dr. mia von steinkirch, phd 0521a5835a
Update dydx.md
2023-02-09 19:39:39 -08:00

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## dydx
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### tl; dr
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* founded in 2017, dydx is the most popular dex for trading perps and utilizes a central limit orderbook model (rather amm).
* the oracle price is an aggregate price calculated using on-chain price oracles. collateralization and liquidations on dydx are determined using the oracle prices of each asset.
* the index price is an aggregate price based on price data from multiple exchanges and is used to trigger stop orders.
* the mid-market price is determined by the orderbook as tge midpoint or average between the lowest ask (sell price) and the highest bid (buy price).
* funding rate is the fee paid between longs and shorts for each perpetual market. longs pay shorts if the funding rate is positive and vice versa.
* it on starkware's L2 (migrated from ethereum in 2021) and soon moving to their own standalone cosmos chain (dydx v4).
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### resources