Published on: May 18th, 2021 • Duration: 57 minutes
Ash Bennington, senior crypto editor for Real Vision, hosts Antonio Juliano, founder of dYdX, to discuss dYdX, decentralized exchanges (DEXs), regulations, risk management, and the future of the space. After becoming interested in the idea of blockchain as a whole computing paradigm via Ethereum rather than as a system for payments, investment, or store of value like the Bitcoin model, Juliano became invested in building a search engine for decentralized apps. With limited success, he became drawn to the advent of DEXs. To him, this idea seemed like the natural progression of decentralized finance, and Juliano surmised that the next level to the decentralized stack would be more advanced financial products including margin trading and derivatives, prompting the creation of dYdX. Filmed May 13th, 2021.
Most crypto exchanges have centralized operations—this creates opportunities for assets to being hackable, leading to hundreds of millions of dollars being stolen over the years. DEXs prevent this by allowing the user to retain custody and pull funds immediately if necessary. With dYdX, the DEX also solves for transparency which allows for the rules, past performance, and volatility of the exchange to be encoded into smart contracts, allowing for the system to "bootstrap trust". Juliano believes that with these systems, which are global in nature, can bypass traditional jurisdictions and will allow for users to easily and effectively trade at more advanced levels typically reserved for private banks and hedges.