dYdX exchange will launch a prediction marketplace with open-ended futures

What’s new? The team at the leading decentralized crypto exchange (DEX) dYdX, which operates on its own eponymous network in the Cosmos ecosystem, will launch a prediction marketplace with open-ended futures. Users will be able to place leveraged bets. Charles d’Haussy, CEO of the dYdX Foundation, said the DeFi sector needs to offer something special to differentiate itself from centralized marketplaces.

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What else is known? According to the senior executive, the prediction market can provide DeFi with a unique opportunity to attract additional attention. He added that dYdX is also exploring foreign exchange and index markets.

Prediction markets allow investors to bet on the outcome of political and sporting events, asset prices, and even the weather on a particular date. Perpetual contracts are derivative contracts with no expiration date, allowing market participants to hold positions for as long as they see fit.

The pioneer in the crypto market in the prediction segment was Augur, a platform launched in 2018 on the Ethereum blockchain. It failed to gain popularity due to insufficient liquidity and high fees on the blockchain.

The current leader is Polymarket. In August, the trading volume on the platform exceeded $450 million, and the volume of bets on the outcome of the US presidential election alone has already approached $1 billion.

The upcoming launch of dYdX on prediction markets is part of the dYdX Unlimited upgrade, which is expected later this year and is positioned as the most significant for the project. It will introduce the ability to list markets for all users, as well as the MegaVault core liquidity pool.

When entering a new market, a user will be required to make a deposit, the amount of which will be determined by the community, in USDC stablecoins into the MegaVault pool. This deposit will be used to quote orders, providing instant liquidity in a specific market.

In April, dYdX allocated 20 million DYDX tokens valued at $60 million to be placed in the Stride liquid staking protocol to improve network security.

The total trading volume on dYdX of the current fourth and previous versions is $192,92 billion. The DYDX token is ranked 120th in the cryptocurrency rankings with a capitalization of $567 million and is trading at $0,8975, having added 3,4% overnight. The weekly increase was 0,7%, but the decline since the beginning of the year was 70%.