To democratize powerful financial equipment for the masses in order that users anywhere, anytime might have the methods to make advanced trades without having to be limited by locale or position. According to tracker web site DeFi Pulse, the platform happens to be the 7th-largest task in DeFi. That’s not too bad, but where dYdX has been adding impressive numbers recently is in its talk about of the wider DEX marketplace.
dYdX Utilization
Thanks to a fresh updated statistics web page from Ethereum information dashboard Dune Analytics, we have now know that the dYdX process accounted for from 29 percent to 44 % of the complete market share of DEX action on Ethereum during the last week.
Moreover, when dYdX accounted for market share only 3 percent. From the December reduced to the recent 44 % high, then, is growth greater than 1,300 % – an incline that indicates dYdX, which launched restriction orders and a indigenous ETH-DAI market last drop, is starting to gain earlier traction.
Per Dune Analytics, or MAUs and WAUs respectively, have already been on the rise aswell. dYdX proceeded to go from 471 MAUs back January to at least one 1,345 MAUs this 7 days, for a rise of 185 percent. In exactly the same span, for a rise of 275 percent.
Dune Analytics can be in the process of incorporating dYdX’s stats to the site’s DEX tracker web page, so soon users can more readily track the way the platform compares in the a few months ahead to other well-known DeFi exchanges like Uniswap, Kyber System, 0x, and Oasis.
New Daily Quantity Record
Alongside accounting for a sizable part of all DEX activity this 7 days, dYdX also just notably encountered its best time of volume yet.
That’s because on March 9th the DeFi margin and derivatives system saw a lot more than $17.75 million USD traded through its smart contracts intraday, a fresh activity milestone for the task.
dYdX has once again broken its all-time higher for trading quantity with over $17.75M trades during the past time!! pic.twitter.com/a5CLlvy4is
The Coinbase Experiment
It isn’t surprising that dYdX has been ascending, at the very least considering a number of the high-profile support it’s had on the way.
For just one, like Andreessen Horowitz. For instance, last fall U.S. crypto exchange giant Coinbase announced the creation of a “USDC Bootstrap Fund” worth $2 million. Accordingly, Coinbase focused on providing 1 million USDC of liquidity straight into dYdX’s and Compound’s protocols, respectively. Because the San Francisco-based “unicorn” startup explained at that time:
“Through the investment of USDC, our goal as time passes would be to support DeFi teams to make their products safer, and much more reliant and accessible than existing financial loans. We view this as just one single first rung on the ladder for how Coinbase will support DeFi. In the coming months, we’ll share our learnings and future integrations with the city.”
DYdX Introduces Chainlink
Decentralized exchange dYdX has outmaneuvered the rest of DEX to date when it comes time to introduce premier derivatives products into DeFi. The protocol’s latest offering is LINK-USD, which is a perpetual contract that is based on Chainlink prices.
Perpetual contracts allow traders to place bets on asset price movements. They are similar to futures contracts with no expiry. These derivatives can be margin traded and remain active until the traders close their positions or liquidate their margin.
After releasing BTCUSD and ETHUSD products earlier in the year, the LINK-USD Perpetual contract is dYdX’s third such offering. These USDC-settled offerings are able to be traded with up to 10x leverage. It’s not surprising that LINK was the next on the non-custodial swap’s derivatives list.
According to the dYdX team, LINK is the most traded token of all DeFi on a daily volume basis.
Chainlink’s LINK price feed
Chainlink’s oracle-powered LINK USD Price Feed, dYdX, is a key factor in the perpetual contract’s rollout.
Chainlink’s underlying oracle ecosystem is proving to be just as exciting as the demand for LINK. We are pleased to announce that Chainlink’s LINK USD Price Feed is the oracle source for this particular market. We are confident that Chainlink’s data providers will prove to be extremely reliable even during high volatility.
Chainlink is proud to have this endorsement. Chainlink has made significant progress over the past two year. What is the crux? It’s much easier to plug into Chainlink’s existing oracle infrastructure for DeFi projects such as dYdX. The LINK-USD Price Feed is much more cost-effective than trying to create solutions in-house.
Leading The L2 Charge
If you are interested in the future of Ethereum, take a look at what dYdX is doing right now with regard to scaling.
In fact, Ethereum gas prices – the cost of processing Ethereum transactions – have been extremely high in recent weeks due to increased demand for the smart contract platform. It’s been a problem for traders to say the least.
This is where layer-two scaling solutions can be of great help. They make transactions very affordable and super fast. These L2 solutions are here to save the day.
dYdX, for example, announced earlier this month that it was collaborating with StarkWare, an Ethereum scaling firm, to integrate the DEX and StarkEx, an L2 scaleability engine powered with zk-Rollups technology. The dYdX traders will see a significant reduction in gas fees and trade time thanks to the meld. The integration is almost complete.
“Our Perpetual contracts will be powered by StarkEx before the end of the year,” dYdX stated at the time.
Decentralized Derivates Products
Decentralized derivatives products such as the new LINKUSD perp will become more attractive once the trading environment around them is much less friction-free. After dYdX instituted a minimum trade size in March due to severe Ethereum congestion, the exchange moved to L2.
StarkEx embrace will allow the exchange move in the opposite direction. This means that users won’t need to worry about trade size again.
Last week, the project’s team stated that there would be lower fees per trade, which will allow traders to test dYdX with less capital. This is good news for all stakeholders of the exchange and for other DEXes within the space. dYdX is setting the stage for other popular protocols to follow its lead towards L2 solutions.