Demystifying DeFi: What is dYdX & How Can You Make Money With It?

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The DeFi market offers an increasingly growing number of internet-native financial products and services that anyone with an Internet connection and a digital asset wallet can access. One of the most popular of these new decentralized financial protocols is the derivatives trading platform, dYdX.

In this guide, you will learn about dYdX and how you can potentially make money using this DeFi app.

What is dYdX Exchange?
dYdX is an Ethereum-powered decentralized trading platform that is backed by some major names in the digital asset space.

Initially allowing traders to trade ETH spot, with margin, and via perpetual futures on-chain, the team behind the protocol has recently added trading perpetuals on Starkware, a layer 2 solution. With layer 2 solutions offering lower gas costs, traders can enjoy lower trading fees and minimum position sizes.

Moreover, dYdX allows DeFi investors to earn interest on their digital assets by lending them to traders on the platform.more