How dYdX Allows You to Take a Short Position in One Token - Ep.86

Antonio Juliano, founder of dYdX, explains how this protocol for derivatives will enable you to take a short position in a single token, why they are starting with protocols shorting and margin lending and how these protocols work from how shorting and margin lending work today. The former employee of Coinbase also discusses how the protocol determines the prices of the assets involved, how low liquidity affects the trading of the derivatives and who dYdX's users will be. He also talks about how the company, which has raised money from Andreessen Horowitz, Polychain Capital and others, plans to make money despite not currently having a token. Plus, we discuss dYdX's plans to create protocols for derivatives that are not fully collateralized and the risks that come with that.

Thank you to our sponsor!

Blockdaemon: http://blockdaemon.com/unchained/

Interested in sponsoring Unchained or Unconfirmed? Reach out to Raelene at laurashinpodcast@gmail.com.

Episode links:

dYdX: https://dydx.exchange

Antonio Juliano: https://twitter.com/antoniomjuliano

dYdX white paper: https://whitepaper.dydx.exchange

Expo: https://www.expotrading.com

https://medium.com/dydxderivatives/introducing-expo-ffe74a328f85

Investments in dYdX: https://techcrunch.com/2018/08/03/short-ethereum/

Unchained episode about decentralized exchange protocol 0x: http://unchainedpodcast.co/will-warren-of-0x-on-why-decentralized-exchanges-are-the-future

Unchained episode about decentralized debt protocol Dharma: http://unchainedpodcast.co/nadav-hollander-on-how-dharma-could-create-new-forms-of-debt-ep80

Unchained episode about decentralized money market protocol Compound: http://unchainedpodcast.co/how-youll-earn-interest-on-your-crypto-with-compound-ep82

Unchained interview with Josh Stein of Harbor: http://unchainedpodcast.co/harbor-and-trusttoken-on-why-they-dont-mind-being-unsexy-ep77

Unchained interview with CryptoKitties: http://unchainedpodcast.co/what-makes-a-cryptokitty-worth-140000-ep75