dYdX is a protocol for decentralized margin trading and lending of ERC-20 tokens. It uses off-chain order books with on-chain settlement and enables traders to short-sell tokens, increase exposure by adding leverage or earn interest on deposited tokens. dYdX was started with the goal of providing trustless access to more complex financial instruments than currently offered by existing decentralized exchanges. The first product built on dYdX was known as Expo and launched in October 2018, supporting leveraged long or short Ethereum positions. After running for nine months, Expo was replaced by Solo, a revamped dYdX that offers new functionality and interface improvements. The team plans to expand the offerings to include more assets and derivative products, and has considered transitioning to a DAO.
dYdX is now one of the leading DeFi protocols in the entire ecosystem. Thanks to the use of the layer 2 scalability solution StarkEx, the solution provides one of the best user experience, as close as possible to centralized exchanges, with great UX/UI. There is not much activity on the public repositories of the project, but after a bit of exploration and analysis of the team’s GitHub accounts, a lot of activity was found on private repositories. With that in mind and following their recent impressive fund raise, the future seems bright for dYdX. There is currently no token linked to the project.