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Technical Analysis: dYdX (DYDX) Price Prediction

As we approach the launch of v4 Mainnet, we want to provide a peek into what the dYdX team is building. This post presents a high-level overview of the architecture of v4. Read more below 👇

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As we approach the launch of v4 Mainnet, we want to provide a peek into what the dYdX team is building. This post presents a high-level overview of the architecture of v4. Read more below 👇

https://dydx.exchange/blog/v4-technical-architecture-overview

To find out even more about this project, check out our deep dive of [dYdX](https://coinmarketcap.com/alexandria/article/what-is-dydx-dydx-features-tokenomics-and-price-prediction).

## What Is DYDX (dYdX)?

[DYDX (dYdX)](https://coinmarketcap.com/currencies/dydx/) is the governance token for the [layer 2](https://coinmarketcap.com/alexandria/glossary/layer-2) protocol of the eponymous non-custodial decentralized cryptocurrency exchange. It serves to facilitate the operation of layer 2 and allows traders, liquidity providers and partners to contribute to the definition of the protocol's future as a community. 

Token holders are granted the right to propose changes on the dYdX’s layer 2, and are presented with an opportunity to profit through token staking and trading fee discounts.

Built on [Starkwire’s](https://starkware.co/) StarkEx scalability engine, layer 2 is used for trading of cross-margined perpetuals on the platform. The scaling solution allows dYdX to increase transaction speed, eliminate gas costs, reduce trading fees and lower​​ minimum trade sizes on the protocol.

An open-source platform with smart contract functionality, dYdX is designed for users to lend, borrow and trade crypto assets. Although dYdX supports spot trading, the main focus of the platform is on derivatives and margin trading.

The exchange was founded in 2017 with over $10 million in seed venture capitalist funding and went live in 2019. DXDY token [Initial coin offering (ICO)](https://coinmarketcap.com/alexandria/glossary/initial-coin-offering-ico) was on September 9th 2021.


## Who Are the Founders of dYdX?

Antonio Juliano — an experienced programmer with a background in blockchain technology is the founder and CEO of DYDX. He first entered the crypto space in 2015 upon getting a job as a software engineer at [Coinbase](https://coinmarketcap.com/ru/exchanges/coinbase-exchange/) — a cryptocurrency exchange platform. As a Princeton University graduate with a degree in computer science, Antonio Juliano embarked on his entrepreneurial journey and founded dYdX in early 2017 . 

Zhuoxun Yin is head of operations at dYdX. Не previously worked at _Nimble_ — a social sales and marketing CRM and _Bain & Company_ — a consulting service. Zhuoxun Yin studied at University of Queensland and has a bachelor's degree in commerce.


## What Makes dYdX Unique?

dYdX is a cryptocurrency exchange that combines advanced financial tools with decentralization. The platform supports [margin trading](https://coinmarketcap.com/alexandria/glossary/margin-trading) — a financial product enabling investors to increase their exposure to digital assets through [leverage](https://coinmarketcap.com/alexandria/glossary/leverage). dYdX’s isolated margin allows users to assign particular funds in the account as part of a trade, while cross-margin utilizes all the assets a trader keeps on the platform. Perpetuals — a type of [futures](https://coinmarketcap.com/alexandria/glossary/futures) contract that does not have a predetermined selling date, is also available for trading on dYdX. The exchange currently offers a maximum of 25x leverage on synthetic assets with no expiry date. 

Upon depositing funds into the account, dYdX users automatically begin to earn interest, as their assets are entered into the global lending pool specific to each cryptocurrency. The platform guarantees security for lenders by ensuring that borrowers have enough [collateral](https://coinmarketcap.com/alexandria/glossary/collateral) in their account at all times. Borrowing on dYdX enables users to instantly acquire any asset available on the platform using funds in their possession as collateral for the loan. dYdX also features an order book architecture in contrast to automated market makers such as [Uniswap](https://coinmarketcap.com/exchanges/uniswap-v2/). 

dYdX Layer 2 increases scalability of the network through use of a form of [zero-knowledge rollup](https://coinmarketcap.com/alexandria/glossary/zero-knowledge-rollup) — zkSTARKS. The technology receives proofs, while validating a batch of transactions off-chain. These proofs are then sent back to the blockchain, where they are verified by a smart contract. zkSTARKS makes it possible to remove expensive computations from the mainnet with no sacrifices in decentralization.

Together, with trading and liquidity provider rewards, dYdX introduces retroactive mining benefits, allowing the platform to show appreciation to historical users and incentivize them to trade on layer 2 protocol. The holders can stake their tokens in dYdX’s safety and liquidity pools. While the safety pool provides the platform with a safety net in case of a shortfall event, the liquidity pool serves to attract high quality market makers. 


### Related Pages:

Learn about [XCM](https://coinmarketcap.com/currencies/coinmetro-token/) — the native token of [CoinMetro](https://coinmarketcap.com/ru/exchanges/coinmetro/) exchange.

Check out [Huobi Token (HT)](https://coinmarketcap.com/ru/currencies/huobi-token/) — the native token of cryptocurrency exchange [Huobi Global](https://coinmarketcap.com/ru/exchanges/huobi-global/).

Look into [Tidex Token (TDX)](https://coinmarketcap.com/ru/currencies/tidex-token/) — the native of cryptocurrency exchange [​​Tidex](https://coinmarketcap.com/ru/exchanges/tidex/).


## How Many DYDX Coins Are There in Circulation?

There is a total of 1,000,000,000 DYDX minted, which will be distributed over a five year period, starting on August 3rd 2021. 
- 50.00% of the supply will go to the community; 
- 25.00% will be used as trading rewards; 
- 7.50% will be set aside for retroactive mining rewards, 
- 7.50% will be assigned for liquidity provider rewards; 
- 5.00% will go to a community treasury; 
- 2.50% will be dedicated to users staking USDC to a liquidity staking pool and 
- 2.50% to users staking DYDX to a safety staking pool.

27.73% will be set aside for past investors. 15.27% will go to founders, employees, advisors, and consultants. 7.00% will be kept for future employees and consultants of dYdX.

Since the launch of $DYDX, there have been several governance proposals that have resulted in changes to the initial allocation. Currently, the allocation includes 50.0% (500,000,000 $DYDX) to the community as follows:

**20.2% (201,883,560 $DYDX) based on the Trading Rewards Formula**, 
- In DIP 16, the dYdX community voted in support of reducing trading rewards by 25%. As a result, trading rewards distributed in a given epoch were reduced from 3,835,616 $DYDX to 2,876,712 DYDX in Epoch 15. The remaining 958,904 $DYDX will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

**5.0% (50,309,197 $DYDX) to past users who complete certain trading milestones on the dYdX Layer 2 Protocol (Retroactive Mining Rewards),**
- After Epoch 0, 24,690,803 unclaimed $DYDX  from the Retroactive Mining rewards program were transferred to the Community Treasury.

**7.5% (75,000,000 $DYDX) based on the Liquidity Provider Rewards Formula(s),**

**16.2% (162,004,734 $DYDX) to the Community Treasury and Rewards Treasury,**

**0.6% (5,753,430 $DYDX) to users staking $USDC to a Liquidity Staking Pool,**
- In DIP 14, the dYdX community voted to set the rewards associated with staking $USDC to 0. The 383,562 $DYDX previously distributed to USDC stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

**0.5% (5,049,079 $DYDX) to users staking $DYDX to a Safety Staking Pool,**
- In DIP 17, the dYdX community voted to set the rewards associated with staking $DYDX to 0. The 383,562 $DYDX previously distirbuted to $DYDX stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

**27.7% (277,295,070 DYDX) to past investors of dYdX Trading Inc.,

**15.3% (152,704,930 DYDX) to founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation, and**

**7.0% (70,000,000 DYDX) to future employees and consultants of dYdX Trading Inc. or the dYdX Foundation.**

## How Is the dYdX Network Secured?

DYDX is an [ERC-20](https://coinmarketcap.com/alexandria/glossary/erc-20) token deployed on the [Ethereum](https://coinmarketcap.com/currencies/ethereum/) mainnet. dYdX’s layer 2 scaling solution is built on Starkwire’s ZK-STARKS technology and relies on Ethereum blockchain to verify transaction proofs.

When Will DYDX Trading Begin?

DYDX token first became available for purchase in September 2021.


## Can DYDX Hit $50?

During the two instances of notable [Bitcoin](https://coinmarketcap.com/currencies/bitcoin/) price drops over the month of September 2021, DYDX did not experience a considerable decrease in value. Furthermore, DYDX managed to double its value and went from $10.23 to $22.66 in a little over a month. Taking into account that dYdX is presently one of the leading decentralized exchanges that has already established itself in the crypto world, its newly released governance token has a good chance in maintaining the price growth and reaching $50.


## Where Can You Buy DYDX?

DYDX is currently available for purchase on the following exchanges: [Binance](https://coinmarketcap.com/exchanges/binance/), [Huobi Global](https://coinmarketcap.com/ru/exchanges/huobi-global/), [FTX](https://coinmarketcap.com/exchanges/ftx/), [KuCoin](https://coinmarketcap.com/ru/exchanges/kucoin/), [Gate.io](https://coinmarketcap.com/exchanges/gate-io/), [Kraken](https://coinmarketcap.com/exchanges/kraken/), [Poloniex](https://coinmarketcap.com/exchanges/poloniex/), [Uniswap (V3)](https://coinmarketcap.com/exchanges/uniswap-v3/), ​​[OKEx](https://coinmarketcap.com/exchanges/okex/), [LBank](https://coinmarketcap.com/exchanges/lbank/), [Sushiswap](https://coinmarketcap.com/exchanges/sushiswap/), [Crypto.com Exchange](https://coinmarketcap.com/exchanges/crypto-com-exchange/), [0x Protocol](https://coinmarketcap.com/exchanges/0x-protocol/), [XT.COM](https://coinmarketcap.com/exchanges/xt/), [BitZ](https://coinmarketcap.com/exchanges/bitz/), [WhiteBIT](https://coinmarketcap.com/exchanges/whitebit/), [1inch Exchange](https://coinmarketcap.com/exchanges/1inch-exchange/), [WOO Network](https://coinmarketcap.com/exchanges/wootrade/), [CoinDCX](https://coinmarketcap.com/exchanges/coindcx/), [Deepcoin](https://coinmarketcap.com/exchanges/deepcoin/), [Cryptology](https://coinmarketcap.com/exchanges/cryptology/), [BKEX](https://coinmarketcap.com/exchanges/bkex/), [DigiFinex](https://coinmarketcap.com/exchanges/digifinex/), [Pionex](https://coinmarketcap.com/exchanges/pionex/), [BW.com](https://coinmarketcap.com/exchanges/bw-com/), [BitMart](https://coinmarketcap.com/exchanges/bitmart/), [AEX](https://coinmarketcap.com/exchanges/aex/), [ZBG](https://coinmarketcap.com/exchanges/zbg/), [MEXC](https://coinmarketcap.com/exchanges/mxc/), [BiONE](https://coinmarketcap.com/exchanges/bione/), [Bibox](https://coinmarketcap.com/exchanges/bibox/), [Hoo](https://coinmarketcap.com/exchanges/hoo/), [Hotbit](https://coinmarketcap.com/exchanges/hotbit/), [Decoin](https://coinmarketcap.com/exchanges/decoin/), [Bitrue](https://coinmarketcap.com/exchanges/bitrue/), [HitBTC](https://coinmarketcap.com/exchanges/hitbtc/), [Tokocrypto](https://coinmarketcap.com/exchanges/tokocrypto/), [Mandala Exchange](https://coinmarketcap.com/exchanges/mandala/), [CoinW](https://coinmarketcap.com/exchanges/coinw/), [BigONE](https://coinmarketcap.com/exchanges/bigone/), [ZT](https://coinmarketcap.com/exchanges/zt/), [AOFEX](https://coinmarketcap.com/exchanges/aofex/), [WBF Exchange](https://coinmarketcap.com/exchanges/wbf-exchange/), [CoinBene](https://coinmarketcap.com/exchanges/coinbene/) and [Bitget](https://coinmarketcap.com/exchanges/bitget/).

Cryptocurrency newbie? You can read more about how to enter the market and how to buy BTC, DYDX or any other token in CoinMarketCap education portal — [Alexandria](https://coinmarketcap.com/alexandria/).


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