dYdX

dYdX is a decentralized exchange (governed by its native token DYDX) that offers perpetual, margin, and spot trading in a number of cryptocurrency markets via Ethereum smart contracts. The platform also offers borrowing and lending pools on the Ethereum blockchain. In August 2021, dYdX reportedly became the first perpetual decentralized exchange protocol to implement a layer-2 solution to allow traders to deposit funds and trade instantly without paying gas fees for every transaction. This was achieved through a strategic partnership with StarkWare, a blockchain scalability solutions provider. As of December 2021, the exchange was used by over 15,000 traders and had over USD 989 million in open interest. 

In May 2022, dYdX launched a mobile app of its platform on the Apple app store (which had over 200,000 people already signed up for the beta version of the platform ahead of the full launch). In June 2022, dYdX announced that it would be moving away from Ethereum to its own blockchain on the Cosmos Network. The migration, dubbed “V4” aims at fully decentralizing the protocol. dYdX leveraged the Cosmos software development kit (SDK) to decide the parameters of its own chain and create new tools such as an in-memory off-chain order book as well as a matching engine. 

In November 2023, dYdX open-sourced its code to mark the initiation of its v4 upgrade. The proposed upgrade was to transition the exchange from a layer 2 network built on the Ethereum blockchain to a standalone blockchain in the Cosmos ecosystem. Moreover, the platform also planned to make the exchange fully decentralized and community-operated.

Funding and financials 

In June 2021, the exchange raised USD 65 million in a Series C led by Paradigm. It also received direct support from Kronos Research, MGNR, Menai Financial Group, QCP Capital, CMS Holdings, CMT Digital, Sixtant, and Finlink Capital as liquidity providers.