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Investors Flock to the DEX dYdx with its Token with Rising by 50% after the Clampdown from China

Since last Friday, the People’s Bank of China began to crack down on cryptocurrency trading, a large number of Chinese traders seem to have turned their trading venues to dYdX – a decentralized leveraged trading exchange.

The trading activity of the centralized derivatives exchange dYdX has surged. According to cryptocurrency data provider CoinGecko, the trading volume of DYDX reached $1,217,300,925 within 24 hours, surpassing Coinbase’s spot market for the first time.

The token of Defi exchange dYdX also hit a record high of 21.80 today, rising by nearly 50% in 24 hours.

According to Coinmarketcap data, DYDX’s 24-hour trading volume increased by 196.28%. At the time of writing, dydx is trading at $21.43.

In yesterday’s Twitter, WuBlockchain Chinese cryptocurrency reporter Colin Wu pointed out that the demand of Chinese users for decentralized exchanges and other DeFi products has surged recently. He explained:

“A large number of Chinese users will flood into the DeFi world, and the number of users of MetaMask and dYdX will greatly increase. All Chinese communities are discussing how to learn defi.”

As Chinese investors are worried about the stricter regulatory measures of the Chinese government, such as an announcement issued by the Central Bank of China last Friday mentioned that all cryptocurrency-related transactions are illegal.

Virtual currencies such as Bitcoin, Ether, Tether, and other virtual currencies do not enjoy the same legal status as legal tender, are not legally repayable, thus should not be traded as circulating currencies in the market, which has caused investors’ FUD anxiety.

Investors have moved from centralized exchanges such as Huobi to decentralized exchanges dYdX and FutureSwap for continuing cryptocurrency leveraged trading.

As reported by Blockchain.News today, Huobi Global, one of the world’s largest digital currency trading platforms, has announced it will gradually unwind its services in mainland China as the People’s Bank of China (PBoC) and other state regulators seek to intensify their clampdown on all activities bordering digital currencies in the country.

Huobi officials stated that it has stopped using mobile phone numbers from mainland China in new account registrations and will phase out existing accounts in mainland China before the end of the year “to comply with local laws and regulations.”

Huobi token has fallen by 42.61% in 7 days and is valued at around $7.63, according to the current price.

Image source: dYdx.com

dYdX Taps ConsenSys' Charles d'Haussy as CEO of its Foundation

dydx, one of the most prominent and powerful Decentralized Exchanges (DEX) in the crypto ecosystem, has announced the appointment of Charles d’Haussy, a crypto leader from ConsenSys, to serve as the Chief Executive of its Foundation.

As the new boss of its not-for-profit foundation, Charles will bring his wealth of experience to help dydx chart an ambitious path forward. With the dydx Foundation tasked with supporting the dYdX protocol, Charles’s track records with ConsenSys and as a FinTech head with the Hong Kong government will help him in delivering just the right growth strides for the protocol.

Since its inception in 2017, dYdX now ranks as the biggest DEX in today’s DeFi world. At the time of writing, the protocol has over $342 million in daily trading volume and ranks well above Kine Protocol and Uniswap V3, according to data from CoinMarketCap.

As part of its growth push, dYdX has unveiled plans to launch its V4 engine, which is slated for the second quarter of 2023. With Charles now at the helm of affairs, the perfect delivery of its new trading engine will be amongst the top things on his agenda as he assumes office.

“I am very excited to welcome Charles into his role as CEO of dYdX Foundation. His wealth of cross-industry experiences engaging with different stakeholders will be an extremely valuable addition to the Foundation and lead us to the next stage of growth, “Arthur Cheong, President of dYdX Foundation Council.

Amongst his core roles will be pushing for new partnerships for the protocol, drawing on his experiences in international business relations.

The mega shift in leadership for the decentralized exchange protocol mimics related moves from top platforms and startups in the Web3.0 ecosystem. One of the outfits most aggressive with its hiring spree is Animoca Brands, whose recent appointments featured Jared Shaw as its Chief Financial Officer back in September.

dYdX to Exit Canadian Market Amid Regulatory Restrictions

Cryptocurrency derivatives exchange dYdX has announced that it will be exiting the Canadian market over the next seven days. In an April 7 blog post, the company stated that it will be “winding down services” in Canada, beginning with the halting of new user onboarding in the country. On April 14, the exchange will move all existing Canadian users to “close-only mode,” allowing them to only withdraw funds.

According to dYdX, the decision was made due to increased regulatory restrictions in Canada. The Canadian Securities Administrators recently announced additional restrictions for crypto exchanges’ registration requirements in the country. The new rules require platforms to prohibit Canadian clients from entering into crypto contracts to buy and sell any crypto asset that is a security and/or a derivative.

dYdX stated in its blog post that it is committed to transparency and democratizing access to financial opportunity. The exchange expressed hope that the regulatory climate in Canada will eventually change, allowing it to resume its services in the country.

This move by dYdX follows criticisms the exchange received in September 2022 when it offered a $25 deposit bonus for confirming someone’s identity using a live webcam image. Many dYdX users and individuals in the crypto space raised privacy concerns, and the exchange ended the program due to “overwhelming demand.”

dYdX is a decentralized exchange that specializes in cryptocurrency derivatives trading. It is among the many cryptocurrency exchanges that have faced increased regulatory scrutiny in recent years, particularly regarding investor protection and anti-money laundering measures.

Although dYdX’s exit from the Canadian market may be a setback for the company, it is reflective of the challenges that many cryptocurrency exchanges face in navigating regulatory environments around the world. As the crypto space continues to evolve and mature, it is likely that regulatory authorities will continue to monitor and regulate the industry to ensure investor protection and mitigate risks associated with the emerging asset class.

dYdX to Exit Canadian Market

Cryptocurrency derivatives exchange dYdX has announced that it will be exiting the Canadian market due to regulatory restrictions. In an April 7 blog post, the exchange revealed that it would be winding down services in Canada over the next seven days. The move will begin with halting the onboarding of new users located in the country.

On April 14, dYdX will shift all existing Canadian users to “close-only mode,” which will allow them to withdraw funds but not engage in any new transactions. The exchange hopes for a change in the regulatory climate that will allow it to resume services in Canada.

In the blog post, dYdX stated its commitment to providing transparency around product decisions and democratizing access to financial opportunity. The exchange expressed hope that the regulatory climate in Canada would eventually change, enabling it to resume services in the country.

This move by dYdX follows the Canadian Securities Administrators announcing additional restrictions for crypto exchanges’ registration requirements in the country. According to the rules, platforms were prohibited from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative.

The regulatory restrictions in Canada have become a growing concern for cryptocurrency exchanges, with many having to shut down or exit the market altogether. It remains to be seen how the regulatory landscape will evolve in the future.

Notably, dYdX faced criticism from users and those in the crypto space in September 2022. The exchange had offered a $25 deposit bonus for confirming someone’s identity using a live webcam image. The promotion was later ended, citing “overwhelming demand” rather than privacy concerns put forth.

dYdX is a popular cryptocurrency derivatives exchange that allows users to trade various cryptocurrency assets on margin. The exchange has gained popularity in recent years due to its user-friendly platform and high liquidity.

In conclusion, dYdX’s decision to exit the Canadian market highlights the increasing challenges faced by cryptocurrency exchanges in the country. The regulatory restrictions have made it difficult for exchanges to operate, and it remains to be seen how the situation will evolve in the future. Nevertheless, dYdX’s commitment to transparency and democratizing access to financial opportunity remains unwavering.

dYdX Founder: Focus on Overseas Markets Over US for Crypto

On August 26th, dYdX founder Antonio Juliano shared his views on Twitter about the US crypto landscape. He advised crypto developers to prioritize overseas markets due to the existing regulatory hurdles in the US. “Crypto builders should just give up serving US customers for now and try to re-enter in 5-10 years,” Juliano tweeted, emphasizing that the majority of the market is overseas. “Innovate there, find PMF, then come back with more leverage.”

Juliano further clarified his stance, stating that in the broader picture, very few people currently use or are concerned about crypto. His primary focus is on the long-term growth of the crypto sector, aiming for a 100x increase. He believes that the key to this growth is finding a stronger product-market fit, which doesn’t necessarily require perfect distribution. “There is a plenty big overseas market to experiment in,” he added.

However, Juliano did not dismiss the importance of US crypto policy. He acknowledged its significance, especially since many countries often follow the US’s lead. He emphasized the need for crypto products with massive usage, which would influence policy decisions. “We need to have products with massive usage where users (voters) say ‘wait, I need this’,” he pointed out.

The dYdX founder also highlighted the importance of builders being able to remain in the US, given the concentration of tech talent in the country. He expressed his frustration over the fact that many Americans, including those in his New York office, cannot use products that address long-standing crypto challenges. “Crypto is aligned with American values… America will realize that eventually,” Juliano concluded.

In response to Juliano’s tweets, Brian Armstrong, CEO of Coinbase, offered a more optimistic outlook. He believes that the situation in the US will improve sooner than Juliano anticipates, possibly by next year. “The U.S. always gets it right, after exhausting every other option,” Armstrong tweeted, expressing confidence in the country’s ability to adapt and support crypto progress.

Both leaders, while having different timelines in mind, seem committed to navigating the challenges and ensuring the growth and adoption of crypto in the US and beyond.

dYdX Founder Addresses Community Concerns Regarding Token Inflation

Antonio, the founder of decentralized exchange dYdX, clarified the platform’s stance on token inflation in a series of tweets today. He stated,

There are no plans for additional token inflation to compensate validators on the dYdX Chain.

He further emphasized that the current token distribution model, which has seen inflation reduced by over 60%, will continue to be implemented.

Antonio’s comments come amidst growing discussions about the sustainability of dYdX’s token model. He mentioned, “dYdX may soon be the closest L1 besides Ethereum with a sustainable utility token model.” However, he also noted that his views were personal and highlighted the role of community governance in controlling the token.

The tweets sparked a debate among crypto enthusiasts. A user named KryptoKami criticized the token’s distribution, pointing out that two years post-token generation event (TGE), only 17% of the total supply is in circulation. KryptoKami argued that the token had “one of the worst tokenomics of all vc backed tokens,” emphasizing the slow liquidity exit for early backers.

Another user, Acee, viewed the token as a reward for traders, suggesting its utility in reducing fees. However, Acee also expressed concerns about the lack of a fee-sharing mechanism in the upcoming version of the platform, v4.

The discussions underscore the complexities and challenges faced by decentralized platforms in balancing tokenomics, utility, and community expectations. As dYdX continues to evolve, its approach to token distribution and utility will be closely watched by both its users and the broader crypto community.

dYdX Semi-annual Report

In dYdX recent semi-annual report, dYdX Foundation revealed a trading volume of $1.5 trillion over the past six months, with its user base growing by 2 million to reach 12 million. The decentralized exchange platform highlighted that 80% of its trades are now processed on Layer 2, largely due to its integration with StarkNet, enhancing transaction speeds and reducing costs. The active dYdX community introduced 20 new governance proposals, and the platform distributed $500 million in staking rewards. Additionally, 10 new projects have been incorporated into the dYdX ecosystem. The report underscores dYdX’s commitment to growth, innovation, and addressing challenges in the DeFi sector.

About dYdX

dYdX, a decentralized crypto exchange, is driven by its governance token, DYDX, which guides its layer 2 protocol. Utilizing Starkwire’s StarkEx engine, dYdX enhances transaction efficiency and reduces costs. Founded in 2017 by former Coinbase engineer Antonio Juliano and Zhuoxun Yin, it began operations in 2019 after securing over $10 million in funding. The platform, known for derivatives and margin trading, offers advanced trading options, perpetual contracts, and an interest-accruing system for deposits.

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dYdX Founder Foresees 100x Growth in DeFi Derivatives

In a recent tweet, Antonio Juliano, the founder of dYdX, shared his vision for the future of decentralized finance (DeFi) derivatives. Antonio stated,

dYdX will lead the growth of DeFi derivatives towards the next 100x. We don’t plan to branch out to other products.

Currently, DeFi accounts for approximately 2% of the volume in crypto derivatives. However, Antonio believes this figure is set to surge. He mentioned, “I believe that [DeFi] will grow 10x+ in the next few years (as will crypto itself).” This optimistic projection underscores the potential that industry insiders see in the DeFi derivatives market.

While the tweet provides a glimpse into dYdX’s strategic focus, it also highlights the broader sentiment about the growth trajectory of the DeFi sector. With the crypto market itself poised for expansion, the emphasis on DeFi derivatives suggests a promising avenue for investors and traders in the coming years.

About dYdX

DEX dYdX was founded by Antonio Juliano, and is well-known in the DeFi (Decentralized Finance) community for its cutting-edge offerings and user-friendly design.

Users can trade, borrow, and lend cryptocurrencies on the decentralized exchange (DEX) dYdX. dYdX doesn’t rely on middlemen to facilitate trades because it runs on smart contracts on the Ethereum blockchain, unlike conventional exchanges. Users have more control over their funds thanks to this decentralized nature, which also lowers the risks related to centralized exchanges.

The availability of derivative products is one of dYdX’s distinctive features. On the platform, users can trade perpetual contracts and margin, which are financial products whose value is derived from an underlying asset like a cryptocurrency. Because of this, traders who don’t actually own the underlying asset may still benefit from price changes.

Decentralized Exchange dYdX Proposes $20M Incentive Program for v4 Launch

dYdX is moving forward with a proposal for a $20M Launch Incentives Program by Chaos Labs to facilitate a smooth migration to its version 4 (v4) platform. The fund, sourced from the dYdX Chain Community Treasury upon its deployment on the mainnet, is earmarked for a six-month duration to motivate the seamless transfer of users and trading volumes to the dYdX Chain. This proposition aims to gather community endorsement and is subject to a governance proposal on the dYdX Chain.

The dYdX Grants team hired Chaos Labs as a service provider for a number of tasks, such as creating portals for market maker risk, LP reward reporting and analysis, and new asset listing. In order to provide permissionless market listings on dYdX v4, they also participated in research with an emphasis on risk reduction, improving user experience, and liquidity provisioning incentivization.

The primary challenge as dYdX nears the v4 launch is migrating and expanding its existing user base. The necessity to secure liquidity and incentivize user migration to the new dYdX Chain is considered pivotal for the success of dYdX v4. Historical data underscores the effectiveness of Liquidity Mining or token reward programs in boosting protocol growth and trading volumes across the DeFi space. The Launch Incentives Program aims to replicate this success by encouraging a swift transition to v4.

The program is structured in two main phases, pre-launch and post-launch, detailed as follows:

Pre-Launch

Trading Reward Genesis Research: A preliminary phase focused on crafting reward distribution methodologies to promote desired user behaviors within the dYdX Chain ecosystem, including deposits, trading, staking, and governance participation.

v4 Analytics and Risk Portal: Designed to offer transparency and enable verification of reward recipients’ activity by the dYdX community. This portal will serve as a data hub, providing insights into user and market-specific activity.

v4 Reward Leaderboard Portal: This will display user engagements and accumulated rewards transparently, fostering healthy competition and community engagement.

Post-Launch

Trading Seasons: The incentive program will be divided into several trading seasons. The initial season is shorter to allow fine-tuning of the reward strategy and improve wash trading detection. Subsequent seasons will be determined randomly to introduce unpredictability, thereby reducing potential manipulation.

Trading Season Analysis: Post each trading season, analysis reports will be generated to highlight market dynamics, user behavior patterns, and overall protocol efficacy. These insights are crucial for shaping future reward allocation decisions.

The distribution of DYDX rewards will be governed by dYdX Chain community proposals at the end of each trading season. Chaos Labs will abstain from voting in any dYdX governance votes concerning reward distributions under the Launch Incentives Program to maintain an unbiased and transparent decision-making process.

This proposal, slated between September 28, 2023, and October 2, 2023, is a community temperature check before the final governance proposals, which will be created on the dYdX Chain post each trading season. With a near-unanimous community backing of 99.08% votes in favor, and a total of 15M DYDX votes supporting the proposal, it reflects a strong community endorsement for the Launch Incentives Program.

dYdX Chain Audit Reveals Zero Critical Issues, Confirms Informal Systems

Decentralized exchange platform dYdX has successfully undergone a full security audit of its Chain code, conducted by Informal Systems. The news was announced on dYdX’s official Twitter account and later reposted by the company’s founder, Antonio. The audit aimed to ensure the safety and security of the dYdX Chain software, a top priority for the company. According to the official blog post, all issues identified have been addressed by the dYdX team.

Informal Systems, an entity well-versed in the Cosmos Ecosystem, carried out the audit in three distinct phases. The first phase scrutinized custom modules such as x/assets, x/perpetuals, x/epochs, x/sending, x/prices, and x/subaccounts, in addition to liquidation and price-feed daemons. The second phase focused on the x/clob module and additional custom changes to forked versions of CometBFT and Cosmos SDK. The third and final phase examined modules like x/bridge, x/delaymsg, x/rewards, and x/vest, along with the Bridge Daemon.

The audit process identified one critical issue, which has since been resolved. Additionally, four medium issues, 17 low issues, and 19 informational issues were noted. Of these, 34 were accepted and subsequently addressed, while five were considered to be functioning as designed.

dYdX is also running a bug bounty program for the Chain software, offering payouts of up to $5 million depending on the severity and eligibility of the discovered issues. However, issues already known by the dYdX team or those highlighted in the audit are not eligible for the bug bounty.

DWF Ventures Explores Innovations in Perpetual DEXs Landscape

On October 11, 2023, DWF Ventures disclosed its primary investment focus on derivative protocols, particularly perpetuals, through a comprehensive Hindsight article. The piece aims to dissect the landscape of decentralized exchanges (DEXs) concerning perpetuals, shedding light on prevalent innovations in this domain.

The journey of perpetuals commenced with Bitmex introducing them in 2016. Since then, the growth trajectory has been striking, with perpetuals now embodying a whopping 97% of the crypto market trading volume. The burgeoning interest in perpetual DEXs underscores the discernible disparity between centralized exchanges (CEX) and DEXs, and the boundless growth potential inherent in perpetual DEXs.

A stark contrast exists between CEX and DEX, especially in terms of central limit order books (CLOB) and trading processes. The blockchain constraints have posed a substantial challenge in mirroring or outstripping the user-centric experience provided by CEX on DEX platforms.

Efforts are being channeled to create a decentralized “CEX experience.” Protocols like dYdX are at the forefront of replicating the Limit Order Book (LOB) model, while HyperliquidX is pushing the envelope in the decentralization spectrum.

In the vein of embracing DeFi innovation, perpprotocol emerged as a trailblazer by introducing the vAMM model. This model serves as a viable alternative for traders yearning for decentralization coupled with instant on-chain liquidity.

DriftProtocol has ventured into a hybrid approach to tackle the inherent limitations of on-chain LOB and vAMMs. This novel methodology involves routing orders through three distinct sources to achieve effective on-chain matching, bridging the gap between traditional order books and automated market makers.

A notable divergence is witnessed in the rise of Liquidity Pool (LP) models in perpetual DEXs. Spearheaded by GMX, the peer-to-pool model departs from the conventional vAMM model, providing a fresh perspective on liquidity management.

Kwenta.io is playing a pivotal role in revolutionizing the LP model by leveraging the Synthetix Debt Pool. This innovative tactic minimizes slippage by pooling and transferring liquidity across various markets, fostering a conducive environment for trading synthetic assets and perpetual futures.

The perpetual DEX landscape is ripe for continued innovation. The unique structural differences between DEXs and CEXs have spurred a wave of DeFi innovations, manifesting in models like vAMMs and liquidity pools. DWF Ventures expressed an anticipatory stance towards how each protocol would navigate the challenges and further mold the future of perpetual DEXs.

DWF Ventures’ discourse underscores the blend of decentralization and innovation as a driving force for perpetual DEX advancements. The continuous exploration and adaptation of new models signify a promising horizon for the perpetual DEX landscape, with each protocol contributing to a more robust and user-centric decentralized trading ecosystem.