𝗜’𝗺 𝗯𝗮𝗰𝗸! 𝗧𝗼𝗱𝗮𝘆, 𝗹𝗲𝘁’𝘀 𝗱𝗶𝘀𝗰𝘂𝘀𝘀 𝘄𝗵𝘆 𝗱𝗬𝗱𝗫 𝗰𝗵𝗼𝘀𝗲 𝗽𝗲𝗿𝗽𝗲𝘁𝘂𝗮𝗹 𝘁𝗿𝗮𝗱𝗶𝗻𝗴 𝗼𝘃𝗲𝗿 𝘀𝗽𝗼𝘁 𝘁𝗿𝗮𝗱𝗶𝗻𝗴. Because you might be wondering: “Why didn’t @dYdX just become spot exchange like Binance or Coinbase?” Why did they decide to focus fully on perpetual futures trading instead? Let’s learn 🔻 ——————— <-> ———————— Because of newbies, let me walk through the meaning of perpetuals?👇 A perpetual contract is a type of trade where you don’t actually own the token, you just trade its price (up or down), and the contract never expires (that’s why it’s called perpetual) For example, you believe the price of $BTC or $ETH will go up. Instead of buying $ETH, you just open a long position using leverage. If $ETH goes up, you make money. If not, you lose. So it’s a price bet, and not a token purchase. ——————— <-> ———————— Now, here’s why dYdX chose this path (Perpetual): → Perpetuals are where the action is. Believe it or not, perpetuals are more popular than spot trading, especially among pro traders. Over 80% of trading volume in crypto comes from derivatives, not spot. So dYdX did not even bother to compete with giants in spot. Instead they we dominated a fast-growing niche which is well-known today. → Second, perpetuals generate more fees. Let that sink in. Ngl, spot trades are simple. Buy, sell, done. But perpetuals are ongoing, and traders often use leverage, meaning: ➾ More frequent trades. ➾ More volume. ➾ More fees for the platform. This gives @dYdX a strong revenue model, and that’s important for sustainability. → Third, perps attract serious traders. Spot trading is for everyone - casual users, holders, beginners. But perps is for traders who want speed, leverage, advanced tools, and a decentralized experience (like dYdX offers). So instead of chasing newbies here and there, dYdX focuses more on POWER USERS. → Another reason is because; most derivative platforms were centralized (like Binance Futures). There weren’t many decentralized perps platforms that gave you full control of your funds, and onchain trading. dYdx turns things around by being the first real onchain exchange for perps, with pro-level tools. They built it, and they crushed it. ✔️ → Lastly, we all know spot trading has too much competition. There are dozens of spot exchanges already: → Binance →Coinbase → Kraken And even decentralized ones like: → Uniswap → PancakeSwap, and so on. If dYdX entered the spot market, they’d be just another option. ——————— <-> ———————— So, why no spot trading? Because dYdX wanted to: ➞ Focus on where the money is (perps). ➞ Serve advanced traders. ➞ Build a unique, powerful DeFi product. ➞ Avoid fighting big spot exchanges. ➞ Lead a new category instead of following the crowd. And guess what? It worked. ✔️ ——————— <-> ———————— Spot trading is simple. Perpetuals are powerful. Let that sink in, again. dYdX chose the harder, more technical path, but one that gives them: → More impact. → More loyal users. → A stronger business. → And a clear edge in the DeFi world. That’s why dYdx is winning today. I hope this helps you understand why dYdX chose to focus on perpetual trading instead of spot trading. Thank you very much for reading, and do well to stay tuned for more content like this. 💟