Cover Image for dYdX


dYdX is a semi-decentralized trading platform that allows users to trade perpetuals with up to 10x leverage. The platform offers a non-custodial trading experience with low fees and a high degree of transparency.









Token Strength.

Token Utility:


Reduced trading fees: Holders of $DYDX tokens can access reduced trading fees on the platform, providing a financial incentive to hold and use the token.
Governance participation: $DYDX token holders have voting rights and can participate in decision-making processes related to the protocol's development and direction.
Staking rewards: Staking $DYDX tokens can provide additional $DYDX tokens as a reward, creating an opportunity for investors to earn a passive income while supporting the protocol.

Demand Driver:

Discounted trading fees:
$dydx token holders receive discounted trading fees on the dydx trading platform, providing an incentive to purchase and hold the token for frequent traders.

Speculation on revenue accruing to DAO-governed treasury with V4:
The upcoming V4 upgrade will introduce a DAO-governed treasury, enabling $dydx token holders to speculate on potential revenue generated from platform usage and governance decisions.

Value Creation:

The value created by dYdX is significant, providing users with access to perpetuals and leverage trading on a semi-decentralized platform. This allows traders to profit from market movements without owning the underlying asset. With a semi-decentralized approach, dYdX offers secure and transparent trading where users control their private keys while benefiting from the platform's liquidity and infrastructure.

Value Capture:

Value accrual to token: 
None. The dydx protocol does not use its token to capture the value it creates through supply and demand mechanisms.

Value accrual to protocol: 
The protocol currently captures value through revenue generated from fees, which accrue to the centralized dYdX Trading Inc. entity. There is no protocol treasury or $DYDX token-governed entity that captures this value.

Business Model:

The business model for dYdX protocol

Revenue comes from:
Fees are charged on all trades made on the platform.

Revenue is denominated in:
The currency of the traded asset.

Revenue goes to:
Centralised dYdX Trading Inc. Token rewards and fee reductions are offered to traders holding dydx tokens, but the current revenue does not go to a $DYDX token-governed entity.


Protocol Analysis.

Problems & Solutions
Centralized exchanges pose security risks and lack transparency, while current decentralized exchanges lack the necessary features for advanced trading such as perpetuals and leverage trading.

dYdX addresses these issues by offering a semi-decentralized platform that supports perpetuals and leverage trading. This allows for greater transparency and security while still providing advanced trading features.
Perpetual Protocol - a decentralized perpetual futures trading platform.
Serum - a decentralized exchange built on Solana blockchain with trading pairs including perpetuals and futures.
MCDEX - a decentralized derivatives trading platform built on Ethereum with support for perpetuals and other derivative products.

Investment Take

... coming soon

Tokenomics Timeline.

  1. 2021-08-03


    1 billion tokens launched.

  2. 2022-11-24

    Safety and Liquidity Module wind down

    Safety and liquidity module have been shut down after community vote.

  3. 2023-01-20

    First large unlock upcoming

    Due to large allocation to employees, investors and founders this upcoming unlock could be quite significant.

  4. 2023-06-14

    Token Upgrade due to new blockchain




Ecosystem Users.