Dialogue with dYdX Foundation CEO: I bought my first BTC through Taobao. Trust is crucial to dYdX

Written by: Xiaobai Navigation Coderworld

Last year, dYdX Chain was officially launched. This year, dYdX once became the exchange with the highest transaction volume.DeFiproduct.Regarding dYdX, you may often use its products or have bought its tokens, but there is little content about the team behind it, its long-term vision, and its thoughts on DeFi competitors.

Coinciding with the Hong Kong Web3 Carnival, we interviewed the CEO of dYdX Foundation for the first time. Charles d'Haussy discusses the team behind dYdX, future product plans, competitors, and views on the Chinese-speaking market.

Through communication, we were also surprised to find thatCharles d'Haussy's FirstPiece Bitcoin It was actually purchased through Taobao, and it also led Hong KongFintech Company for many years.

In this issue, let us go behind the scenes of dYdX and learn about the thoughts and ideas of this OG team. It is full of practical information.

Main points

• dYdX operates through multiple decentralized entities, including dYdX Trading, dYdX Foundation, dYdX Operations DAO and dYdX Grants DAO, each operating independently, reflecting a decentralized governance model.

• Trust is critical and dYdX provides the best service to its users. dYdX will launch a new pricing accuracy system that will enable it to quickly list more newcryptocurrency, and enhance market competitiveness.

• dYdX is actively expanding the platform’s applications and functionality across more markets and currencies to meet the ever-expanding needs of the DeFi ecosystem.

• dYdX Chain is committed to achieving greater decentralization. The decision to launch dYdX Chain was made to provide the best service to users. dYdX Chain is a decentralized entity that provides a decentralized service to users.CommunityVoting drives major decisions and ensures the decentralized operation of the system.

• dYdX launched LP Vaults to solve liquidity issues and bring more diversified products, including various memecoins, to attract a wider user base.

• dYdX focuses on defining and understanding user groups, providing excellent products and services through clear target audience definition and high liquidity products to maintain competitive advantage. dYdX attaches importance to API improvement and prediction market exploration to enrich trading options and enhance user experience.

• dYdX actively engages in dialogue with regulators to demonstrateBlockchainTransparency of technology andSafetyIt promotes a legal framework more suitable for DeFi, emphasizing transparent and decentralized operating models to enhance user trust and comply with global regulations.

• dYdX has established Chinese Twitter andCommunitygroup, exploring major partnerships, believes that the Asian market is vibrant and rapidly developing, and is a key region for the global expansion of DeFi.

• dYdX focuses on its core product and value proposition, and does not chase incentives and turn to otherBlockchainPlatform, maintain commitment to core mission and goals. Emphasize the importance of resilience, teamwork and community involvement, manage cash flow and burn rate to cope with market ups and downs and maintain operational stability.

dYdX Team: Four Major Players in the Ecosystem

coderworld: Most people are more familiar with dYdX than the product itself, but may know little about the team behind it. Can you tell us about your background and how you came to join the dYdX Foundation?

Charles d'Haussy:

Of course, I am the CEO of the dYdX Foundation, a leading decentralizedexchange, the Foundation is one of several entities supporting the development of dYdX. Unlike traditional companies,dYdX operates through multiple decentralized entities.I joined the dYdX Foundation in 2022.

Before joining dYdX,I am the head of fintech in the Hong Kong government.Responsible for building the FinTech ecosystem in Hong Kong, Beijing, London and San Francisco. Later, I joinedBlockchainConsenSys, a major player in technology, serves as Head of Asia, managing teams in Hong Kong, Singapore, Australia, and Japan and overseeing products such as MetaMask and Infura, while also leading multiple central bank digital currency (CBDC) projects with countries such as Thailand, South Korea, and Australia.

I bought my first Bitcoin through Taobao in 2011, which opened mycryptocurrencyjourney of.Joining the dYdX Foundation as CEO appeals to me because it gives me the opportunity to work with new technologies like the Cosmos SDK stack and Lisk. This role fits my passion for building and learning by doing, especially in a decentralized and community-driven environment like dYdX.

dYdX has once again achieved $100 billion in trading volume, marking a significant milestone and demonstrating its massive influence in the market.

coderworld: In our communication with some project partners, we found that dYdX seems to have many departments. Is this true? Can you share the overall team structure and division of labor?

Charles d'Haussy:

dYdX is not operated through a single company, but rather through multiple entities, which highlights its decentralized nature.There are four main entities in the dYdX ecosystem:

1. dYdX Trading: Headquartered in New York, it previously operated the platform but is now focused on developing open source software. About 60 engineers work on improving the software but no longer manage day-to-day operations.

2. dYdX Foundation: I am the CEO here, and we have a team of about 20 people, spread across 10 different countries. We focus on governance, branding, and communication of the protocol, as well as interacting with the dYdX community and managing ecosystem relationships.

3. dYdX Operations DAO: This decentralized autonomous organization handles the operational aspects under the new structure, including hosting the application front end and deploying indexers, and the team has about 5 people.

4. dYdX Grants DAO: Responsible for managing the allocation of grants within the dYdX ecosystem, supporting various projects and initiatives.

Each entity has a specific role and operates independently within the overall structure of dYdX, reflecting a decentralized governance model that enables different groups to manage different aspects of the ecosystem without the need for centralized consent.

Community voting drives major decisions, including funding and strategic direction, further emphasizing the decentralized nature of dYdX.

Trust is crucial, dYdX provides the best service to users

coderworld: Overall, dYdX has become a leader in derivatives trading. Can you share your future product plans?DeFiWhat other issues need to be addressed in this field?

Charles d'Haussy:

A major upcoming update involvesA new pricing accuracy system, which will allow us to quickly list 200 to 500 new cryptocurrencies,Therefore, compared with otherexchangeHave strategic advantages.

Additionally, we are actively expanding the platform’s applications and functionality across more markets and currencies to meet the ever-expanding needs of the DeFi ecosystem.

To be solved挑战之一是我们对集中exchange价格Oracleof dependence.The upcoming upgrade aims to mitigate this problem by improving the pricing accuracy system, which is crucial for accurately trading derivatives.

In addition, the growing competition in the derivatives space requires us to continuously innovate in the products we offer. We also place great emphasis on building a stable and trustworthy platform, asSafetyIt is critical for us to ensure and maintain user trust through reliable and efficient market operations.

These efforts demonstrate our proactive approach to expanding our product offerings and enhancing platform capabilities while addressing important challenges in the DeFi derivatives space to maintain our leading position in this rapidly evolving market.

coderworld: Last year, the dYdX chain was officially launched, and we have also seen improvements in the performance and data of the dYdX platform. It is very rare for a dApp to have its own chain, including when you announced your departure from the Ethereum ecosystem, you also encountered some opposition from the community. Can you share the thoughts behind this decision, such as why you were so determined, what pain points you saw at the time, and what future prospects you had?

Charles d'Haussy:

The decision to launch the dYdX chain was made in order toProvide the best service to users, not to anyBlockchaintechnologySpecial loyalty.We are inherently chain-neutral because we believe that a good engineer or product manager should always prioritize user needs over technical limitations.

Leaving Ethereum allows us to control the entire technology stack.This allows us to make the necessary adjustments for optimal performance. This is critical because when operating on Ethereum, our operations are subject to highXiaobai NavigationMoving to our own chain is also about reducing reliance on Ethereum infrastructure, which may be limited due to its technical and scalability challenges.

Previously, ourTokenMainly governance in the Ethereum ecosystemTokenNow, on our own chain, it has taken on more practical functions, greatly enhancing the value we provide to users.This transition is critical because it allows us to freely innovate and implement capabilities that were previously limited by existing blockchain infrastructure.

In summary, the decision to create the dYdX chain is to take control of our destiny in the DeFi space and ensure that we can provide better and more scalable services. This will enable us to better respond to market demands and technological advances, stand out in the highly competitive DeFi space, and build a stronger ecosystem for users.

coderworld: Recently, you officially announced LP Vaults, which should be an important update. Can you introduce this update? What impact will it have on the dYdX ecosystem?

Charles d'Haussy:

With regard to the recently announced LP Vaults, this update represents a significant step forward for our platform.LP Vaults are designed to solve the liquidity issues that often hinder the growth and efficiency of trading platforms.Traditionally, our trading volume of approximately 80% has been dominated by Bitcoin and Ethereum, which has somewhat limited our ability to expand into a wider range of assets.

However, by introducingLP Vaults, we are now able to bring a more diverse product offering, including various memecoins.This is not just about increasing the number of tradable assets, but also about enhancing overall liquidity, which is key to maintaining a healthy trading environment. Insufficient liquidity can lead to high slippage and price instability, which is bad for traders and the entire ecosystem.

LP Vaults will enable us to better manage and increase liquidity, especially for new or less commonly traded assets. This will attract a broader user base and provide more trading opportunities, thereby enhancing the vitality and resiliency of the dYdX ecosystem.

existDeFiIn this field, trust is crucial.While innovation is important, it is not the only determinant of success. Trust is equally important. Our users need to feel that trading on our platform isSafetyAnd reliable. By improving liquidity through innovations such as LP Vaults, we not only expand our capabilities, but also strengthen users' trust in our platform. This combination of innovation and trust is critical to the long-term success and stability of DeFi.

More competition, more innovation, more users

coderworld: The derivatives market is a very crowded field, and many projects are looking for their own ways to attract new users or expand their narratives, such as Hyperliquid, Vertex, etc. How do you view the relationship with other permanent DEXs and how to maintain a competitive advantage?

Charles d'Haussy:

Regarding our position in the crowded derivatives market and in relation to other perpetual DEXs such as Hyperliquid and Vertex, it is important to understand our unique strategy. The derivatives market is indeed highly competitive,But at dYdX, we focus heavily on defining and understanding our user base.This clear definition of our target audience allows us to more effectively tailor our services and products to their specific needs.

同时，我们对去中心化金融领域的竞争持欢迎态度，因为竞争推动了创新，并使整个生态系统受益——更多的Token、更多的用户和更大的交易量。

also,Excellent liquidity is the cornerstone of our strategy.Better liquidity leads to better price discovery and lower slippage, making our platform more attractive for serious trading activities. We ensure that our products are not only diverse, but also highly liquid, which is crucial for traders who need a reliable and efficient trading environment.

In summary, we have successfully maintained a competitive advantage in the derivatives market by clearly defining our audience, providing superior products and services, and ensuring strong liquidity. This focused strategy not only differentiates us from our competitors, but also enhances user trust and loyalty, solidifying our position in the market.

coderworld: For many users, the more trading pairs a trading platform lists and the faster the transaction speed, the more direct their judgment of the platform's quality. From the perspective of dYdX, what aspects do you think should be focused on and improved in terms of derivatives trading?

Charles d'Haussy:

From a dYdX perspective, when evaluating where we should focus our development and improvement efforts in derivatives trading, there are a few key areas that we prioritize. While it is true that many users measure the quality of an exchange by the number of trading pairs listed and the speed of transactions,But dYdX believes that the core elements that drive the success of derivatives trading platforms are not just these.

First and foremost, our API plays a critical role in the functionality of our platform.We are constantly working on improving our API as it not only enhances the user experience, but also ensures that our platform can be seamlessly integrated with a variety of trading tools and systems. This integration capability is critical to attracting institutional traders and complex trading strategies, which contribute significantly to the trading volume and liquidity of our platform.

Second, we are exploring the potential of prediction markets."These markets, which allow users to speculate on future events, represent an exciting avenue for growth. Not only do they enrich the trading options on our platform, they also attract a wider audience, thereby increasing engagement and trading volume."

It is important to highlight that approximately 80% of our trading volume comes from derivatives trading. This high percentage emphasizes the significant impact of derivatives on spot price determination. Therefore, our development work is aimed at enhancing the functionality and features of our derivatives products. By doing so, we ensure that our platform not only meets the needs of current users, but also anticipates future market needs.

In summary, while the number of trading pairs and transaction speed are important, on dYdX,We focus on strengthening our API, exploring innovative market types such as prediction markets, and continuously improving our derivatives trading capabilities to better serve our users and maintain a competitive advantage in the market.

coderworld: When dYdX Trading announced the development of the dYdX chain, it mentioned the desire to achieve greater decentralization. However, many projects are talking about decentralization. In your opinion, how should "how to achieve true decentralization?" be evaluated, and where is the decentralization of dYdX reflected?

Charles d'Haussy:

When dYdX Trading announced the development of dYdX Chain,The goal is obviously to achieve greater decentralization,This is a term frequently discussed among many blockchain projects. However, achieving true decentralization is more than just talk; it involves practical and concrete steps to ensure that the system operates in a truly decentralized manner.

in my opinion,True decentralization can be achieved by distributing control and decision-making processes within the platform to a broad and diverse group of stakeholders, rather than concentrating them in the hands of a few.DAO(Decentralized Autonomous Organization) Decentralized governance also includes ensuring that infrastructure and operations are distributed across a decentralized network of nodes.

Users often struggle with the evaluation of decentralization because it is not always clear what criteria should be considered, or they may not understand the technical aspects that represent decentralization. At dYdX, we are committed to making this evaluation process more transparent. This transparency is reflected in our governance management, where token holders have significant input and control over the direction of the protocol.

Additionally, by moving to our own chain, we take a major step towards decentralizing our operational infrastructure, which previously relied on more centralized components.

In order to provide a truly decentralized platform, we strive to distribute operational and governance aspects across a broad network. This approach ensures that no single party has undue control over the system, in line with the fundamental principles of blockchain and DeFi. Therefore, the decentralization of dYdX is not just about reducing reliance on central entities, but also about enhancing user trust andSafety, providing everyone with equal opportunities to participate in and influence the ecosystem.

coderworld: Recently, Uniswap’s decision to enable fee conversion has attracted widespread attention. However, dYdX has already shared the 100% protocol fee with its users, enabling $DYDXpledgeWhat do you think about the situation of Uniswap and what is the difference between $DYDX and other platform tokens?

Charles d'Haussy:

Regarding Uniswap’s decision to enable fee switching, I would like to point out that at dYdX, we have already done this through our partnership with $DYDX.pledgeThis model was created by sharing the agreement fee of 100%.This makes our stakers almost shareholders, directly benefiting from the fees generated by the platform.

When you stake $DYDX, you will receive USDC generated by transaction fees paid by users. This model rewards our stakers in real time based on the platform's activity and trading volume fluctuations.

This direct profit sharing model not only aligns the interests of our stakers closely with the success of the protocol, it also sets us apart from other platforms. Rather than simply receiving more tokens, our stakers actually participate in the economic outcomes of the platform, making our model significantly different and, I believe, more beneficial to our community. This system makes $DYDX not just a utility or governance token, but a means of direct economic participation in the success of the platform.

Focus is crucial

coderworld: As a leading perpetual product, regulation is often a key aspect. How does dYdX deal with the complex DeFi regulatory environment and what steps does it take to comply with global regulations? What do you think about the future regulation of DeFi and what impact may it have on platforms such as dYdX?

Charles d'Haussy:

要运营像 dYdX 这样领先的永久性产品，驾驭复杂的 DeFi 监管环境确实是一个至关重要的方面。在我看来，当务之急是要明白，监管不仅仅是约束，而是要确保安全、透明和信任。At dYdX, we emphasize that we are more transparent than centralized exchanges because everything is verifiable on-chain. This transparency is not only the basis for user trust, but also the basis for regulatory compliance.

We actively engage in dialogue with regulators to help build recognitionBlockchain TechnologyLegal framework for unique properties.This includes demonstrating how our decentralized setup inherently offers different consumer protections than the traditional financial system. Our platform operates on blockchain technology, which inherently offers transparency and security, and we use this as a core argument to push for a more tailored regulatory approach.

forDeFiThe regulation going forward, I think it will be much more nuanced, recognizing the significant differences between decentralized and centralized services.This evolution could be positive for platforms like dYdX as it would remove the ambiguity that currently exists and could lead to wider adoption and trust.

Innovations such as blockchain’s inherent transparency and trustless technology that validates transactions and operations without a central authority are key. These innovations not only challenge traditional models, but also provide a blueprint for how DeFi can be integrated with the global financial system while enhancing user protection and system integrity.

Looking ahead, I expect regulation will begin to reflect the unique capabilities and advantages of DeFi platforms.This could greatly benefit dYdX as we continue to prioritize compliance and user safety in our operations.

coderworld: This year, dYdX seems to be investing more in the Chinese-speaking market, such as establishing Chinese Twitter and community groups. What do you think of the Asian market and its users?

Charles d'Haussy:

We have really put a lot of effort into the Chinese-speaking market this year. Recognizing the importance of the Asian market and its users, we have actively engaged with this audience through initiatives such as establishing Chinese Twitter and community groups.Our strategy is based on the belief that Asia will play a key role in the global expansion of DeFi, and specifically for dYdX.

In my opinion, the Asian market is very dynamic and developing rapidly.Users here are very tech-savvy and willing to embrace new financial technologies, making it a key region for dYdX. To better serve the needs of these users, we are exploring major partnerships with Asian exchanges and enhancing our platform with more mobile experience options tailored for Chinese users.This focus on the mobile experience is critical, as mobile access is the primary way many Asian users use technology on a daily basis.

also,Empowering users to be free is at the core of our mission.We believe in providing tools and resources that allow users to interact with our platform in the way that works best for them, without unnecessary restrictions or complexity. This approach not only respects user autonomy, but is also consistent with our core principles of decentralization and open access. Our emphasis on the Asian market is both a strategic and user-centric decision, designed to incorporate their preferences and needs into the evolution of our platform.

coderworld: Finally, as one of the most senior projects in the Web3 space, dYdX is considered one of the most successful projects. Managing the success of a project is actually very difficult. Can you share some experiences in the entrepreneurial process that may be useful to future builders?

Charles d'Haussy:

Managing a successful project like dYdX, especially in the evolving Web3 space, is indeed a challenging but also rewarding journey. Based on my experience, there are several key insights that may be very valuable to future builders in this space.

First, the importance of focus cannot be underestimated.In the world of Web3, where possibilities seem endless and new ideas emerge every day, it is critical to maintain a strong focus on your core product and value proposition. For dYdX, this means honing our strengths in the derivatives market and continually improving our product, rather than spreading our efforts across too many features or markets. I also want to warn everyone against chasing incentives and moving to other blockchain platforms. Maintaining a commitment to your core mission and goals is key to long-term success.

Second, resilience is key.The entrepreneurial journey, especially in a new and untested market like Web3, is fraught with uncertainty and challenges. There have been countless times when the direction was unclear and external conditions were far from ideal. However, persistence and commitment to the vision have been at the core of successfully navigating these challenges. I want to emphasize the importance of closely managing cash flow and burn rate. At dYdX, we maintain enough cash reserves for 18 months. This has been critical to maintaining operations amidst the ups and downs of the blockchain industry.

Additionally, building strong teams and fostering a collaborative culture is critical.Web3 projects require a mix of skills, not only in blockchain technology, but also in finance, regulation, user experience, etc. It is important to attract, develop, and retain talent that not only has exceptional skills but also shares the vision of decentralization and innovation that dYdX embodies.

Finally, engagement with the community is critical.The decentralized nature of Web3 means that the community’s input is invaluable. Listening, engaging, and sometimes leading the community helps us refine our products and become stronger. It’s also a way to ensure we stay relevant and truly meet the needs of our users.

These lessons learned from the dYdX journey apply not only to blockchain projects, but to any entrepreneurial endeavor in a technology-driven field. The combination of focus, resilience, teamwork, and community engagement forms a solid foundation for success in the dynamic Web3 environment.

The article comes from the Internet:Dialogue with dYdX Foundation CEO: I bought my first BTC through Taobao. Trust is crucial to dYdX

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