DYDX is a decentralized exchange governance token and is considered an older cryptocurrency. It has become more active recently and is showing signs of a sustained rebound.
DYDX is a decentralized finance platform that offers advanced trading tools, including cryptocurrency futures, margin trading, and spot trading, all conducted on a blockchain-based exchange. It operates without traditional financial intermediaries, providing a transparent, secure, and efficient trading experience. Launched in 2017, DYDX was the first protocol to introduce decentralized margin trading and derivatives leverage to cryptocurrency.
With the leading derivatives platform DYDX upgrading to version V4, it has introduced its own layer-one blockchain, the 'DYDX chain', based on Cosmos SDK and Tendermint, achieving a leap towards complete decentralization. This advancement aims to enhance scalability, speed, and interoperability.
DYDX is not only a platform token but also a governance token. This means that if investors hold DYDX, they can enjoy various rights.
First, there are trading fee discounts. Users holding DYDX tokens can enjoy trading fee discounts, which will increase as the amount of DYDX tokens held by the user increases.
Secondly, there is governance power. DYDX token holders have the right to participate in the governance of the DYDX protocol, including but not limited to voting on protocol upgrades and parameter adjustments.
Next is the rewards. The DYDX protocol regularly allocates a portion of the platform's transaction fees to reward DYDX token holders, who can receive corresponding rewards based on their holdings.
The platform released the DYDX token in 2021 under an independent Swiss organization called the DYDX Foundation. The total supply is 1 billion DYDX tokens, with plans to complete issuance from August 2021 to August 2026 over five years.
The founding team of DYDX has extensive software development experience and backgrounds in the blockchain industry, along with experience in founding decentralized projects. Additionally, the development strength of the entire project team is strong, supporting its growth as a technology-driven project.
DYDX is a cryptocurrency company with deep roots in the decentralized finance space. It has maintained its position as one of the top five permanent decentralized exchanges, despite fierce competition and market share erosion during the DeFi summer, as well as the LUNA crash, which locked billions in total value in decentralized protocols.
DYDX has continuously evolved over the years, from offering simpler leveraged token protocols on Ethereum, to collaborating with Starkware to build a layer-two decentralized finance protocol to reduce high Ethereum fees, and finally launching its own application chain DYDX layer-one public chain and supporting DYDX token on Cosmos. Looking ahead, the project will seek ways to achieve its goals through vertically integrated teams to accelerate product progress.
On November 13, 2023, DYDX conducted its first transaction after the upgrade, completing the migration from StarkWare to the Cosmos application chain. DYDX updated to the V4 token economic model, granting DYDX a stronger ability to enhance its value. The updated token economic model empowers DYDX's value appreciation capabilities.
Current data shows that GMX and DYDX have similar daily trading fee revenues, but still lag behind UNI. Recently, both generated fees of around $300,000, which is significantly less than centralized exchanges. However, it is expected that at the peak of this bull market, their trading volumes will not only surpass UNI but also many centralized exchanges.
A new week has begun, and the weaker altcoins should start to gain momentum. The bottoming out and recovery of the market in October 2024 is set, so prepare to welcome the most festive market in a bull run.
