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I only know that I know nothing

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3 months ago

Hey, I'm here again! Yes, the crazy dude who writes stuff on the internet!

"I only know that I know nothing" is probably the most well-known phrase of all those attributed to Socrates. For me, it was always an interesting phrase because a teacher discovered it when I was little telling us in class that the wisest man that had existed until his time had pronounced it.- Hey dude, always with strange things, we want you to talk about crypto, man!- I already know that this is not Blogger, it was just a small introduction to my discovery today.

And it is that what for me is a discovery today, is the largest decentralized platform for derivatives trading. Ah, it turns out that maybe you don't know that much either, right?


Well, then let's go by parts (as jack the ripper would say). The platform is dYdX.exchange and I discovered it by chance, looking for fresh news to bring you closer to those who have Publish0x as a source of information. The main news is that its new update, version 4, is going to move to an independent blockchain based on the Cosmos SDK and the Tendermint proof-of-stake consensus. In other words, it leaves Ethereum where, according to what they say, layer 1 and layer 2 solutions cannot satisfy their transaction needs and offer them a 100% decentralized solution.


What does dYdX have that differentiates it from other DEX?

In the first place, its way of obtaining liquidity is not AMM (Automatic Market Maker) where users put liquidity in Pools in exchange for rewards, but dYdX uses an order book. The platform's liquidity providers put their bids at the price they want and those who want to execute a buy order can do exactly the same thing, put a buy order at the price they want and it will be executed when the target price is reached.


Why is it an exchange to consider?

As I mentioned above, it is the best positioned decentralized platform in derivatives trading. Derivatives are financial products linked to the value of an asset.

Why would I want to invest in a derivative instead of the asset?

Well, it is a question that I would not know how to answer with certainty, but, I can give you some market capitalization figures that have caught my attention:

Cryptocurrencies:

$882,620,526,476.68


Joint value of world stock markets:

$121,200,000,000,000.00 approx.


Real state value:

$326,000,000,000,000.00 approx.


Derivatives:

$640,000,000,000,000.00 ????

The questions are because the figures that I have found are based on the value of futures contracts but these are nothing more than speculations on how the price of something will be in the future.


This is where dYdX, decentralized derivatives trading, becomes strong. Something that is still a goal to be achieved since right now the order book is centralized although we consider it a decentralized exchange because the funds of the users, who initially operated in the main chain of Ethereum and today do so in the solution of StarkNet layer 2, they always stay in their wallets. The goal of 100% decentralization is in sight with the new independent blockchain in Cosmos. Its creator answered the question of whether he expected to be one of the largest exchanges, including centralized ones, saying that they had been working for that since its creation.

This post was first published in Publish0x by me, The Crazy Dude. If you liked follow me to see more like this!

Do not forget to follow all my advice if you want to lose your wife because you have put the rent money in "coins that are worth cents but can be worth thousands of dollars"

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Resources

  1. https://dydx.exchange/

  2. https://traders.studio/que-tan-grande-es-el-mercado-de-derivados/

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