Overview
dYdX is a powerful decentralized exchange (DEX) built on the Ethereum blockchain, offering advanced margin trading, perpetual contracts, and more — all with non-custodial security. Unlike centralized exchanges, dYdX enables users to remain in full control of their funds, interacting directly through their wallets such as MetaMask or WalletConnect.
The platform combines high liquidity, fast settlement, competitive trading fees, and innovative features like cross-margin and isolated margin modes — making it a top-tier choice for both retail and professional traders.
Key Features
1. Perpetual Contracts
Trade perpetual contracts on major crypto assets (e.g., BTC, ETH, LINK) with up to 25× leverage. PnL is realized and settled instantly on-chain.
2. Margin Trading
Borrow funds to amplify your positions. Choose between cross-margin (shared collateral across positions) or isolated margin (collateral limited to a specific position).
3. Non-Custodial Wallets
Connect wallets directly and trade without depositing funds into a centralized exchange. You always maintain custody of your assets.
4. Smart Order Types
Use advanced order types including limit, stop-loss, take-profit, and trailing stops — tools typically found on centralized platforms.
5. Governance & dYdX Token (DYDX)
Participate in protocol governance and fee discounts via the native DYDX token. Holders can propose, vote, and shape future features and incentives.
How It Works
- Connect Wallet: Link your Web3 wallet like MetaMask or WalletConnect.
- Select Market & Leverage: Pick your asset and desired leverage (e.g. 5×, 10×, up to 25×).
- Adjust Margin: Choose cross or isolated margin, and fund your position.
- Place Order: Enter order details: type, amount, price, and risk parameters.
- Manage Position: Monitor liquidation price, PnL, and add/remove margin as needed.
- Close Position: Close manually or use take-profit / stop-loss. Settlement finalizes on-chain.
Risks & Best Practices
While decentralized and transparent, trading with leverage carries inherent risks. Liquidation may occur if collateral drops below required levels. Here are some guidelines:
- Start with ≤5× leverage unless experienced.
- Use stop-loss and take-profit orders always.
- Track margin ratios and maintenance margin closely.
- Understand smart contract risk and stay updated on protocol audits.
- Diversify — never risk more than you can afford to lose.
FAQ
What is the native token DYDX used for?
DYDX is the governance token of the dYdX protocol. Holders can vote on protocol changes, receive fee discounts, staking rewards, and earn incentives by participating in staking or trading.
How much leverage can I use?
dYdX offers up to 25× leverage on perpetual contracts. For margin trading, leverage options vary depending on asset and collateral. Cross-margin may support lower leverage than isolated margin.
Is dYdX safe to use?
dYdX is non‑custodial and audited regularly, but risks remain including smart contract vulnerabilities, liquidation risk, and blockchain congestion. Always enable two‑factor security on your wallet, and trade responsibly.
What wallets are compatible?
You can connect MetaMask, WalletConnect‑enabled wallets, and other Ethereum‑based Web3 wallets. No need to deposit funds on a centralized exchange — funds remain in your control.
How are fees calculated?
Fees include maker/taker fees, funding rates for perpetuals, and gas costs for on‑chain settlement. Fee schedules are published on the dYdX documentation portal. DYDX holders often receive tiered discounts based on holdings.
Can I trade using mobile?
Yes — use dYdX through wallet‑connected mobile browsers or compatible wallet apps supporting Web3. A dedicated mobile app may be available depending on your region and platform.