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Before introducing dydx decentralized exchanges, it is good to have a basic acquaintance with decentralized exchanges. In general, it can be said that decentralized exchanges provide almost the same services as centralized exchanges, with the difference that they do not need a third party or any intermediary. In simpler terms, decentralized exchanges are built on the Chinese blockchain platform. As a result, users do not need to authenticate to use them. In continuing this article, join us to introduce you to the dydx exchange fully.

What is a decentralized dydx exchange?

Decentralized exchange dydx is an exchange form on the platform of the network. Dydx exchange offers attractive and useful features such as powerful lending and lending systems, spot, margin transactions, and perpetual trading contracts. The purpose of dydx exchange is to transfer all its transactions and facilities on layer 2 of the Ethereum network. However, the dydx exchange has only been able to execute permanent contracts on the second layer of the network. The rest of the cases are currently operating in the same layer one.

Benefits of decentralized exchange dydx

• The most obvious weakness of decentralized exchanges is their very high commission costs. For this reason, sometimes, a user may pay a fee several times the total amount of the transaction for a small transaction. Decentralized dydx exchange is no exception. The dydx exchange has made it possible for users to complete their permanent contracts with very low and close to zero fees using its second-tier solutions.

• In this decentralized exchange, transactions are done immediately and without the need for the other party. This great feature of dydx is that every asset is offered as a pool. At the same time, users can borrow from this pool or invest in it. All of these items are managed thanks to smart contracts and do not require the constant presence of the user.

What is a dydx token?

In 2021, the dydx exchange launched its bohemian token called dydx. This currency code is written with the erc20 standard. To receive this token, it can be purchased directly from an exchange office or obtained by depositing in dydx or usdc pools. Dydx is a governance token; This means that members of the dydx community can use it to manage the second tier. Its applications include participation in voting and governance processes, offering cash extraction rewards, providing Layer 2 protocol liquidity in permanent contracts, and discounts on trading fees for dydx token holders.

How has the dydx exchange solved the low scalability of the Ethereum?

Perhaps one of the important factors in the popularity of dydx is the excellent solution of this exchange to solve the problem of the low scalability of the Ethereum. As you know, the Ethereum blockchain has very low speed and scalability. This means that although it has a lot of users, this blockchain can only perform 15 transactions per second.

The dydx exchange uses a solution called rollup to solve this problem. The roll-up solution performs transactions outside the Ethereum first layer network. Therefore, it removes a very heavy computational load from the main chain. This greatly reduces transaction costs and fees and greatly increases network throughput. On the other hand, the security of the Ethereum Decentralized Network is not harmed.

What services does the decentralized exchange dydx provide?

• Perpetual contract deals on dydx

Dydx exchange has provided the possibility of using 25 times leverage for its users’ transactions. You Can easily use this powerful lever to trade your longs and shorts in the cryptocurrency market. The remarkable thing about a dydx exchange is that the trading floor is only $ 10. This price is one of the lowest prices to start a transaction in similar exchanges.

You can now trade around 25 currency codes with dydx in the Permanent Contract Markets. These 25 currency codes are BTC, ETH, DOT, LINK, DOGE, AAVE, UNI, SOL, ADA, XMR, SUSHI YFI, 1INCH, AVAX, SNX, CRV, UMA, MATIC, MKR, FIL, ATOM, COMP, LTC, EOS, BCH.

• Margin trades in dydx

In dydx exchange, users can make margin transactions with five times leverage. The pairs of tradable currencies in margin trading are as follows:

ETH-HOUSE ، ETH-USDC ، DAI-USDC

• Spot deals on dydx

Trading, like margin trading, is done in a layer one bed. Spot transactions are offered in three methods: limit order, market equivalent price, and stop order. The tradable currency pairs in Spot trading are the same as the margin traded currency pairs.

• Lending on dydx

At the beginning of this article, all your assets and deposits will be deposited in the pool at dydx exchange. The interest you receive is funded by the borrower’s income and transferred to your assets. Of course, keep in mind that lending or depositing on dydx does not mean that your deposit will be locked until others’ transactions are done. Instead, you are free to withdraw from your account whenever you wish. Lending interest rates are also not fixed and follow variable formulas that depend on market conditions, transaction amount, etc.

• Borrowing in dydx exchange

Getting a loan at a dydx exchange, like getting a loan from another exchange or even a bank, requires a guarantee to repay the borrowed money. This guarantee works so that you must deposit at least 125% of the loan amount as a guarantee. After that, you will be given a loan, and you can deal with it. Note that this rate (125%) is more attractive than most exchange offices, which receive approximately (150%) as a guarantee.

The important point in dydx exchange lending system is that :
If the number of your assets is below 115% of the borrowed volume during the transaction, your assets will be liquidated. These strict rules are designed to protect lenders’ capital.

Types of decentralized exchange commissions dydx

• Perpetual contract fee

Permanent contract fees will vary depending on your order, a maker, or a ticker. Commitment orders may take some time to complete but do not harm the exchange liquidity. But on the other hand, ticker orders are orders that must be done immediately and instantly. Therefore, they reduce the liquidity of the exchange to some extent.

Commodity order fees vary between 0 and 0.05%, depending on the transaction volume.
Ticker order fees also fluctuate between 0.06 and 0.1 percent, depending on the transaction volume.
Of course, these commissions also include discounts, depending on the number of dydx tokens you have. These discounts also vary between 3 and 50% of the commission.

• Margin and spot trading fees

Also, In spot and margin transactions in dydx, homer orders do not have a commission, and ticker orders include a 0.03% commission.

• Lending and borrowing fees in dydx

Dy, The dydx exchange fee, received from the lending and borrowing transactions is calculated after withdrawing 5 5% of the transaction profit for the dydx protocol insurance fund. So 95% of the remaining interest is divided among the lenders. The interest rate varies depending on the amount of the deposit.

What are the features of this exchange?

In addition to the above, dydx decentralized exchange has other attractive features that have increased the popularity of this exchange in the world. These features include:

1. The dydx exchange has provided its users with excellent charts and analysis tools.
2. Dydx Decentralized Exchange uses China’s very powerful oracle link pricing because it wants its users to be comfortable with the speed and accuracy of pricing during the transaction.
3. The user interface or UI of this exchange is very good and simple. Users can use dydx features easily and without any hassle.