About

dYdX is a permissionless perpetual futures trading exchange. The current offering, referred to as dYdX , is built on a Delegated Proof-of-Stake (DPoS) Layer-1 network developed using the Cosmos SDK and secured by the CometBFT consensus mechanism (a fork of Tendermint Core). To start trading, users connect a supported wallet to a supported network and deposit USDC or another supported token, which is then converted to USDC on Noble for use on dYdX. Users also have the option to deposit USDC directly from Coinbase onto the Noble Chain. dYdX can be accessed via a mobile application on iOS devices in eligible jurisdictions. Notably, no central party receives receives trading fees on this decentralized exchange.

Previously, dYdX offered a legacy protocol known as dYdX V3, a perpetual futures trading exchange built on a Layer-2 solution using StarkWare’s StarkEx scalability engine and Ethereum as the base settlement layer.

History

dYdX was founded by Antonio Juliano in July 2017 to build “a decentralized protocol for financial derivatives built on the Ethereum blockchain.”

In 2018, the dYdX team launched.-,V1%20Margin%20Protocol,-Brendan%20and%20I) its V1 Margin Protocol, which introduced flash loans and DEX aggregators. Following this, in September 2018 the dYdX team released Expo, a trading application that could be used to buy leveraged tokens. In 2019, the dYdX team released Solo, the second version of the dYdX margin trading protocol. In April 2019, the dYdX team released a new margin exchange product, and in September 2019 launched its own order book. In April 2020, the dYdX team launched a perpetual contract market for BTC, with ETH and LINK markets following thereafter. In April 2021, the dYdX launched its Layer-2 product built using Starkware, and in August 2021 the ERC-20 DYDX (now ethDYDX) token was launched alongside the dYdX Foundation. On Sept. 13, 2023, the dYdX Foundation announced it had deployed smart contracts on Ethereum for the migration of ERC-20 ethDYDX at a 1:1 ratio for both (i) ERC-20 wethDYDX on Ethereum, and (ii) native DYDX on dYdX Chain. ERC-20 ethDYDX migration became fully available on Oct. 26, 2023, when the first block of the dYdX Chain was created by dYdX Chain validators. On Nov. 28, 2023, the dYdX Chain fully launched, which included the initiation of trading rewards and the dYdX Launch Incentives Program on the dYdX Chain.

The dYdX community voted in favor of launching the first-ever DYDX buyback program, reinforcing its long-term commitment to strengthen the DYDX token’s alignment with platform’s long-term growth and network security. Starting March 24, 2025, 25% of net protocol fees will be used to purchase DYDX from the open market every month, with active governance discussions considering an increase up to 100% over time. This initiative strengthens DYDX’s tokenomics by reducing circulating supply and aligning token holders with dYdX’s continued growth.