DeFi dydX, CEX vs. DEX – It is common to contrast our cryptographic universe with that of traditional finance. Indeed, the genesis of bitcoin it carries with it the fundamental principles that are at the origin of the disruptive blockchain ecosystem: decentralization, anonymity and ownership. However, this lack of an intermediary makes it difficult to access cryptocurrencies. This is why DEXs, decentralized exchange in English, are still too often avoided by holders of digital assets. Most of them prefer the simplicity of CEX (centralized exchange), at first glance better able to take on the heavy lifting of mass adoption. Unfortunately, from Celsius to FTX again this week, the news does not stop telling us defects of centralization. A providential emphasis on platforms like dYdX which offer a different, safer model because it is more decentralized.
Le Journal du Coin brings 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 market-like business modelsand sometimes even a bank.
The advantages that CEX emphasize are numerous. Transaction speed, ease of use, fixed fees, centralized exchange doesmiddleman between you and your cryptocurrencies. It offers you a simplification of the process. It protects 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 pCentralized FTX platform proves to us again today, centralized platforms can pose serious risks to your funds. Just like the nightmare experienced by users of the exchange run by Sam Bankman-Fried. Centralized platforms are profitable businesses. Their main purpose: serve the interests of society. Moreover, frauds way out of cheating and others ponzi pyramids are all examples that illustrate the drawbacks of a centralized system.
Privileged mediators of a galloping regulation, CEX illustrate and act upon notions which, paradoxically, are contrary to philosophy and principles by Satoshi Nakamoto, the creator of Bitcoin. Therefore, limited, limited, controlled users of cryptocurrency platforms cannot benefit from all the possibilities of decentralized finance, DeFi.
Decentralized cryptocurrency platforms
Otherwise, 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 do so become actors of their investments.
of 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 cyber attacks. Thanks to this approach, dYdX proposes to facilitate access to DeFi so that everyone can easily benefit from these highly profitable protocols.
Indeed, still embryonic, decentralized finance platforms face difficulties that dYdX makes it possible to bypass: limited functionalities, complicated interfaces, subtle manipulations for beginners. Their offers are no less interesting: favorable returns, the possibility of converting your cryptocurrencies (swap), access to decentralized applications (DApps) are all benefits that make DeFi platforms valuable for our ecosystem.
dYdX: DeFi advantages without borders
The simplicity of CEX, the revolution of DEX
DYdX thus allowing us to remove the clichés and realize that DeFi can be accessible, even for beginners!
Currently in blockchain transition Ethereum in Layer 2 StarkEx (we will come back to this), the dYdX platform will be for its v4 (the main network of which will be deployed in the second quarter of 2023) with full capacity to provide the following services:
- Margin trading;
- permanent contracts;
- staking (passive income in native cryptocurrency dYdX).
In other words, dYdX opens a decentralized path for you in order to allow you to get the most out of DeF, inthe original 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 guarantee that you can fully enjoy the joys of decentralization, without restrictions.
Additionally, dYdX allows its users to enjoy a governing power, another great innovation made possible by decentralization. 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. Of course, e With great powers come great responsibilities. So don’t forget to bookmark carefully” 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 founded on EthereumdYdX has chosen to settle in StarkEx. It is a second layer solution called “Layer 2“. The secure, decentralized platform allows you to avoid using the Ethereum blockchain to transfer your funds. This sometimes has excessive gas costs. Otherwise, deposits and withdrawals are not taxedunlike a CEX.
This way you will be able to benefit from a wide selection of cryptocurrencies (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 realized, the advantages of a decentralized platform like dYdX are huge. Enjoy your cryptocurrency returns at a lower costearn cryptocurrency as a set reward, with just a few clicks, all without KYC and without trusting your cryptocurrency 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 pictures are removed, and still after some additional research, it will become clear to you that this dYdX offers a really important solution. A simple decentralized exchange in which you are a governance actor. The dark news of the moment reminds us very much of the importance of doing your research. We suggest you start here by checking the seriousness of this decentralized platform yourself our dYdX tutorial.