dYdX Releases Business Model – Margin Trading DEX Soars in Volume – DeFi Rate

dYdX – the open trading protocol for DeFi – announced their plans to establish a business model around their product which includes elements of DEX trading, lending and derivatives.

The permissionless margin trading platform will introduce trading fees starting on March 10th with the goal to earn revenue as a company and incentivize liquidity on dYdX. The fees will derive from a percentage of trade volume with two different tiers based on volume.

Makers, users whose trade orders add depth and liquidity to the order book, will not incur fees across any trading pairs. Instead, takers will incur fees as there trade orders remove liquidity from the exchange.

Takers with orders over 0.5 ETH will pay 0.15% and 0.50% if it’s less than 0.5 ETH. In addition, the DAI/USDC pair will have a separate fee model where takers in excess of 0.5 ETH will incur a 0.05% trading fee compared to 0.50% for takers of less than 0.5 ETH.

Graphic via Announcement Post 

Historically, dYdX has stated plans to capture value either through the protocol or a product. The new revenue stream is an attempt to monetize their exchange product while a value capture mechanism on the protocol level is continually being explored.

In practice, tokenizing the protocol layer is a common move for crypto projects at large, allowing a native