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You can trade ETH against the USD stablecoins USDC and DAI, using up to 500% leverage, and trade ETH and BTC perpetual futures contracts at 10x leverage.
You are trading live, on-chain (i.e., all trades are auditable transaction on the Ethereum blockchain).
Ethereum transaction fees are high right now, but if you trade using limit orders, there's no transaction fee.
The assets are in your Ethereum wallet, but are locked in the dydX contract. You have to deposit into the dYdX contract, and can withdraw available collateral at any time.
Also nice is the fact that your stablecoin deposits are lent directly to traders borrowing the funds for margin trades, with dYdX only getting a small slice. I'm currently getting 30% interest on my USDC (stablecoin that is 1:1 redeemable for USD) deposit!
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,057 since Dec 2013
Thanks Given: 4,409
Thanks Received: 10,225
Sorry not intentionally trolling here. I just don't understand DeFi properly.
How you guarantee you can withdraw? Whats the chance there's something in the code you or somebody else doesn't understand? What happens if dYdX gets wiped out?
Where does that 30% come from? Either somebody else is losing/paying it or they are printing it out of thin air at a rate that makes the US Fed look conservative.
You might take a look at FTX. Interface is excellent, and extremely fast. They also have a Progressive Web App, and the Android app is also quite good.
Side note, are you staking anything?
I intend to start talking about crypto futures a lot more on the site. Google Trends also shows it far outpacing traditional futures.
Good questions. Yes, there is contract risk with every DeFi platform.
1. There could be a hack/exploit of the contract, and someone could steal your funds.
2. There could be an unanticipated problem with the contracts, and your funds could be locked up or made inaccessible.
For those who still are concerned, one may buy contract risk insurance for dYdX at multiple platforms, the best known one being Nexus Mutual: https://nexusmutual.io/
Also, dydX is non-custodial. They can't confiscate or abscond with your funds, and the contract only locks funds being used as collateral for a margin loan. They don't have liquidation risk. They allow anyone on the Ethereum chain to liquidate trades that fall below the margin requirement, and the liquidator gets the funds at a discount. The dYdX platform just facilitates this. They aren't taking the opposite side of trades, or performing the lending from their funds.
Nothing is being printed. USDC is backed 100% by deposits of USD fiat in US banks. The high interest is being paid by margin traders.
It's a highly variable rate of interest. Although I'm getting 30% at the moment on USDC, I was getting 9% yesterday. It's driven entirely by supply & demand on the platform.
At times of high demand, margin interest can top 40%. But because of the volatility of ETH, these margin trades are held less than a week, on average.
Sorry for my delay in responding.
Yes, I stake USDC on Yearn Finance and on Harvest, ETH on Cream, and tokenized BTC on Badger.
All of those are on Ethereum.
I have some Cardano (ADA) that I've been staking since last year.
I also got some Edgeware (EDG) through their lockdrop, and have been staking it for about a year.
It's great that the site will discuss crypto futures more. I've traded futures a lot longer than I have traded crypto, and really enjoy discussing both.