dYdX is a decentralized exchange platform for cryptocurrency margin trading. "Oh really, so what?". Well, let me spotlight that for you!
dYdX started in 2017 as a layer 1 on Ethereum blockchain. It has since expanded its offerings to include margin and perpetual trading for various cryptocurrencies. Traders can now choose between two experiences: Layer 1 dYdX (on Ethereum) and Layer 2 dYdX (Starknet), shown in image 1&2. Additionally, lending and borrowing services have been introduced to decentralize the entire trading experience.
What does this mean in practice? When you deposit collateral to open a leveraged trading position, you're borrowing from a decentralized liquidity pool funded by other traders. And here's a cool thing: dYdX doesn't charge any fees for deposits or withdrawals!
Fun fact: The name "dYdX" comes from the equation dy/dx, a mathematical notation for a derivative that measures rate of change. Makes sense now you know more about the project right? Show Less