dYdX is a fully decentralized trading perpetual exchange. Backed by some of the world's largest VCs such as a16z Crypto, they are quickly becoming the most advanced crypto-financial platform on Ethereum.
The Challenge: high volume x high fees
According to data from CNBC, more than one in five American adults (21%) have traded Crypto. With millions of new traders joining exchanges every year, one might expect that the user experience is on par to match the newfound growth. However, we know this is not always the case, which begs the question, what do new traders look for in an exchange?
In one word, fees or a lack thereof.
Thus, in 2021 with over 50,000 unique users and growing (fast) the dYdX team began fearing that traders were becoming increasingly burdened with gas fees when making deposits to their new trading account.
As one might expect, trading volume has climbed in parallel with the increase in unique depositors since October of 2021, with a cumulative total volume in excess of 653 billion, demonstrating sustained growth for dYdX moving into Q3, despite challenging market conditions.
When it comes to trading crypto, exchanges can be intimidating for those new to the industry. Pair the complexity of doing their first technical analysis with gas fees (I thought those were for my car?) on every deposit into their new account and they go running for the TradFi hills. Because of this, dYdX saw the potential for gas fees to become a major blocker to user growth and knew they had to act fast if they wanted to simplify their UX and retain new traders.
Solution: Gasless Deposits
For the team at dYdX, the solution was simple. Integrate our Gasless SDK and eliminate gas fees for new users who deposit at least $1000 $USDC on their first deposit (then at least $2000 $USDC for subsequent deposits).
For returning users, they can also deposit sans gas when they deposit at least $2000 $USDC in one transaction (limited to once every three days per user), thanks to the Gasless SDK.
In addition to deposits, dYdX users can also swap certain ERC20 assets directly for $USDC, for which dYdX will also cover the associated gas costs for eligible users.
“We have used Biconomy to offer our users gasless deposits. Historically, one of the greatest frictions for user onboarding has been the hurdle of getting users to pay their own gas costs to test out a platform. Biconomy has enabled us to lessen that friction”
— Corey Miller, Growth Lead, dYdX
User Gas Savings
The Future of Gasless Exchanges
As we continually advance into a multi-chain web, it’s evident that if we hope to increase and retain mass user adoption we must prioritize intuitive and low-cost user-experiences.
Additionally, it’s imperative that said experiences remain highly secure, so as to mitigate the associated cyberattacks that currently plague the Web3 landscape. These factors (security+UX) are of particular importance for exchange platforms as mainstream users are especially skeptical and intimidated by the idea of swapping their hard earned fiat for crypto assets under the umbrella of DeFi, and frankly who can blame them. Between overly complicated transactions, swaps, tech talk and hacks, asking our non-technically inclined parents or grandparents to invest in a yield farm is a tall order, to say the least.
Pair this with the fact that North America faces an increasingly aging population and it becomes clear that intuitive and simplistic user-experiences and albeit, technology in general, is no longer a nice-to-have, it’s essential.
For these reasons, we are hyper focused on abstracting away dApp complexities that have brought us to the current state of Web3, so we may continue to seamlessly bring in the next 1 billion users. Gasless is the first and giant step in that direction, for which we plan to integrate with thousands of dApps and exchanges.
Lower Gas Fees, Guaranteed
Our Gasless relayers continue to exceed expectations when utilized for exchanges and dApps. By saving gas fees for both end-users and developers, we’ve successfully created a truly frictionless user-experience, unlike anything else that’s available on the market, that’s proven to increase new user acquisition and create a seamless UX all while paying lower gas fees on behalf of users. Guaranteed.