dYdX

dYdX is a decentralized derivatives exchange where users can trade crypto assets with leverage through perpetual futures contracts. Earlier versions of the exchange ran on Ethereum and the scaling infrastructure built on it; in its current version it moved to dYdX Chain, its own blockchain built with the Cosmos SDK. DYDX is the native token of this chain; the older version on Ethereum can be converted to the native token via a bridge.

On dYdX Chain, the order book and matching run in an off-chain structure that validators keep in memory, while the results of matched trades are written to the blockchain. This design aims to offer a trading experience close to that of centralized exchanges while preserving a structure that does not take custody of user assets. DYDX is used for network security by being staked to validators, and a portion of the income from trading fees is distributed to stakers. Token holders also vote on proposals concerning matters such as market parameters, new asset listings and use of the treasury.

Trading volume and open interest on the exchange, how fee income is distributed, competition among decentralized derivatives platforms and regulatory approaches to derivative products may affect the DYDX price. The dYdX page on Lzzo.com presents the price formed in the DYDX/USDT pair on Binance converted into dollars at the Coinbase Exchange USDT/USD rate; the chart is also based on this converted series.