dYdX - Reliable decentralization of derivatives trading

dYdX has been in the public eye since DYDX, an airdrop token. This article presents the trade value of the dYdX token, its identifiers and the value of the DYDX token.

What is dYdX?

dYdX is a decentralized derivatives and space trading platform that includes three trading partners of ETH, DAI, and USDC while focusing on decentralized order-style perpetual contracts.Since September 15, 2021, perpetual trading partner dYdX is based on USD with ETH, BTC, SOL, AVAX, ATOM, ADA, AAVE, SUSHI, DOT, COMP, LINK, CRV, MATIC, LTC, UNI, SNX. 24 perpetual contract exchanges for EOS, YFI, UMA, MKR, FIL, DOGE, 1INCH, BCH.dYdX uses Starkware's ZK-Rollup in 2 layers, without fuel, and has a maximum speed of 25x.(BTC and ETH can be opened with 25x leverage and other trading contracts can be opened with 10x leverage).

What are the benefits of dYdX?

In terms of use, dYdX is a derivative of DEX in order book format, with the following advantages:

1.Leverage the API to place orders across the entire website.

2. Industry derivatives focus on L2 (using Starkware's ZK-Rollup), and the industry went for the L2 system,The system temporarily issues ZK (Zero-Knowledge) proofs for Ethereum smart contracts to prove that state changes in L2 are valid.Funds must be deposited on the Ethereum smart card before trading on dYdX. Once placed in L2, there is no charge for all exchanges and no fuel charges.

Three.Quick payment and quick cancellation.The market is assembled off the chain and batched until assembly and certification without knowledge of the chain. This prevents early conversions and allows an immediate exchange without waiting for the exchange to be mined. Trading on the dYdX is as fast as trading on a mid-sized exchange. Exclusion points: 1) accelerated withdrawal (fixed limit of $200,000) and 2) regular withdrawal (about 3 hours).

4.Oracle Optimization Award.Fees are calculated by Oracle using STARK as the signature, so the value can be used immediately after signing without waiting for the exchange to be mined. This significantly improves the operational security of the system against flash crashes and allows real-time liquidation.

5.Security - Multi-Factor Authentication

dYdX as security insurance for DEX derivatives

dYdX for censorship resistance,dYdX uses various authentications such as Ethereum key authentication, STARK key authentication, and API key authentication.STARK Keys and API are key ECDSA partners in the STARK Curve.

1. Ethereum Key Authentication

The maximum amount of authentication comes from the private key of the Ethereum account.When the money-in-the-money is in the L2 system, Ethereum is essentially running the money-in-the-money. Ethereum keys can also be forced to close the account address and log out of the system if the L2 owner (dYdX and Starkware) accidentally logs out or verifies the request.

Ethereum key authentication is required to 1) register a new user or STARK key, 2) create or delete an API key, 3) force termination or request a redemption key experience.

2. STARK Key Authentication

The second level of recognition is the STARK key.In L2 systems, authentication is handled by a separate key pair, the STARK key pair.

STARK key authentication is required for the following tasks: 1) placing an order, 2) doing an exclusion.

3. API Key Authentication

Three-factor authentication contains the API key, password, and password., they are only used to identify API requests for dYdX (i.e. cancel and refund commands) that do not affect the L2 system.

When the user logs in, the server uses this signature as a seed to determine the creation of key API certificates.The API key has three sections.

1)API key- UUID that identifies the credentials

2)assassination- Confidential strings that are not provided with the application and used to create the HMAC

Three)Your passwordThe secret strings sent with each request are used to encrypt/decrypt the dYdX database secret and are never stored in the dYdX database.

API keys can be added and maintained by final content. API key signing is required for all private content requests that are not signed with the Ethereum key.

In addition,dYdX also manages the security of the reward distribution of the DYDX token.

Payments are supported by external contracts

Image source: https://docs.dydx.community/dydx-governance/resources/technical-overview#liquidity-module

The purpose of this system is 1)The computation works through a network of decentralized oracle signers, and 2)Announcing the DYDX token gift that customers receive using the dYdX Set 2 exchange.

Gifts are stored in the Merkle tree, which contains the gifts each user has received since distribution began. Dydx partnered with the Chainlink Oracle system to publish the chain's reward data and used IPNS to disseminate the trade data that Chainlink used to build the Merkle tree. IPNS allows you to post data changes for the new hour in the same IPNS connection as the previous hour, so the location of the data does not change. Thus, the system can perform the necessary counts and secure the distribution of tokens.

Classification and role of the DYDX token

First distribution of tokens

1) Check the mining gift so that users can reach the payment value before the end of epoch 0. Any gifts not received will be discarded and distributed to the community fundraiser. When the first exchange restriction is lifted, DYDX tokens received through retroactive mining gifts are permanently valid and replaceable.

2) payment;

3) Remuneration of the liquidity provider.

Gift shops and valuables are expected to reopen after the deadline.Please wait 7 days to apply..

First distribution of 5-year tokens

Image source: https://docs.dydx.community/dydx-governance/start-here/dydx-allocations

DYDX tokens for current and future traders, entrepreneurs and advisors: 30% of DYDX tokens will be closed 18 months after release. 40% is locked up for an average of 19-24 months. At 36 months, an average of 10% is blocked from 37 to 48 months.

Distribution of tokens after 5 years

Image source: https://docs.dydx.community/dydx-governance/start-here/dydx-allocations

After 5 years, management can use the highest annual increase to increase DYDX production.

Token Distribution Curve

Image source: https://docs.dydx.community/dydx-governance/start-here/dydx-allocations

The token distribution curve for the next 6 years can directly affect the distribution of DYDX tokens.

token function

1) Management;DYDX allows insurers to comment and vote on protocol changes.

2) Reduced price.

discount price statement

Image source: https://docs.dydx.community/dydx-governance/start-here/trading-fee-discount

In the list of discounts, you can see that the more DYDX tokens you hold, the higher your discount rate will be and you can save up to 50%.

3) Liaison between vendors, suppliers and process participants 2the comeback.

Comparison of dYdX analysis and regular data protocol

The perpetual protocol is a continuous contract DEX project with the best data before the dYdX announcement. Therefore, we compare and analyze data from dYdX and Perpetual Protocol.

trading volume

dYdX Daily Volume

Photo credit: https://metabase.dydx.exchange/public/dashboard/5fa0ea31-27f7-4cd2-8bb0-bc24473ccaa3

As of September 14, 2021, dYdX's daily revenue was $93.11 million, and on August 29, 2021, daily volume increased by a total of $2,558.94 million. dYdX's daily volume market has shown steady growth since August.

Perpetual Protocol Daily Volume

Image source: https://dune.xyz/yenwen/perpetual-protocol_2

As of September 14, 2021, Perpetual Protocol's daily revenue was $109.31 million, and on May 19, 2021, daily volume increased to $551.14 million. Perpetual Protocol products have shifted horizontally since June.

By comparing dYdX with Perpetual Protocol, it can be seen that as of September 14, 2021, the market volume of dYdX is approximately 9 times that of Perpetual Protocol, and at its historical peak, modern products at dYdX are approximately 5 times. of the Perpetual Protocol. Currently, dYdX is best for perpetual protocol when it comes to daily packaging information.

7-Day Average Daily Trading Chart for dYdX

Photo credit: https://metabase.dydx.exchange/public/dashboard/5fa0ea31-27f7-4cd2-8bb0-bc24473ccaa3

dYdX had 1196 traders as of July 25, 2021 and had the largest number of traders with 8784 as of August 7, 2021.

Perpetual Protocol 7-Day Average Daily Active Trader Chart

Photo credit: https://metabase.dydx.exchange/public/dashboard/5fa0ea31-27f7-4cd2-8bb0-bc24473ccaa3

Perpetual Protocol 7-Day Moving Average Daily Volume decreased from 349 on May 10, 2021.

A comparison of the two shows that dYdX has more robust traders than the perpetual protocol lately.

concludes

With the use of dYdX,dYdX provides the business intelligence and risk management experience that CEX provides, but not DEX.(order book mode can control revenue and not stop),It also offers censorship resistance that DEX and CEX do not have.. the same time,dYdX does not require KYC., you can create an account directly with your wallet and email. Therefore, for FX derivatives, dYdX has the upper hand. Recently, dYdX users and the packaging industry have also been very good with the perpetual protocol. Although dYdX may have a place in the derivatives market of many exchanges in the medium term, in the future it will require constant monitoring of changes in the consumer and packaging sectors.

information

https://stats.synthetix.io/#staking

https://www.chainnews.com/articles/536427861778.htm

https://www.chainnews.com/articles/675957607302.htm

https://www.chainnews.com/articles/653539102473.htm

https://docs.synthetix.io/litepaper/chinese/

https://staking.synthetix.io/debt

https://staking.synthetix.io/staking