Exchange models have always interested me. With my background in marketplaces, the business model is pretty simple to understand: a take rate on every trade + upcharges on the more “exotic” products & features like derivatives & margin. However, building on chain with a Layer 2 via Starkware is an interesting approach which lends dydx’s comp set to more of a “DeFi Protocol” than an exchange business model like Coinbase. This helps them avoid the headwinds of traditional brokerage/exchanges which are currently racing to the bottom in terms of fees.

Combine an already exotic product suite offering by dydx and a governance token that is powering an ecosystem to enable staking, LP mining & discounts/incentives on trades and there’s a formula for powerful ecosystem growth.

Sign up was insanely easy as well. Just connect your Metamask Wallet, create a user and add your email and enable dydx to approve USDC through your Metamask and there you go. I just wish the whole product suite was available in the US.