Introducing the new dYdX

The most powerful open trading platform for crypto assets

Today we’re excited to announce a new dYdX — the most powerful open trading platform for crypto assets. Central to this announcement is a brand new product that is entering Alpha on mainnet today — sign up here now!

The new dYdX supports:

  • Trading on margin with up to 4x leverage through custom, non-tokenized, positions
  • Borrowing and lending, with no minimums or lock up periods
  • Management of your portfolio of assets and positions

Background

Last year, we made an important decision to build user facing products in addition to the base protocol layer. In our view, this was the best way to generate usage of dYdX and better onboard users into open finance.

Our first product, expo, allowed users to go short or get leverage by buying into tokenized margin positions. Since expo’s launch in October, $10M+ of volume has flowed through expo/dYdX.

Over this time, we’ve continuously gathered feedback from our users and others in the open finance community. These are some of the most important things we learned:

  1. Crypto margin traders are sophisticated and want more advanced features
  2. Users want to borrow and lend assets directly
  3. Users often value using many different assets to collateralize positions
  4. Liquidity is critical

With this new version of dYdX, we are excited to launch a product that meets these needs and is a one stop shop for lending, borrowing, and margin trading crypto assets.

The Product

We’ve built a powerful product that will feel familiar to traders. dYdX supports lending, borrowing, and taking custom margin positions.

dYdX — Trade Page

Margin Trading

On dYdX you can enter into custom short and long positions with leverage up to 4x. While margin trading on dYdX, funds are automatically borrowed from lenders on the platform. dYdX integrates with the most liquid decentralized exchanges so you can trade without ever having to leave the platform. Collateral used to secure margin trades continuously earns interest, making sure you get the maximum yield on your capital.

dYdX — Account Page

Lending

With dYdX you can easily earn passive income on your crypto holdings. Any funds deposited to dYdX will continuously earn interest. Funds can be deposited and withdrawn at any time. Interest rates are automatic and dynamic, so you will always earn market rate without ever having to worry about setting specific interest rates.

Borrowing

You can use dYdX to borrow funds directly to their Ethereum wallet. Any supported asset can be borrowed so long as you maintain a 1.25x initial / 1.15x minimum collateral ratio. Borrowed funds can be used for anything, including as working capital, or trading on third party exchanges.

Performance Tracking

dYdX makes it easy to track your portfolio performance over time. The entire value and history of your positions, borrows, balances, and trades is displayed on the site so you’ll always have an up to date view of your holdings and performance.

What assets will be supported?

dYdX will initially support the ETH-DAI market. In the near future we’ll add additional markets with reasonable liquidity on DEXs.

The Protocol

To power the new product, we’ve built entirely new smart contracts that are both simpler and more powerful than the V1 contracts that powered expo. The new smart contracts have been audited by both Zeppelin Solutions and Bramah Systems, and no significant security issues were found.

The protocol is completely open to anyone to build on. The product we’ve built is just one of many that can be built on top of the underlying protocol. We’ve also built a fully featured Typescript library, which makes it easy to interact with the new dYdX protocol contracts.

We’ll be open sourcing the new smart contracts and Typescript library, as well as releasing the security audit reports alongside the public release of the product.

What does this mean for expo and Margin Tokens?

Expo and Margin Tokens will continue to exist for the foreseeable future. We continue to believe that one of the major benefits of Margin Tokens is interoperability across exchanges. Exchange adoption is a long term play however, and most users of margin tokens were traders coming to expo directly.

For these users, we saw several limitations with Margin Tokens:

  • Inability to enter at a specific custom leverage
  • Margin calls / liquidations occur for the entire position which limited the maximum size of the tokens
  • Limited by the predetermined start and expiration dates

As such, while expo will continue to operate, we expect volume to move from expo and toward dYdX over time.

Now what?

dYdX is currently in Alpha on mainnet and will be launching publicly soon. If you’re interested to join our Alpha — please reach out at contact@dydx.exchange!

To stay up to date with dYdX, please sign up for updates here!

Learn more

Join us!

If you’re interested to help us build the future of finance, take a look at our open roles!