Ethereum-based blockchain project, dYdX, is developing open-source protocols for decentralized margin and derivatives trading for cryptocurrencies. The project’s first platform, expo, will enable trustless margin trading for Ethereum tokens.Expo – a Trustless Margin Trading Platform on the Ethereum network
On September 18, 2018, dYdX’s Head of Operations, Zhuoxun Yin, announced the launch of expo, the first platform that provides traders with a completely trustless way to margin trade on the Ethereum blockchain.
expo is being developed on top of the dYdX protocol and will enable the trading of so-called “margin tokens.” An example of a dXdY margin token would be ETH, which is an ERC-20 token pegged to a short ether (ETH) position.
Trading on expo will be an easy three-step process, once the traders have set up their MetaMask wallet.
Traders first choose the type of margin token they want to buy. These can be short tokens or leveraged tokens. Next, traders need to decide on the amount of ETH they want to invest in a specific trade and, finally, they need to click the “Buy” to confirm the transaction.
The key benefit of trading on expo over other margin trading platform is that “the mechanics of the protocol (obtaining a loan, spot trading) are abstracted away from the trader, significantly simplifying the margin trading experience,” according to Yin.
That means that expo will automatically source lending liquidity in the underlying asset from dYdX lending partners, source liquidity from decentralized exchanges (DEXs), handles collateral management, and mints new short or leveraged tokens to provide users with margin exposure.
Expo will streamline margin trading for Ethereum tokens so that anyone who wants to short Ethereum or ERC20 tokens or leverage long positions can do so with only a few clicks of a button. The expo trading platform will officially launch on October 2, 2018.Decentralized Derivatives Tra...