dYdX perpetual futures


i have two questions regarding perpetual futures in dYdX.

1) who is the counterparty of your trade? Is it another person that chooses the exact oposite trade than you, or is it the protocol itself?

2) From were are the funding payments paid? From the margin or from the equity on the dYdX wallet? Thanks

View Source

3 thoughts on “dYdX perpetual futures”

  1. Works like a traditional CLOB. Orders are matched offline and verified on-chain. Some amount of centralization here.

  2. The counterparty to your trade on DyDx are liquidity providers. They’re usually bigger institutions that earn $DYDX token rewards for providing liquidity: [https://docs.dydx.community/dydx-governance/rewards/liquidity-provider-rewards](https://docs.dydx.community/dydx-governance/rewards/liquidity-provider-rewards)

    The funding rate is designed to balance longs ans shorts so the side with more open trades pays the other side. Traders with open positions pay the funding rate to other traders with open positions in the opposite direction from their balances: [https://help.dydx.exchange/en/articles/5108514-understanding-funding-rate-details](https://help.dydx.exchange/en/articles/5108514-understanding-funding-rate-details)

    >The amount paid by longs or shorts is a reflection of both how much leverage each side is employing, and the delta between the index price and the price of the Perpetual Contract. Traders make or receive payments in proportion to the size of their market position.


Leave a Comment