Everything you need to know about this major DEX update

dYdX, the crypto trading platform that is reinventing itself

Founded in 2017, dYdX has quickly established itself as a leading decentralized exchange (DEX), specializing in the trading of cryptocurrency derivatives.

The platform is particularly recognized for its commitment to innovation and decentralization, offering users full control over their funds while allowing them to trade a wide variety of cryptocurrencies.

dYdX Unlimited, the biggest update to the platform to date, marks a major turning point in the evolution of dYdX. This update aims to revolutionize decentralized trading by introducing a set of innovative features that improve user experience and open up new possibilities for traders and liquidity providers.

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Here are all the new features brought by this update ????

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Revolutionizing decentralized trading with Instant market listings

dYdX Unlimited allows users to create and trade new markets instantly, without governance approval. This permissionless listing model offers unparalleled speed and flexibility, allowing users to access a variety of cryptos and emerging markets.

To create your own marketplace, an initial deposit of 10,000 USDC is required to ensure initial liquidity, and MegaVault provides automatic liquidity support upon marketplace launch.

Interface for confirming the launch of a market on dYdX

The 10,000 USDC is then locked for a period of 30 days, after which it is possible to recover your funds. Although launching a market on dYdX is available to anyone without a governance decision, the amount of liquidity provided, as well as the blocking duration of USDC, can be modified by a governance vote.

Thanks to this new feature, dYdX users will have access to markets faster than on most centralized exchanges (CEX) and DEX.

MegaVault: dYdX’s automated liquidity solution

MegaVault acts at the heart of the Unlimited update by providing automatic liquidity to markets on dYdX while allowing liquidity providers (LPs) to easily generate yield with their USDC.

Interface you dYdX MegaVault

MegaVault works by aggregating user deposits and proactively managing the distribution of liquidity across dYdX's markets, improving market depth and stability.

Through MegaVault, dYdX users can passively participate in generating returns without having to actively trade. Additionally, LPs can deposit and withdraw their USDC at any time.

MegaVault is an aggregate of sub-vaults, which deploy a specific market-making strategy. When a user deposits USDC, they receive a proportional share of the MegaVault's net worth.

The USDC deposited are distributed among the sub-vaults, allowing each LP to participate indirectly in market making. Yield is generated by market activities and protocol revenue, aggregated and shared among depositors based on their participation.

Diagram representing how the MegaVault works

The governance of dYdX plays a key role in the operations of MegaVault, notably through the election of a “ operator » responsible for managing the distribution of USDC between the different sub-vaults.

Diagram representing liquidity management on the MegaVault

In summary, MegaVault is a key part of the dYdX Unlimited ecosystem that allows Instant market listings to operate efficiently. It ensures sufficient liquidity upon the launch of a new market, allowing users to start trading immediately and frictionlessly.

Try dYdX now: the preferred DEX for crypto traders!

A revamped revenue sharing system to encourage engagement

dYdX Unlimited introduces a revamped trading rewards program and a new affiliate program for the platform.

The first aims to reward traders and market makers with DYDX tokens, based on their trading volume and engagement on the platform. This program encourages increased participation and deeper liquidity.

The second is designed to drive new user acquisition and community engagement. Sponsors can thus access 2 levels:

• Standard: Referrers can earn up to 15% of fees (taker orders) for each referred user, with earning potential of up to $3,000 per referral over a 30-day period;
• VIP: VIP referrers can earn up to 50% of the fees (taker orders) of each referral, with commissions of up to $10,000 per referral over an equivalent period.

Both tiers offer lifetime commissions on referred users, which are paid instantly in DYDX tokens.

The crucial importance of smooth onboarding for dYdX

The dYdX Unlimited update also aims to facilitate liquidity inflows with Instant deposits: a solution to accelerate the onboarding of platform users.

Indeed, onboarding, or the process of integrating a user, is a crucial element for the success of any trading platform. Smooth and intuitive onboarding attracts and retains users, while a complex and tedious process risks discouraging them. In the case of dYdX and its instant deposits, the importance of seamless onboarding is amplified.

Thus, dYdX focuses on simplifying onboarding, allowing users to start trading quickly and without difficulty. The objective is to significantly reduce the “ time-to-trade ”, the time needed to go from connecting to the protocol to trading.

dYdX's instant deposits, accessible in less than a minute, are a major asset for attracting users, particularly those accustomed to centralized platforms where onboarding is generally simpler. Instead of waiting for typical fund transfer times, often over 18 minutes, users can instantly access their funds on the dYdX Chain.

Interface for making a deposit on the dYdX Chain via the Instant deposit functionality

This feature supports the transfer of cryptocurrencies (via a bridge) from all blockchains compatible with the Ethereum Virtual Machine (EVM), as well as direct deposits from major centralized platforms like Coinbase, Binance or Robinhood. Users can also use the “ Fiat Onramp » via MoonPay to directly purchase USDC on the dYdX Chain.

A major update, where governance takes on its full meaning

With the dYdX Unlimited update, the eponymous platform reaffirms its leading position as a DEX in the crypto derivatives markets.

Beyond a simplified and smoother user experience, the dYdX Unlimited update brings innovative features such as “ l’instant market listing », allowing users of the platform to create new markets.

By proposing initiatives to encourage the engagement of its users, dYdX demonstrates its desire to build community loyalty through a virtuous approach.

In addition, the governance of dYdX is once again in the spotlight because holders of DYDX tokens can, among other things, vote to modify the parameters of the “ MegaVault », propose new features for the platform and thus actively participate in the decisions that shape the future of the ecosystem.

In summary, with this new update, dYdX continues to offer major innovations, reaffirming its pioneering position in its sector, while relying on decentralization values, dear to the crypto ecosystem.

Try dYdX now: the preferred DEX for crypto traders!