dYdX Review: better than HyperLiquid?

In the world of DeFi, speed, security and self-custody are everything. And that’s exactly what dYdX offers — a non-custodial, decentralized crypto trading platform, primarily for perpetual futures.

With more people moving away from centralized exchanges after regulatory crackdowns and security breaches, dYdX stands tall as a trustless and feature-rich alternative.

In this article, we’ll review dYdX and its backstory, what makes it tick, cool tools and features, how it compares to other exchanges, its trading fees, and yes — the pros and cons to help you decide if it’s the right platform for you.

What is dYdX?

dYdX is a decentralized exchange (DEX) where you can trade crypto derivatives, especially perpetual contracts — these are like futures contracts but without an expiry date. Unlike platforms like Binance or Coinbase, dYdX lets you trade directly from your wallet without giving control of your funds to anyone.

That means you’re not just trading crypto — you’re trading while keeping full ownership of your assets. That’s what makes it special in the growing world of DeFi (Decentralized Finance).

Background: How Did dYdX Start?

Founded in 2017 by Antonio Juliano, a former Coinbase engineer, dYdX began as a small margin trading protocol. But it quickly gained attention for giving people more control and freedom over their trades.

In 2021, it took a major step forward by partnering with StarkWare, which allowed the platform to move to Layer 2 technology. This upgrade helped solve Ethereum’s biggest problem: high gas fees. It made trades faster and cheaper, and that was a game-changer.

Then came the $DYDX token, which gave users governance power and rewards — making the community a bigger part of the ecosystem.

Key Features of dYdX 

1. Perpetual Futures Trading

dYdX allows you to leverage trading on crypto assets such as Bitcoin and Ethereum. It was the first DEX to enable this in a decentralised manner. Today, we have more such products like HyperLiquid, GMX, etc.

You can also trade with leverage up to 20x on major coins. So, if you have $100, you can take a position worth $2,000. 

Warning: Higher leverage increases your chances of liquidation if the market moves against you even slightly. So, it’s recommended only for experienced traders.

2. Layer 2 Speed with Low Fees

dYdX is built on StarkEx, a Layer 2 solution by StarkWare. In simple words, this technology bundles many transactions together and sends them to the Ethereum blockchain, saving time and money.

This means

• Faster transactions
• Almost zero gas fees
• Smooth trading experience

Even during high network congestion, trades on dYdX remain fast and affordable.

3. Non-Custodial Platform

Most centralized exchanges (CEXs) take control of your funds while trading. But dYdX is non-custodial, which means:

• You trade directly from your wallet (like MetaMask or Coinbase Wallet)
• You always own your funds
• There’s no risk of exchange hacks stealing your crypto

This adds a layer of safety and privacy that centralized platforms can’t provide.

4. dYdX Advanced Trading Interface

The user interface is sleek and designed for serious traders. On one screen, you’ll find:

• Live charts (candlestick format)
• Order book
• Trade history
• Buy/Sell buttons
• Leverage slider

It looks and feels just like the professional tools on platforms like Binance Futures or TradingView, but it’s built into a decentralized system.

5. Utility of DYDX Token

Holding $DYDX tokens comes with benefits:

• Governance: Vote on platform decisions, such as new features or fee changes
• Fee discounts: Reduced trading fees based on how many tokens you hold
• Incentives: Earn rewards through trading volume or liquidity mining

It’s more than just a token — it gives users a say in how the platform works.

A Quick Look at Its Stats (July 2025)

As of now, dYdX has 268 different trading markets and holds over $311 million in Total Value Locked (TVL) — which means users have trusted the platform with hundreds of millions of dollars. There’s also more than $207 million in open interest, showing a strong amount of ongoing trades and capital in motion.

To protect traders from sudden losses, there’s a safety net of $12.4 million in their insurance fund — an important feature for leveraged markets.

On the user side, dYdX sees 4,000–5,000 active traders every week, across platforms like Android, iOS, Web, and API. Weekly trading volumes have gone as high as $10 billion, which puts dYdX in the big leagues of decentralized trading.

Even in mid-2025, the platform continues to grow, with over 1,200 new traders joining in a single week, proving that interest in decentralized derivatives is still strong.

Tools and Interface – A look inside dYdX platform

dYdX is designed to make advanced trading easy. Let’s look at the main tabs you’ll find on the site:

dYdX review: Trade Feature

This is where the real action happens. You can

• View live crypto price charts
• Set up trades with your preferred leverage
• Place market, limit, and stop-loss orders
• Monitor open trades in real time

It’s all cleanly laid out for quick decisions.

Portfolio

Want to track your profit or loss? This is your dashboard

• See your open and closed positions
• Monitor your margin, equity, and liquidation risks
• View detailed trade history

Perfect for understanding where your trades are heading.

Markets

This is where you explore different crypto assets available for trading.

• See price charts
• Check funding rates
• Look at volume and open interest

Around 3,000–5,000 weekly active traders are consistently making moves. Weekly trading volume often climbs into the billions of dollars, showing strong liquidity. dYdX’s market activity shows it’s a busy, well-funded, and well-trusted platform with a healthy mix of new and returning traders.

Each asset has its own detailed page for deeper insights.

Rewards

If you’re eligible for trading incentives or staking rewards, you can check your balances and claim them here. It shows the leader board. This tab lists the top-performing traders on the platform based on profits. It’s a fun way to see who’s killing it and get some motivation.

Standard Affiliates

• Unlock your affiliate link by trading at least $10,000 on dYdX. It can be done with or without leverage.
• Earn up to 15% of taker fees from each referred user’s trading—up to 3,000 USDC per referral per 30 days.
• Payouts are real-time, on-chain, in USDC—so you get paid instantly as referrals trade.

VIP Affiliates

• VIPs can earn a generous up to 50% of taker fees, capped at 10,000 USDC per referral per 30-day period.
• To qualify, you’ll need high social influence (e.g., a large following or high-traffic website), and applications are reviewed on-chain via governance.

Governance

dYdX is community-run, meaning decisions are made by holders of the $DYDX token. The more tokens you hold or stake, the more voting power you get. You can vote yourself or delegate to someone you trust.

Proposals — like adding new markets, changing leverage limits, adjusting fees, or funding community projects — are discussed in the forum before going on-chain for a set voting period. If enough votes are cast in favor, the change is implemented.

This setup ensures the platform’s direction is shaped by its users, not just a central team.

Fees on dYdX

Unlike many platforms that charge high or hidden fees, dYdX has a clear and tiered fee system

Your 30-Day Trading Volume	Taker Fee	Maker Fee
Less than $1 million	0.05%	0.01%
$1M – $5M	0.045%	0.01%
$5M – $25M	0.04%	0.005%
$25M – $125M	0.035%	0%
Over $125M + platform share	0.025%	Up to –0.011% (rebate!)

Yup, you read that right! If you’re a big liquidity provider, dYdX actually pays you a rebate in the form of negative maker fees. That’s rare and a huge incentive for pro traders

Also, there’s a funding rate system to keep prices in check, especially during high demand. It’s similar to interest — either you pay or earn, depending on your trade.

If you hold $DYDX tokens or join staking, you can reduce fees even further:

DYDX Token Balance	Approx. Fee Discount
100–1,000 DYDX	3%
1,000–5,000 DYDX	5%
5,000–10,000 DYDX	10%
10,000–50,000 DYDX	15–30%
Over 50,000 DYDX	Up to 50%

Note: Taker fees can’t drop below 0.02% even with the highest discount. Still, it’s a great deal for regular traders.

Pros and Cons of dYdX

dYdX Pros

1. No KYC Needed: You can start trading right away with your wallet — no ID proof or registration.
2. Decentralized Control: You control your money — not the exchange.
3. Fast and Cheap: Thanks to Layer 2, trading is smooth, quick, and cost-effective.
4. Professional Interface: Get access to tools even expert traders love.
5. Real Rewards: Trade more, earn more through rewards and tokens.
6. Transparent and Secure: Smart contracts and open governance make it reliable.
   

dYdX Cons

1. Not Available in the United States:  Even though it’s a decentralized exchange, it follows regulatory restrictions and blocks U.S. IP addresses from accessing its core features.That means To stay compliant with U.S. regulations like the SEC and CFTC, dYdX had to geo-block U.S. users. Even using a VPN violates their terms, so it’s not recommended.
2. No Spot Trading: This can be a dealbreaker for casual traders. Unlike platforms like Binance or Coinbase that allow you to simply buy and hold crypto, dYdX focuses only on perpetual contracts (derivatives).If you’re looking to HODL Bitcoin or Ethereum, this is not the right platform. It’s more suitable for short-term traders and pros who know how to manage leverage.
3. Not for Beginners: The platform is a bit advanced and might feel overwhelming at first.
4. No Fiat Deposit: You can’t deposit INR, USD, or any regular currency directly — you need crypto first.
5. Wallet Needed: Requires a Web3 wallet setup which may confuse first-time users.
6. Liquidation Risk: High leverage means higher risk — always use stop-loss.

Who Should Use dYdX?

If you’re someone who:

• Is comfortable with MetaMask or Web3 wallets
• Understands crypto trading basics
• Wants to trade without giving up control
• Likes transparency and rewards

Then dYdX is made for you.

But if you’re new to crypto and just want to buy Bitcoin, you may want to start with platforms like WazirX, Coinbase, or CoinDCX first.

Customer Support on dYdX: Limited but Active

Since dYdX is a decentralized exchange (DEX), it doesn’t offer 24/7 live chat or call-based customer service like centralized exchanges (e.g., Binance or Coinbase). But that doesn’t mean you’re left unanswered.

Help Options Available:

• Help Center: dYdX has a detailed Help Center with guides, FAQs, and troubleshooting tips.
• Email Support: You can raise tickets or email them directly for specific issues.
• Discord Community: Active traders often get real-time help or feedback from the dYdX Discord server where community managers and mods assist users.
• Twitter Updates: They frequently post updates, issue alerts and maintenance notices via @dYdX.

Is dYdX Worth It?

Yes, definitely if you want serious trading power with full freedom. dYdX offers the best of both worlds, the professionalism of centralized exchanges with the independence of DeFi. With fast trades, low fees and strong security, it’s an ideal platform for those ready to level up their crypto game.