Decentralized Trading Platform, dYdX, Launches Ethereum-Settled Perpetual Contracts

dYdX, a decentralized exchange (DEX), announced the launch of Ethereum perpetual swaps on its platform with trading going live August 4, 2020. The ETH-USD Inverse Perpetual Contract Market will allow the users to margin trade up to 10x leverage on their EH collateral and bet on the future price of ETH.

Speaking on the launch of the perpetual contracts, the founder of dYdX, Antonio Juliano said,

“The main reason people like trading these contracts is because people can trade them with pretty high leverage.”

However, the risk of trading high leverage is evident in the crypto market with the volatile swings causing massive liquidations on these contracts. These markets are dominated by institutions and professional retail traders hence trade with caution.

The ETH-USD swaps will be quoted in USD and settled in the base currency similar to the first launched perpetual swap settled in Bitcoin (BTC).The minimum order size is set at $200 with orders less than $1500 only available as market or fill-or-kill orders.

According to Juliano, the dYdX swaps will offer a simpler way to get leverage on trades than most of the DEXes in the market with its liquidity better than an average DEX. However, the derivatives market is lagging behind the spot market in crypto, a factor that Juliano believes is caused by the large presence of retail traders in the space. He said,

“The crypto market is very dominated in terms of volume by retail traders, particularly international crypto traders.”

The decentralized finance, DeFi, app has gradually grown its products since starting as a margin trading platform on Ethereum, to offering several synthetic assets such as derivatives. This has seen the platform grow its total locked value of assets from $13 million at the start of the year and currently places 14th on the DeFi Pulse market ranking with $38 million locked in assets’ value locked on the platform.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,489FansLike
2,795FollowersFollow
4,272FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

YFI Plunge Might be Over After Record Number of Addresses Unload All their Tokens

In the past three days, the DeFi darling YFI has lost more than 36% of its value, going from $34,400 to $21,950 today. At the...

Financial Firms & Law Enforcement Find Cryptocurrencies More Risky Than Opportunistic: RUSI Survey

Financial firms, government, and the private sector all see cryptocurrencies as risky, found a survey by the Royal United Services Institute think-tank and the...

Kadena to Launch DEX to Rival Uniswap; Touts Higher Speeds and Multiple Protocol Support

Kadena announced on Tuesday that it would roll out a Decentralized Exchange (DEX) dubbed ‘Kadenaswap’ towards the end of 2020 in a bid to...

Crypto Exchange Bitpanda Raises $52 Million in Series A Round to Offer Access to Stock Markets

Cryptocurrency exchange Bitpanda has raised $52 million in its first major funding round, Series A led by PayPal co-founder Peter Thiel’s Valar Ventures. Other...

Coinbase Launches Staking Program For Cosmos, ATOM Holders Can Earn 5%

In a blog post released on Wednesday, Coinbase introduced staking on ATOM, promising up to 5% return per annum on the value staked. The...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today