What Is dYdX? | Binance Academy

Key TakeawaysdYdX Unlimited is one of the biggest upgrades in its history, aimed at solidifying dYdX as DeFi’s pro trading platform.
Key features include Instant Market Listings, MegaVault, a revamped Trading Rewards Program, and a lucrative Affiliate Program.
dYdX supports over 140 markets, has processed $240 billion in total trading volume, and is governed by community proposals, with over 170 submitted to date.
Users can benefit from passive income opportunities through MegaVault and enjoy instant payouts on affiliate commissions.
What Is dYdX?dYdX is a DeFi pro trading platform, offering a fully decentralized, community-governed ecosystem where traders can access advanced tools typically available on centralized exchanges. Launched with a mission to make financial markets more open and accessible, dYdX was the first platform to introduce decentralized margin trading and derivatives and pioneered both flash loans and DEX aggregators in 2018. Today, it has grown into a leader in decentralized trading, boasting over 140 markets, more than 170 governance proposals from an active community, and a total trading volume of $240 billion, with a daily trading volume of around $1 billion. dYdX empowers its users with high-performance trading features, including perpetual contracts, instant market listings, liquidity provisioning, and new reward structures that incentivize trading activity.
Now, with the launch of dYdX Unlimited, dYdX is taking another bold step forward, enhancing its capabilities to provide a seamless and professional trading experience in the DeFi space.
What Is dYdX Unlimited?dYdX Unlimited is a transformative upgrade that introduces a range of features designed to enhance user experience, provide more opportunities for passive income, and make dYdX a top choice for serious DeFi traders. With dYdX Unlimited, users can list and trade any market instantly with liquidity, earn yield on stablecoin deposits, and participate in a more rewarding affiliate program.
This upgrade marks a significant evolution for dYdX, empowering users with more control, flexibility, and reward mechanisms. Let’s dive deeper into the core features that make dYdX Unlimited a standout release.
How Does It Work?Instant market listingsWith dYdX Unlimited, users can list and trade any market instantly, without needing governance approval. This permissionless feature opens the door for users to quickly create markets for established and new crypto assets, or even novel asset types. By making new markets available almost immediately, dYdX can be the first place you trade new perps.
To ensure initial liquidity for these newly listed assets, the protocol requires an upfront deposit of 10,000 USDC, which is locked for 30 days. Once deposited, the liquidity is immediately activated via the MegaVault, supporting the market from day one. After the 30-day period, users have the option to withdraw or maintain their deposit based on the market's ongoing liquidity needs. This setup ensures a robust trading environment, where new listings are backed by sufficient liquidity right from the start.
MegaVaultMegaVault is at the heart of dYdX’s liquidity strategy, designed to keep all markets on the platform efficiently funded. By depositing USDC into MegaVault, users can earn passive yield while contributing to the liquidity pool that powers the dYdX ecosystem. This liquidity pool distributes funds across various markets, helping to ensure stability and minimize slippage, particularly for newly listed assets.
Depositing into MegaVault is simple. Users begin by transferring USDC to their dYdX wallet, which they can then allocate directly into MegaVault. Depositors earn yield based on their share of the pool, benefiting from trading fees and a portion of the protocol’s revenue. MegaVault operates with a dynamic allocation strategy, where funds are deployed across different sub-vaults and market-specific pools, ensuring liquidity is available wherever it’s needed. This passive income opportunity appeals to users looking to maximize yield on their stablecoins without the need for active management.
Affiliate ProgramThe dYdX Affiliate Program is designed to drive user acquisition while rewarding affiliates with lifetime commissions. Affiliates earn a percentage of the trading fees from every referred user, creating a steady income stream as long as the referrals remain active on the platform. This program is particularly appealing because commissions are paid out instantly in USDC, making it easy for affiliates to track and realize their earnings.
Before being able to access their unique affiliate link, users need to generate a trading volume of at least $10,000. This measure was passed by the dYdX community in order to protect the protocol. From there, affiliates can earn up to $3,000 per month per referral, with top-tier VIP affiliates eligible to earn up to $10,000 monthly. In addition to lifetime commissions, VIP affiliates gain exclusive perks, such as access to premium events, personalized support, and bonus rewards. The Affiliate Program not only incentivizes community growth but also fosters a network of advocates who help drive dYdX’s visibility in the market.
Trading Rewards ProgramdYdX’s Trading Rewards Program has been reimagined to offer greater incentives for both traders and market makers. Under this program, participants earn DYDX tokens based on their trading volume and engagement on the platform, with a fee-weighted reward system that incentivizes trading across different markets. Traders receive a 2x multiplier for fees paid in non-top 5 markets, encouraging exploration of less-traded assets and enhancing overall liquidity.
Besides the instant rewards users receive with every trade, some rewards are distributed retroactively at the end of each month. Over the course of four months, $6 million in DYDX tokens will be awarded, with 60% allocated to market maker incentives and 40% dedicated to trader rewards. This program aligns with dYdX’s vision of rewarding active participation, turning every trade into a win for users. By creating a more engaging reward structure, dYdX encourages higher trading volumes, helping to foster a vibrant and liquid market environment.
What Makes dYdX Unique?dYdX Unlimited offers several key features that differentiate it from other DeFi platforms:
Instant Market Listings: Instantly List and Trade Any Asset With Liquidity
dYdX Unlimited enables users to instantly create and trade markets without governance approval. This innovation supports the rapid listing of diverse assets across ecosystems like Solana, Ethereum, and more, making it easier than ever to access new markets.
MegaVault: Your Gateway to Automatic Liquidity and Yield
By pooling user deposits in USDC, MegaVault ensures continuous liquidity across dYdX’s markets. Users benefit from a stable yield, earned through trading fees and market-making activities, with no need for active management.
Affiliate Program: Lifetime Commissions and Instant Payouts in USDC
Affiliates earn lifetime commissions on referred users, paid instantly in USDC. This feature creates a sustainable earning opportunity while promoting platform growth through community-driven referrals. VIP affiliates enjoy additional benefits, making this one of the most attractive affiliate programs in the DeFi space.
Trading Rewards: Turn Every Trade Into a Win on dYdX
The new Trading Rewards Program incentivizes engagement by offering DYDX tokens for trading activity. With a 2x multiplier on certain markets, traders are encouraged to explore beyond the top 5 assets, driving liquidity across the platform.
What Is the dYdX (DYDX) Token?The DYDX token powers the dYdX ecosystem, serving as both a utility and governance token. Token holders have the right to propose and vote on changes to the protocol, ensuring that dYdX remains decentralized and community-driven. DYDX is also used to reward participants, including traders, market makers, and liquidity providers. The token plays a pivotal role in aligning the community’s interests, fostering an ecosystem where users are incentivized to contribute to platform growth and sustainability.
The dYdX EcosystemdYdX’s ecosystem is supported by a network of key participants who drive liquidity, governance, and innovation on the platform. These participants include:
Traders: dYdX caters to professional and retail traders alike, offering a wide range of markets, advanced trading tools, and opportunities to earn rewards through active participation.
Market Makers: Essential to dYdX’s liquidity, market makers contribute to price stability, especially in newer and less liquid markets, enhancing the trading experience for all users.
Community Members: dYdX’s community participates in governance through proposals and voting, with over 170 proposals submitted to date, shaping the protocol’s direction and policy decisions.
The collective effort of these participants strengthens dYdX’s ecosystem, making it a reliable and resilient platform for professional trading.
How to Get Started on dYdXTo start using dYdX, users can follow these simple steps:
Deposit Funds: Transfer USDC into your dYdX wallet.
Explore Markets: Browse the various markets available and choose assets to trade.
Deposit & Trade: Participate in MegaVault for passive yield or engage in trading to earn DYDX rewards.
The user-friendly interface and comprehensive onboarding resources make it easy for new users to dive into the dYdX ecosystem and start trading or earning immediately.
What’s Next for dYdX?dYdX Unlimited is just the beginning.
A host of additional enhancements are expected to become available in the coming months, including new integrations with popular wallets and third-party services, permissioned keys, instant deposits, and more innovative features that will further improve your trading experience. These updates will continue to refine the platform, making dYdX a leading choice for DeFi traders.