion of the dYdX trading platform offers a completely transparent and secure model of operation, empowering its users by enjoying self-custody of their trading funds and positions on the exchange. Meanwhile, keeping a centralized matching engine gives the DEX immense scalability, allowing it to handle tens of millions of orders on a daily basis with a latency of under a second.

dYdX offers a web-based and mobile-based interface for trading cryptocurrencies, across spot and margin trading. In addition, crypto traders can also access perpetual contracts, earn interest on their crypto holdings and even borrow loans backed by crypto collateral on the platform.

The DYDX crypto gives its holders an opportunity to earn mining rewards and participate in staking pools on the platform. In addition, dYdX users who hold the native token also enjoy trading fee discounts when paying in DYDX.

The DYDX token can also be staked by holders to create a safety pool for the exchange to earn a portion of rewards every 14 days. They can also stake DYDX to create liquidity for the exchange, locking up their crypto for 14 days to encourage investment from market makers on dYdX.

The DYDX cryptocurrency was launched in August 2021 along with the creation of the dYdX Foundation which oversees the governance and development of the platform and issues the native cryptocurrency. The ERC-20 token based on the Ethereum blockchain has a total supply of 1 billion which will be minted and distributed over a period of five years.

The DYDX crypto was listed for buying and trading on leading cryptocurrency exchanges starting from September 2021. The token distribution of DYDX is as follows:

1. 50% of total supply will be earmarked for the dYdX community

2. 25% of DYDX will be spent as trading rewards on the platform

3. 7.5% will be used for retroactive mining rewards

4. 7.5% will go as rewards for liquidity providers (LPs)

5. 5% of DYDXs total supply will be set aside in the community treasury

6. 2.5% of DYDX will be given as rewards to users who stake USDC to a staking pool and provide liquidity to the exchange

7. 2.5% makes up the safety pool rewards

8. 27.73% of DYDX crypto will be shared among past investors of the project

9. 15.27% of DYDX will be given to its founders, employees and other stakeholders who worked on the development of the DEX

10. 7% of DYDX has been earmarked for future employees and consultants

dYdX is one of the largest and most popular decentralized exchanges and DeFi apps in the market. As of June 2022, it enjoys a TVL of almost $1 billion and ranks 13 in terms of TVL on the Ethereum network.

As the demand for DeFi projects and platforms grows in the crypto world, dYdX could see rising adoption among crypto traders who want to partake of all benefits that decentralization and blockchain technology offer, in terms of trading costs and efficiency. In such an event, the DYDX price could soar higher as the platform attracts more users to sign up for its services.

The price of DYDX crypto can also pick up as the 24-hour trading volume on the dYdX exchange rises. As more investors sign up and use the exchange for trading digital assets, the uptick in transactions can make its native digital token an even more valuable investment.

DYDX price statistics could also experience considerable improvement when the dYdX DEX adds more offerings and services to its exchange. Its evolution into a DAO ushering in true decentralization could also mark a significant step in its evolution and make its native token a worthwhile asset to include in your crypto portfolio.

The DYDX token serves as the governance token of the dYdX exchange. 25% of its total supply has been earmarked to be distributed as rewards to users of the exchange. You can claim DYDX rewards in the following ways:

1. Being an Active Trader on dYdX and Holding the Token

The Layer 2 dYdX is faster and charges lower transaction fees, tackling the high gas fees on Ethereum. Traders using the Layer 2 protocol are eligible to receive rewards for their trading activities based on the platforms trading volume and level of activity. DYDX holders receive rewards paid out at regular intervals.

2. Staking DYDX

You can earn DYDX by lending liquidity to the dYdX exchange. You also have the option of staking your tokens to the safety pool to improve the security of the exchange and earn rewards every 14 days.

3. Lend Liquidity on BYDFi

You can also earn DYDX easily via BYDFis Crypto Lending feature. Simply head to the page and look for the DYDX crypto. Enter the number of tokens you wish to lend and select the duration (7 days, 14 days or 28 days) to view the daily interest rate and get an estimate on profits.

Uniswap and dYdX are two prominent DEXs on Ethereum, but they have distinct characteristics. Here are the main differences:

TVL

Uniswap, an established decentralized exchange, has a higher Total Value Locked (TVL) of nearly $5.75 billion, making it the fifth-largest DeFi protocol on Ethereum. In contrast, dYdX ranks 13th with a TVL of under $1 billion and lower trading volume.

Number of Integrations

Uniswap has a broader reach and more integrations compared to dYdX, making it more versatile for experienced crypto traders.

Number of Services

dYdX offers more services than Uniswap. Apart from being an Automated Market Maker (AMM) and DEX like Uniswap, dYdX supports margin trading, lending, and borrowing. However, yield farming is not available on the dYdX platform.