dYdX V4 version introduction and operation tutorial

Speaking of dYdX, old leeks must be familiar with it - it was a proper "giant hair" back then, and many people relied on it to become gods. As the leader of decentralized perpetual contracts, dYdX’s popularity still dominates the list. It’s hard to accept it.

Today, as an old leek, I will tell you a lot about the new things that dYdX V4 has done, and I will show you how to play with it step by step. Don’t panic, just follow my lead and even a novice can get on board easily.

What is dYdX?

The dYdX project emerged in 2017, focusing on decentralized perpetual contracts, integrating lending, leveraged trading and contracts. Behind it are top venture capital firms such as Paradigm and A16Z. They have completed four rounds of financing and have a strong background.

In 2021, it was moved to Starkware, which suddenly solved the problem of high TPS and gas fees. The handling fee is already low, and it’s more friendly to Makers and large investors – isn’t this just another way to save you money? In order to promote the new version of V4, the protocol also plans to reward early users with $DYDX tokens, which is equivalent to another discount. Is it good?

V4 new version core features

This upgrade of dYdX V4 is simply a complete transformation. Old Leeks called him an expert after seeing it:

• Independent chain: V4 directly runs the Cosmos SDK to build its own chain. From now on, it is the master of its own business and no longer depends on others.
• Process Optimization: The order placing process has been greatly changed, using off-chain matching and on-chain consensus, and the efficiency has skyrocketed.
• Gas fee revolution: There is no need to pay gas fees at all for placing and canceling orders**, only a small amount will be charged when the transaction is completed. This is great news for high-frequency traders. They no longer have to worry about the pain of withdrawing orders when inserting a pin!
• Complete decentralization: The governance is completely decentralized, closer to the flavor of Crypto.

To put it bluntly, dYdX uses the Cosmos SDK to build its own chain, which is about to take off. The upgrade also brings a high-performance off-chain order book and matching engine, making the experience comparable to that of a centralized exchange (CEX), and the entire platform infrastructure has been overhauled.

Step-by-step tutorial: How to play with dYdX V4

Dydx V4 has just been launched not long ago, and now that the gas fee is not high, it is a good time to experience it. I will use the roughest words below to walk you through the process, and I guarantee that you will understand it after listening.

Important Prerequisite: To play DeFi applications such as dYdX, you must first have a cryptocurrency wallet (such as MetaMask, OKX Web3 wallet), and prepare some assets (such as ETH) in it to pay for possible on-chain interaction gas fees. If you are a complete novice and have never touched a wallet, it is recommended to master this basic tool first, otherwise it will be difficult to move forward.

Step One: Prepare Ammunition – Obtain Cryptocurrency

If your wallet is empty, you must first buy some cryptocurrency (such as USDT, ETH) from a formal centralized exchange (CEX), and then withdraw it to your wallet.

I must say something more here: Be sure to choose the world's top, licensed and compliant exchanges. Fund security is always the first priority! Don't go to those pheasant places whose names you have never heard of. The risk of running away is so high that it will be too late to cry.

For your convenience, we CoinRebate have compiled the permanent fee discount registration links for major top exchanges. Use our link to register, and you can directly get the handling fee reduction, lower transaction costs, and what you save is what you earn!

• Binance: The world's largest exchange, suitable for all types of users, and the market is very stable.
• Exclusive registration link: https://www.maxweb.black/join?ref=LULALA
• Recommendation code: LULALA (Enter to enjoy 20% handling fee discount)
• OKX (OUYi): Rich product line, especially suitable for users who play contracts and DeFi, and it is also convenient to move bricks.
• Exclusive registration link: https://www.lywebuuz.com/join/LULALA
• Recommendation code: LULALA (Enter to enjoy 20% handling fee discount)
• Bybit: The contract trading experience is excellent, the number of users is growing rapidly, and the stop loss and profit settings are very user-friendly.
• Exclusive registration link: https://www.bybitglobal.com/invite?ref=ODXBWMN
• Recommendation code: ODXBWMN (enter to enjoy 20% handling fee discount)

After registering on the exchange, completing KYC, buying USDT or ETH with legal currency, you are ready to withdraw it to your personal wallet. Don’t rush this step, safety comes first.

Step 2: Connect wallet to dYdX

1. Visit the official website: Make sure you are visiting the official domain name of dYdX. Beware of phishing websites and don’t be fooled by copycat websites.
2. Connect Wallet: Click "Connect Wallet" on the website.

• First make sure that your wallet (such as MetaMask) network has been switched to Ethereum mainnet.
• Select your wallet type and authorize the connection.
• The first time you connect, you may need to generate a wallet address on the dYdX chain and sign it. Just follow the prompts, don't panic.

Step 3: Deposit assets to dYdX

1. Click Recharge: After connecting to the wallet, look for the "Recharge/Withdraw" button in the upper right corner of the interface.
2. Select Network: Select which chain you want to recharge from (such as Ethereum mainnet). dYdX supports more than a dozen chains. You can choose Layer 2 networks with cheaper gas fees (such as Arbitrum and Optimism) to recharge. The speed is faster and the cost is lower. If you save, you will make money.
3. Select currency and amount: Select the asset you want to deposit (such as ETH) and enter the amount.
4. Confirm transaction: Confirm the transfer in your wallet and pay the network gas fee. Then just wait for the assets to arrive.

• Note: If you recharge from the Ethereum mainnet, the arrival time may be slightly longer. Charging from Layer 2 will be much faster, which is suitable for impatient people.

Withdrawal operation is similar to recharging, just do it in reverse. dYdX supports uploading assets to a variety of different chains, which is very convenient and saves you the trouble of finding another cross-chain bridge.

Step 4: Start trading

1. View assets: After the recharge is successful, your assets will be priced in USD and displayed clearly at a glance.
2. Select trading pair: Select the contract you want to play on the trading interface, such as ETH-USD.
3. Place an order:

• Select "Open Long" (bullish) or "Open Short" (bearish).
• Enter the amount or number of contracts you want to trade, and set the leverage multiple - novices are advised to start with a low leverage, don't be too aggressive.
• You can set stop-loss and take-profit prices in advanced settings to control risks.
• Click to place an order.

4. Closing: When you want to end this position, find the corresponding order in the "Order" or "Position" column and click Close (usually the "❌" icon) to close the position.

Core experience: During the entire transaction process, there is no gas fee at all for placing and canceling orders. The experience is as smooth as that of a centralized exchange. Only when the final transaction is completed, a handling fee will be charged, which is so low that it can be ignored.

Step 5: Familiar with the operation panel

• Investment Portfolio: Look at your total assets, profit and loss, current positions, all order records, and your transaction fee level - only by knowing yourself and your enemy can you win every battle.
• Market: Take a look at market data such as trading volume and open positions of each trading pair to assist in decision-making.
• $DYDX related:
• Trading Rewards: You can accumulate points by trading on dYdX, which may be exchanged for incentives in the future, which can be regarded as extra wool.
• Staking Rewards: You can pledge $DYDX tokens, participate in network governance, and earn income at your own pace.

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Finally, a cliché: The market is risky and investment needs to be cautious. Contract trading is highly leveraged and extremely risky, and your principal may be reduced to zero. This article is only a function introduction and operation guide of the dYdX platform and does not constitute any investment advice. Before deciding to trade, be sure to fully understand the risks and make decisions based on your own financial situation and risk tolerance. Don't follow the trend.

I wish you safe sailing and full harvest as you explore the world of decentralized finance! If you still have questions about regular exchange registration, you can come back at any time to take a look at the tutorials and discounts provided by our CoinRebate, and Laoliek will grow with you.

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• dYdX Advanced Player Guide: On-chain Perpetual Contract, a battlefield where leeks turn into sickles?