Ethereum-based decentralized exchanges (DEXs) are faced with the challenges of high gas fees that can cost traders anywhere from $5 to $100 per transaction depending on the congestion of the network, and long waiting times to achieve finality (up to 60 seconds for trades to finalize).
In this Chainlink Tech Talk, we’ll hear how dYdX, a leading DEX on Ethereum, migrated to a layer-2 solution and implemented Chainlink Oracles to significantly scale their protocol, allowing traders to deposit funds and trade instantly with zero gas costs, lower trading fees, and reduced minimum trade sizes. This led to an explosion in 24-hour trading volume on the dYdX protocol — from $20M in July to over $5B currently1, surpassing that of industry behemoths Coinbase Inc. and Uniswap.
dYdX is the developer of a leading decentralized exchange on a mission to build open, secure and powerful financial products. dYdX runs on audited smart contracts on Ethereum, which eliminates the need to trust a central exchange while trading. They combine the security and transparency of a decentralized exchange, with the speed and usability of a centralized exchange. dYdX is building a powerful and professional exchange for trading crypto assets where users can truly own their trades and, eventually, the exchange itself.
Sources: 1 | https://www.coingecko.com/en/exchanges/dydx_perpetual