dYdX Full Guide: A DeFi Margin DEX – Asia Crypto Today

DeFi protocol dYdX might seem like another trading and lending platform based on Ethereum, but that’ only the tip of the iceberg. Probing further, you’ll find out that this protocol is challenging the status quo to take Decentralized Finance to new heights.

Margin trading, derivatives, and options are the relevant tools that power traders use. Unfortunately, in the crypto space, these tools are mostly available only on centralized exchanges like Binance, Huobi, and Kraken.

With dYdX, the entire traditional trading spectacle is now built in a permissionless and decentralized mechanism.

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Antonio Juliano, founder of dYdX

The five-person empire behind dYdX built and developed a margin trading protocol based on Ethereum. This platform provides users the freedom to create their own cryptocurrency-based financial products such as short sells, long positions, and interest-bearing loans. Contrary to traditional finance, dYdX technology is trustless as it does not require a middleman for transactions.

Decentralized lending and borrowing isn’t a novel idea in the crypto arena. It has already existed in DeFi under Compound and MakerDAO. However, dYdX is pivoting towards generating more advanced tools on the blockchain.

This is also free for anyone to use and build asset management systems that run on smart contracts. As of