BitWell Research – dYdX (DYDX) Project Analysis

1.Institute Short Review

dydx is one of the first decentralized futures exchanges to be established and launched with a usable product, an order book Dex, where traders trade peer-to-peer with a three-way game between market makers and long and short traders. dydx is built on Starkware, a two-tier Ethernet network, and uses the StarkEx trading engine to enable decentralized self-custody of assets. dydx offers a trading experience similar to that of a centralized exchange and uses a similar operating model to Cex. Currently its trading volume is the first among derivatives Dex driven by trading mining.

2.Project Description

dydx is an order book futures Dex and the current leader in the futures Dex track. After coming out with three leveraged trading products on the main ethereum network, the product went live in February this year with a perpetual contract product on the second layer network, and in early August, the product was officially launched. After the leveraged trading products, the perpetual contract product on the second layer network was launched in February this year, and in early August, the product was officially launched.

3.Token Role

DYDX is the platform’s native functional token and is used for the following functions.

  • Governance: DYDX token holders can submit network governance proposals and vote on them.
  • Protocol Incentive: Users can receive DYDX tokens as rewards based on their transaction volume on the dYdX platform.
  • Pledge: Users can pledge DYDX tokens to the Security Module to receive DYDX tokens as a pledge incentive. Please note that pledged DYDX may be subject to reduction due to shortage events, such as exchange solvency, smart contract attacks, or other events that dYdX governance deems to cause a shortage.
  • Fee Discounts: DYDX token holders enjoy lower transaction fees based on their DYDX holdings.

4.Token allocation

Total Supply: 1 billion

5.Investment Institutions

Paradigm, Polychain Capital, Andreessen Horowitz (A16Z), Three Arrows Capital, Wintermute Trading, Uncorrelated, Dragonfly Capital Partners, Electric Capital, Craft Ventures, Vy Capital, Caffeinated Capital, Kindred Ventures, 1confirmation, Abstract Ventures, Bain Capital Ventures, DeFiance Capital , Hashed, Scalar Capital.

6.Basic Information

Token Name: DYDX

Project website: https://dydx.exchange/

Contract: https://etherscan.io/token/0x92d6c1e31e14520e676a687f0a93788b716beff5