Decentralized Crypto Exchange Kicks Off Contest in Pursuit of Real Alpha

Blockworks exclusive: DYdX Trading is also working on the next iteration of its native protocol

article-image

Source: dYdX

share

key takeaways

  • The buy-in is $2,500 worth of the stablecoin USDC
  • The DEX also plans to hold a series of Twitter Spaces to clue the public in on how the best traders “think about market moves,” an executive told Blockworks

Decentralized exchange dYdX Trading on Wednesday kicked off its first trading competition on the cryptocurrency protocol — aiming to pit an influencer against a trader with their money, quite literally, where their mouth is.

Competitors must buy in with $2,500 worth of the stablecoin USDC, an amount they receive back  — along with any profits made — after the event. There are also exclusive non-fungible tokens (NFTs) and cash prizes, denominated in stablecoins.

The growth lead of the decentralized exchange (DEX), Corey Miller, told Blockworks a lot of traders hype up their ability to derive alpha via Telegram groups and Twitter, but there’s not necessarily a public “good way to objectively measure how well people perform.”

Rankings for the savviest traders will be measured both in dollars won and lost and percentage gains and dips. The latter is a bid to eliminate whales coming in and parking their voluminous assets in safe plays to generate medium yield on a large amount of cryptocurrency. 

The idea is for participants to test their mettle across a wide range of liquid cryptocurrencies, including DeFi digital assets. 

The DEX also plans to hold a series of Twitter Spaces to clue the public in on how the best traders “think about market moves,” as well as delve into relevant macro topics. 

The launch comes as crypto markets continue to wobble, having lost trillions of dollars in market capitalization since their record highs, following the demise of Terra stablecoin UST and, more recently, the collapse of insolvent crypto lenders, including Celsius and Voyager.

An argument can be made, however, that traders — and especially those of the retail variety — now more than ever are hungry for access to reputable information. 

The team — which has been adding staffers, even as a number of high-profile crypto companies have been forced to make steep cuts — has an iPhone app and is now working on an Android sister product. The end goal is to make the experience of buying and selling digital assets on dYdX as seamless for traders as it is logging on to centralized exchanges such as Coinbase and executing a transaction.

Though DEXs have come a long way in terms of usability and accessibility, industry participants say, in the murky, difficult-to-understand world of DeFi (decentralized finance), there’s still much work to be done. 

Despite the market downturn, though, Miller said he’s optimistic DeFi is here to stay. 

“How does DeFi win?,” he asked. “It’s about creating a product people will actually want to use.”

The exchange also has its own DAO, complete with a native governance token that dictates how the DAO (decentralized autonomous organization) operates on a day-to-day basis. 

On the whole, DEXs such as dYdX have cut into the trading volumes of centralized titans, including Coinbase and Kraken, in a notable way. But, in Miller’s mind, the “most likely scenario is that the two coexist for a while.” And some DEXs have lower fees than centralized market makers — another potential boon to traders.

The team is also working on the next iteration of its native protocol, an endeavor expected to take six months or so that would, ideally, result in a completely decentralized platform, with the company largely taking a back seat to the community.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million