dYdX
Crypto Overview
Intended Utility
dYdX is a decentralized cryptocurrency exchange (DEX) protocol that enables trading of perpetual contracts. The DYDX token serves as a governance token for the dYdX protocol, allowing holders to vote on protocol changes and receive trading fee discounts. The protocol is transitioning from Ethereum to its own purpose-built blockchain on Cosmos.
Business Model Analysis
The protocol generates revenue through trading fees from perpetual contract trading. While the base technology and governance aspects align with halal principles of transparency and community participation, the core product offering (perpetual futures contracts) presents significant concerns from a Shariah perspective.
Actual Utility Assessment
dYdX has demonstrated substantial real-world adoption, with daily trading volumes regularly exceeding $1 billion. The platform ranks among the largest decentralized derivatives exchanges. The development team maintains active protocol development, with regular updates and improvements.
Token Distribution and Governance
The initial token distribution allocated: 50% to the community treasury and future staking rewards, 27.7% to past investors, 15.3% to founders/employees, and 7% to future employees. Vesting periods were implemented for team and investor allocations, showing some protection against immediate dumps. The project demonstrates transparency in its operation and development focus.
Crypto Impact
To assign a comfort level investing in dYdX from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to dYdX.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.