Acting as a governance token to the dYdX decentralized exchange, DYDX grants its holders the right to put forward and vote for the protocol improvement proposals. In addition to voting, DYDX tokens can be put to use within the DEX by depositing, securing trading discounts or staking thanks to dYdX being built on the layer-2 protocol.
On dYdX, users can lend, borrow and trade crypto assets. The DEX’s code is open-source and its functionality relies on smart contracts. Exceptional for an Ethereum platform scalability is achieved with ZK-STARKS, zero-knowledge rollups. The transactions are securely bundled into a packet of proofs which get verified in the main chain.