DeFi dydX, CEX versus DEX – It is common to oppose our cryptographic universe to that of traditional finance. Indeed, the genesis of bitcoin carries with it fundamental principles that are at the origin of the disruptive blockchain ecosystem: decentralization, anonymity and ownership. However, this absence of an intermediary makes it difficult to access cryptocurrencies. This is why DEXs, decentralized exchange in English, are still too often shunned by holders of digital assets. The majority of them prefer the simplicity of CEX (centralized exchange), at first glance more capable of taking on the heavy work of mass adoption. Unfortunately, from Celsius to FTX again this week, the news never ceases to show us the defects of centralization. A providential highlight for platforms like dYdX which offer another model, more secure, because it is more decentralized.
Le Journal du Coin offers you this promotional article in collaboration with dYdX.
Centralization and Decentralization: the enemy brothers of cryptocurrency
Centralized cryptocurrency platforms
You know them all. Binance, Kraken or even Uniswap. These famous and centralized platforms are stock exchange-like business modelsand sometimes even a bank.
The advantages that CEXs highlight are numerous. Transaction speed, ease of use, fixed fees, the centralized exchange makes theintermediary between your cryptocurrencies and you. It offers you a simplification of the process. It keeps your digital assets. In short, it does the work for you. In fact, it is common to hear that CEXs are the most suitable areas for beginners.
However, and the news of the pFTX centralized platform proves it to us again today, centralized platforms can present serious dangers for your funds. Like the nightmare experienced by users of the exchange run by Sam Bankman-Fried. Centralized platforms are for-profit businesses. Their primary goal: serve the interests of society. Furthermore, scams exit scam and others ponzi pyramids are all examples illustrating the flaws of a centralized system.
Privileged intermediaries of a galloping regulation, the CEX illustrate and operate on notions which, paradoxically, are contrary to the philosophy and principles of Satoshi Nakamoto, the creator of Bitcoin. Constrained, limited, controlled, users of cryptocurrency platforms cannot therefore benefit from all the opportunities of DeFi, decentralized finance.
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Decentralized cryptocurrency platforms
Conversely, the decentralized crypto platforms (DEX), like dYdX, are rethinking the notion of exchange and traditional finance. They redraw the concepts of ownership and allow their users to become actors of their investments.
The benefits of DEXs are also numerous. Users have their own private keys. Thus, they remain anonymous and preserve their personal information. In addition, they are actually less exposed to cyberattacks. Thanks to this approach, dYdX proposes to facilitate access to DeFi so that everyone can benefit from these very lucrative protocols with ease.
Indeed, still embryonic, the decentralized finance platforms face difficulties that dYdX makes it possible to circumvent: limited functionalities, complicated interfaces, delicate manipulations for beginners. Their offers are no less interesting: advantageous returns, possibility of converting your cryptocurrencies (swap), access to decentralized applications (DApps) are all benefits that make DeFi platforms valuable for our ecosystem.
dYdX: the advantages of DeFi without limits
The simplicity of CEX, the revolution of DEX
DYdX thus allows us to lift the clichés and understand that DeFi can be accessible, even to beginners!
Currently in transition from Ethereum blockchain to Layer 2 StarkEx (we will come back to this), the dYdX platform will be for its v4 (whose mainnet will be deployed in the second quarter of 2023) in full capacity to offer the following services:
- spot;
- Margin trading;
- perpetual contracts;
- staking (passive income in native dYdX cryptocurrency).
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In other words, dYdX opens up a decentralized path for you with the aim of letting you get the most out of DeF, in theoriginal spirit of freedom that saw the birth of blockchain technology. The anonymity allowed by the platform and the fact of having the private keys of the wallet in which your funds are stored ensure that you can fully enjoy the joys of decentralization, without constraint.
Furthermore, dYdX allows its users to enjoy a governance power, another major innovation made possible by decentralization. The dYdX Foundation, Decentralized Autonomous Organization (DAO) thus ensuring that users can vote on decisions, changes and development of the platform.
The platform’s cryptocurrency, DYDX, finds all its usefulness and importance here. It allows its holders to vote on proposed changes to the protocol. Obviously, of With great powers come great responsibilities. So remember to carefully note your “ seed phrase” (secret phrase), the platform will not be able to give you a copy if you lose them.
dYdX: DeFi and security for your funds, at a lower cost
Originally established on EthereumdYdX has chosen to deploy on StarkEx. It is a second layer solution called “Layer 2“. Secure, the decentralized platform allows you to avoid using the Ethereum blockchain to transfer your funds. This sometimes having exorbitant gas costs. Otherwise, deposits and withdrawals are not taxedunlike a CEX.
You will thus be able to benefit from a wide choice of cryptocurrency (36 different cryptocurrency pairs). In addition, transactions are at a lower cost. Which is currently not possible on a centralized exchange.
As you will have understood, the advantages of a decentralized platform such as dYdX are enormous. Enjoy the returns of your cryptocurrencies at a lower costearn cryptocurrency as a staking reward, in just a few clicks, all without KYC and without entrusting your crypto to a third party.
In a chaotic context, going over the definitions, the basics of what a DEX and a CEX are seemed essential to us. Once the shots have been taken down, and still after some additional research, it will appear obvious to you that dYdX offers a truly relevant solution. A simple decentralized exchange, in which you are an actor of governance. The dark news of the moment reminding us too much of the importance of doing your own research. We suggest you start here by checking for yourself the seriousness of this decentralized platform with our dYdX tutorial.