Understanding dYdX Automated Market Making Protocol Tools

Crypto Exchanges

There are two types of exchanges in the entire crypto space;

  • Centralized Exchange
  • Decentralized Exchange

Centralized Exchanges

Decentralized Exchanges

Types of Decentralized Exchanges

Automated Market Makers

Dex Aggregators

Order Book Dex

Here is the best so far

dYdX

The Fastest and Most Powerful Decentralized Exchange Ever

Read on to learn about dYdX

  • Step 1
  • Step 2
  • Step 3

DyDx Products/Services

  • Spot Trading
  • Margin Trading — Cross Margin Trading & Isolated Margin Trading
  • Perpetuals Contract Trading
  • Lending and Borrowing

Spot Trading:

See what the interface looks like;

LIQUIDATION

  • Short — P × (1 + (M × V / W))
  • Long — P × (1 − (M × V / W))

Margin Trading

  • Isolated Margin Trade — Traders can leverage only on a single position allowing them to manage their risk by restricting the amount of margin allocated to a trade. In any possible liquidation, the total margin will not be affected instead the Isolated margin balance will be liquidated.
  • Cross Margin Trade: In Cross Margin, users have their entire margin shared across all open positions, this is a cool kind of margin trading as realized PnL (profit and loss) from one open position can help sustain another position from getting liquidated. The risk involved is that traders can lose their entire margin balance to a liquidation.

Perpetuals Contract Trading

Lending and Borrowing

Conclusion

dYdX is ensuring Decentralization for everyone including YOU.

GO Here.

Thanks for Reading

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