🪙DEX: Trend in Cryptocurrency Exchanges

Trading strategy programs of QTC are currently running on dYdX

About dYdX

dYdX is a decentralized derivatives exchange for perpetual contracts and margin trading, providing order book-style blockchain digital asset trading services, mainly providing perpetual contract trading functions. Compared with Uniswap, dYdX is closer to the operation of traditional financial markets.

PS. Perpetual contracts are an innovation of the blockchain industry based on delivery futures in traditional finance. They eliminate the periodic delivery link, and users can hold their positions for a long time to avoid the trouble caused by delivery. Perpetual contracts usually provide higher leverage, higher risk and speculative attributes than delivery contracts, and are suitable for short-term traders, while delivery contracts are more suitable for some hedging users.

Advantages and Potential of dYdX

Although most derivatives transactions still take place on CEX, mainly Binance, Bybit, BitMex, OKEx, etc., as DeFi continues to improve user experience, it is an inevitable trend for traders to switch from CeFi to DeFi. Compared with CEX, "off-chain matching + on-chain settlement" design of dYdX solves the security and transparency issues of the former, and also ensures higher performance and response speed, which is enough to support greater user traffic.

In the DeFi derivatives track, dYdX is in a leading position in terms of liquidity attraction, trading volume, and user experience. In addition to its first-mover advantage and leading position, its main advantages include its outstanding technical capabilities, the support of top capital and liquidity providers, the attractiveness of transaction mining, and its CEX-like user experience, which makes the migration cost of CeFi users lower.