What is dYdX?
dYdX is an on-chain derivatives exchange built on crypto rails. dYdX v3, the currently running iteration of the protocol, is deployed as a StarkEx zk-rollup (built by Starkware). dYdX v4, the iteration in development, is a standalone appchain built using the Cosmos SDK.
dYdX offers margin trading of cryptoassets with up to 20x leverage. The exchange offers a variety of order types, including: limit orders, stop limits, stop market orders, trailing stops, take profit limits, and take profit market orders. The protocol has introduced a Safety Pool that acts as an insurance fund aimed at ensuring protocol solvency. Stakers receive additional DYDX emissions for contributing to the Safety Pool.
The DYDX token is a governance token that confers governance rights to its stakers. DYDX tokens are distributed as rewards to entities that trade on the exchange and these rewards are based on the total fees paid as well as the open interest. DYDX will be the native asset of the dYdX-chain.
