DYDX

dYdX is a decentralized trading platform that focuses on crypto derivatives, including perpetual contracts, futures, and margin trading. Built on the Ethereum ecosystem, it aims to offer non-custodial trading with high leverage while providing scalable performance through Layer 2 technology. The platform combines an off-chain order book with on-chain settlement to reduce gas costs and improve execution speed compared with purely on-chain order books.

Markets on dYdX typically include popular crypto pairs such as BTC/USD and ETH/USD perpetual contracts, along with other supported assets. Traders can take long or short positions with margin, and funding payments are exchanged between long and short positions to align contracts with the underlying index price. Risk controls include maintenance margins and an insurance fund to cover extreme events. The architecture often relies on Layer 2 scaling, with components that validate trades and manage risk while settling positions on-chain, using technologies designed to increase throughput and reduce trading friction.

The platform has a governance and token component. The DYDX governance token is used to participate in protocol governance, with holders able to vote on proposed changes and treasury allocations. The token also supports incentive programs, including staking and fee rebates for certain participants.

dYdX was founded by Antonio Juliano and evolved from an earlier centralized-exchange model into a DeFi derivatives protocol. It has undergone major upgrades, including v3 developments, to enhance scalability, liquidity, and security. The project is overseen by the dYdX Foundation and related ecosystem teams, operating within the wider DeFi landscape and facing competition from other decentralized derivatives platforms.