dYdX Unveils Expo; Margin Trade Cryptocurrency on Ethereum


The ability to margin trade cryptocurrency is about to get a whole lot simpler, secure, and accessible thanks to expo, a new trading platform built atop the dYdX Margin Trading Protocol that allows users to buy, sell, and manage ERC20-compliant dYdX Margin Tokens.

The expo platform was introduced to the community in an announcement on Wednesday authored by dYdX’s Zhuoxun Yin (Head of Operations). Touted as “the first completely trustless way to margin trade,” expo utilizes the very same dYdX Margin Trading Protocol that was introduced by the San Francisco-headquartered startup in April.

First Up: Short Ethereum (sETH)

Whilst expo is scheduled to go live on Ethereum’s mainnet on October 2nd, there will only be support for one dYdX Margin Token. That token will be Short Ethereum (sETH), an ERC20-compliant token pegged to a short ether (ETH) position.

Per Wednesday’s announcement, dYdX is “working with liquidity providers” in preparation for the creation of “additional short and leveraged assets.”

RadarRelay to the Rescue (Again)

RadarRelay, a dApp built atop the 0x protocol – the technology that, with Ethereum, enables dYdX – will be first to list expo’s Margin Tokens. dYdX has told the community to expect a sETH-related announcement from RadarRelay soon.

Just as it did for Set Protocol’s TokenSets in May, Radar has again demonstrated a willingness to cooperate with innovative projects looking to inject their built-out creations into the cryptosphere.

Margin Token Magic

The arrival of expo represents a disruptive moment for the cryptocurrency margin trading space. Whilst traders can already margin trade on platforms like BitMEX and OKCoin, they do so whilst relinquishing total control of their funds.

With expo utilizing dYdX’s innovative Margin Token Protocol, however, users will incur zero counterparty risk and retain control of their funds. Moreover, thanks to the Margin Token invention, there exists no “need for the trader to source lending and spot liquidity.”

With dYdX Margin Tokens it is possible to take a short or leveraged long position by simply buying a token, with no need to borrow or sell the underlying asset.”

Founded in mid-2017, dYdX is led by Antonio Juliano, a former software engineer at Coinbase. Last December, dYdX conducted a seed round led by Silicon Valley-based venture capital titans Andreessen Horowitz and Polychain Capital. dYdX even attracted investment from Juliano’s ex-employers, Coinbase co-founders Brian Armstrong and Fred Ehrsam.

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