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  • Trader Insights: Yield Farming

    This is episode #02 of Trader Insights, a series on trends & strategies for trading cryptocurrency.A new way to build network effects and liquidity in cryptoOne of the earliest beliefs within the Ethereum community was that native tokens were an excellent way to bootstrap network effects. While the idea of early network users owning equity was powerful, the actual implementation was blown out of proportion during the 2017 ICO boom. During that time, token holders were much more focused on sp… … More

  • Understanding Perpetual Market Funding

    At the heart of each perpetual market is the funding rate. The funding rate helps keep the price of a perpetual close to its index price by incentivizing traders to buy when the price is low relative to the index and to sell when the price is high relative to the index. Without a well-designed funding rate, the price of the perpetual may deviate systematically from the index price, which may make the perpetual less efficient and riskier to trade, and may disincentivize liquidity providers. While… … More

  • AMA Recap: Trader Spotlight feat. CryptoCat

    On April 23 2020, we hosted our first live AMA Spotlight with CryptoCat, prop trader and market maker who accounts for more than 2% of DEX trading volume and one of dYdX’s most active traders. In these AMA spotlights, our goal is to bring you the best insights and commentary from professional crypto traders, market makers, leading industry experts, and more! Below is a recap of the AMA with CryptoCat:Q: To get started, we’d love to hear a quick background about you and how you got started with t… … More

  • Comparing Perpetual Markets

    Perpetual markets are far and away the most liquid avenues to access cryptocurrency exposure. Ushered into the ecosystem by derivatives exchange BitMEX, perpetual markets now facilitate billions in daily turnover across exchanges all over the world, with a record $45 billion in volume transacted on March 12th, 2020. Perpetual markets have outpaced spot markets for myriad reasons, but the primary levers pulling in traders include high leverage, margining in crypto instead of fiat, and no expiry (… … More