DYDX Token

dYdX exchange has already established itself as a big thing in the crypto world as the platform boasts around 64,000 unique traders, $11 billion in total volume across perpetuals and margins, and $250 billion in flash transactions from dYdX liquidity pools.
Furthermore, the platform also joined hands with StarkWare which employed StarkEx, a Layer 2 scalability engine that aims to improve the non-custodial trading on dYdX. In simple words, the impact will be similar to the upcoming Eth 2.0 upgrade, as the gas costs will become zero, minimum trade sizes will be reduced, and trading fees will be lower.
The purpose of dYdX is to provide secure trading services with low gas costs and fees. To achieve this, the platform is now moving towards Layer 2 with the help of StarkWare to increase its trade settlement capacity.
According to the official website, the dYdX platform is making this move because:

‘’Ethereum can process around 15 transactions per second (TPS), which is not enough to support the hypergrowth of DeFi, NFTs, and more. While Ethereum 2.0 will theoretically boost network speeds to 100,000 TPS, base layer scaling is still a while away. In the meantime, Layer 2 scaling solutions — in the forms of Rollups – free up Ethereum’s base layer by offloading execution, leading to reduced gas costs and increased throughput without increasing network load. StarkWare’s dYdX integration combines STARK proofs for data integrity with on-chain data availability to ensure a fully non-custodial protocol.’’

Source: Coin Market Cap

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