Thread by @mrjasonchoi

Since launch, @dydxprotocol has made $2.4M in fees at a 30% monthly growth rate.

But they have much bigger ambitions... 👇

"Our goal is to become one of the biggest exchanges in crypto, PERIOD. Not just one of the biggest *decentralized* exchanges." - @AntonioMJuliano

That's ambitious considering centralized exchanges are raking in *billions*. How do they plan to pull this off?

1/x

At a time when DeFi automated market maker (AMM) like @UniswapProtocol are overtaking volumes on industry giants like @coinbase, dYdX is sticking to its guns:

"AMMs are good for long-tail assets, but we fat tail volumes are better for order books"

2/x

Exchanges are a volume game. To drive volumes, dYdX is focusing on pushing out the most popular financial contract in crypto: the $BTC perpetual swap

Since launch, dYdX has transacted over $1.5B so far.

3/x

But let's face it - if you're moving large volumes, it's easier to use centralized order book exchanges like FTX or Binance. It's cheaper, faster, and oftentimes more liquid.

@dydxprotocol hopes to close the gap by transitioning to layer 2 by partnering with @StarkWareLtd.

4/x

But compared to 2018 when dYdX was one of the few projects around, the DeFi margin trading landscape is getting more competitive as well - @ProjectSerum is building on @solana, @synthetix_io is building on @optimismPBC.

How will @dydxprotocol fend them off?

5/x

If you spend anytime thinking about the above questions, @AntonioMJuliano and I dive deep into each of the topics above in this week's episode of @theBlockcrunch.

Tune in and subscribe here:

- apple.co/2KtMDsM
- spoti.fi/33ebsQ6

6/x