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About Dydx
dYdX is a leading decentralized exchange for perpetual contracts, enabling traders to go long or short on crypto assets with leverage. Founded by Antonio Juliano in 2017 and originally built on Ethereum, dYdX has evolved into a standalone Layer 1 blockchain optimized for derivatives trading.
The platform pioneered decentralized perpetuals at scale, processing billions in daily volume during peak periods. Unlike AMM-based perp DEXs, dYdX uses an orderbook model matching the experience of centralized exchanges but with self-custody benefits. The dYdX Chain, built with Cosmos SDK and launched in 2023, provides sub-second block times and no gas fees for trading.
Key differentiators include deep liquidity through market makers, up to 20x leverage on major pairs, and a sophisticated trading interface with advanced order types. The protocol is governed by DYDX token holders and distributes trading fee revenue to stakers. With its own chain, dYdX has achieved full decentralization with no central operators controlling the orderbook or matching engine.
Key Features
Perpetual Contracts
Trade BTC, ETH, and 100+ assets with perpetual contracts and up to 20x leverage
Orderbook Trading
Professional trading experience with limit orders, stop-losses, and deep liquidity
dYdX Chain
Purpose-built L1 blockchain with sub-second finality and zero gas fees for trading
Self-Custody
Trade without depositing to a centralized entity—funds remain in your control
No KYC Required
Permissionless access to derivatives trading from any wallet
DYDX Staking
Stake DYDX to secure the chain and earn a share of trading fees
Use Cases
Leveraged Trading
Amplify gains (and losses) on crypto price movements with leverage
Hedging Positions
Short to protect spot holdings against price drops without selling
Market Making
Provide liquidity on the orderbook and earn from bid-ask spreads
Arbitrage
Trade price differences between dYdX and other venues
Staking Yield
Stake DYDX to earn trading fee revenue distributed to stakers
Project Info
Frequently Asked Questions
dYdX is a decentralized perpetual futures exchange running on its own blockchain (dYdX Chain). You deposit funds, trade perpetual contracts with leverage, and withdraw—all without KYC or a centralized intermediary. The orderbook and matching engine are fully on-chain, operated by decentralized validators.
v3 ran on StarkEx (Ethereum L2) with a centralized orderbook operated by dYdX Trading Inc. v4 (dYdX Chain) is fully decentralized—a dedicated Cosmos blockchain where validators run the orderbook. v4 has more markets, no gas fees, and trading fees go to stakers. v3 is deprecated; all new trading is on v4.
dYdX is one of the most established perp DEXs with billions in trading volume. Funds are secured by Cosmos validators with substantial stake. Risks include smart contract bugs, validator collusion (theoretical), and liquidation from leveraged trading. Always use proper risk management and never trade more than you can afford to lose.
dYdX uses a maker-taker fee model. Makers (limit orders that add liquidity) typically pay 0.02% or less; takers (market orders) pay around 0.05%. High-volume traders get discounts. There are no gas fees for trading—you only pay network fees when depositing/withdrawing. Trading fees are distributed to DYDX stakers.
You can bridge USDC from various chains using the built-in bridge or third-party bridges like Squid. Deposit USDC, which serves as the collateral for all trades. Withdrawals work the same way—request withdrawal and bridge back to your preferred chain. The process typically takes minutes.