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⏰ Time Stamps ⏰
1:39 What is dYdX?
3:20 Margin Trading Features
6:40 Lending on dYdX
7:50 Borrowing on dYdX
9:25 Margin Trading Walkthrough
12:23 Trading & Lending Walkthrough
13:47 Borrowing Walkthrough
14:43 Fees on dYdX
16:30 Trading Bots at dYdX
20:15 dYdX vs. DAI vs. Synthetix vs. Compound Finance
📺 Other Videos 📺
► Multicollateral DAI: https://www.youtube.com/watch?v=wW1IEZeWY4k
► Synthetix: https://www.youtube.com/watch?v=5vVb02obDDo
► Compound Finance: https://www.youtube.com/watch?v=FUhlxX0pYQo
⛓️ 🔗 Project Links 🔗 ⛓️
► Website: https://dydx.exchange/
► GitHub: https://github.com/dydxprotocol/
► Docs: https://docs.dydx.exchange/#/
► Twitter: https://twitter.com/dydxprotocol
► Telegram: https://t.me/joinchat/GBnMlBb9mQblQck2pThTgw
► Blog: https://medium.com/dydxderivatives
► Reddit: https://www.reddit.com/r/dydxprotocol/
📰 Resources 📰
► DeFi Pulse: https://defipulse.com/
► MakerDAO: https://makerdao.com/en/
► Synthetix: https://www.synthetix.io/
► Compound Finance: https://compound.finance/
► Liquidation Money: https://medium.com/dragonfly-research/liquidators-the-secret-whales-helping-defi-function-acf132fbea5e
📝 dYdX Overview 📝
dYdX is a non-custodial decentralised crypto exchange or Dex. You can lend, borrow and trade on margin. It’s an open source trading protocol that was built on the Ethereum protocol and is powered by smart contracts.
Given that it is non-custodial, it means that no one else but you are in control of your private keys. Trading is done by connecting your Ethereum wallets to the exchange.
It was started back in 2017 who raised over $10 million in seed funding from some well known VC funds. It went live in 2019 and there is currently just under 19 million dollars locked into the protocol.
📈️ Dex Margin Trading 📈
At dYdX the protocol is open source. Fully auditable smart contracts adjust leverage ratios, free up margin and if need be – liquidate positions.
You have isolated and then you have cross margin at dYdX.
Isolated margin is the mechanism that you are most likely quite familiar with. It is where you will “isolate” a particular amount of your funds as part of a trade with a specific leverage level.
However, cross margin is something different. This utilises all assets that you have in your account. It takes into account your combined position in your account when determining leverage and limits.
When it comes to trading pairs, you have ETH DAI, ETH USDC and DAI USDC.
🤝 Lending 🤝
When you are lending your crypto out on dYdX, it is being lent out to other users on the platform and you are earning an interest on that deposit. This interest is earned on a continuous basis.
This is also relatively risk-free lending because the dYdX protocol ensures that the borrowers are overcollateralized. There are no restrictions on the deposits.
💰 Borrowing 💰
Borrowing on dYdX can be done up to a minimum collateralization ratio of 125%. Anything below this level and you cannot borrow anymore crypto. And, once that ratio hits 115%, your trade will be liquidated.
Those who are liquidated will have to pay a liquidation fee of 5% . This is done in order to make sure borrowers keep their accounts well collateralised and firmly above the liquidation level.
👨💻️ Trading Fees 👨💻
Trading used to be free up until recently. However, given gas costs the team has instituted a maker taker fee schedule. This could help them cover some of these costs.
Those who are making markets and providing liquidity will get a lower rate than those who are taking it off the book. In the case of dYdX, makers will have 0 fees and takers will be charged a few percentage points.
🤖 Trading Bots 🤖
dYdX has built pretty simple client and trading API that will allow you to build trading bots. Much like you can build bots that interact with the large centralised exchanges, you can develop them here to trade on-chain at dYdX.
You can also develop a bot that can help with position liquidation. This means that you can make up to 5% helping to liquidate those positions that are undercollateralised.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.
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