I’m a Bitcoin OG and very confused how Defi works exactly? - page 2.

Edwardard

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Quote from: adaseb on December 15, 2022, 01:39:51 AM

However after I connect with dydx. How do I keep it secure from there? Say someone gains access to my PC and it’s logged into dydx, can’t they just withdraw to their address? Doesn’t seem to be any 2fa for dydx. I am confused about this part.

Dydx is a non-custodial exchange, hence here your keys are your only 2fa or whatever. If you connect it through public computers, they can have access to your keys and withdraw funds from your metamask wallet (not dydx, since dydx is not a wallet, its a third party dapp interacting with your wallet). So always use a safe laptop/phone while importing your keys and you should be fine.

Btw, you shouldnt use public computers for centralized exchanges as well (even if 2fa is enabled). Defi or non-defi everything can be hacked if you are not serious enough with your own actions.

adaseb

legendary

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So in terms of security. I can use a hardware wallet such as ledger with my Metamask. So that way my seed and wallet.dat (for Metamask) is not on online computer.

However after I connect with dydx. How do I keep it secure from there? Say someone gains access to my PC and it’s logged into dydx, can’t they just withdraw to their address? Doesn’t seem to be any 2fa for dydx. I am confused about this part.

Edwardard

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Quote from: adaseb on December 14, 2022, 01:18:33 AM

I went to uniswap to check the spreads and it doesn’t load any order book like it does for dydx or any derivative site such as Bybit. Is there any way I can check the spreads and order books for Uniswap?

No, you can't. Uniswap is an automated liquidity protocol / market maker. Pricing is automatic, based on the x∗y=k market making formula which automatically adjusts prices based off the relative sizes of the two reserves (ETH and the associated ERC-20 token) and the size of the incoming trade.
Unlike uniswap, dydx doesnt make use of automated market maker (AMM). Instead, the platform utilizes a traditional orderbook + matching model to meet your requirements.

Quote from: adaseb on December 14, 2022, 01:18:33 AM

So why doesn’t uniswap do what dydx does where it uses layer2 and make it gasless?

There is a successfull proposal made for this already since october 2022. Not sure they've depolyed already on zksync or maybe very close (not following them too much).

adaseb

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I went to uniswap to check the spreads and it doesn’t load any order book like it does for dydx or any derivative site such as Bybit. Is there any way I can check the spreads and order books for Uniswap?

Looking at etherscan gas fees currently it’s like $3 for a trade. So this is good if you are trading mid/large amounts however if you want to trade small then the gas fees will add up. So why doesn’t uniswap do what dydx does where it uses layer2 and make it gasless? With the trading fees, spreads, the gas fees will add up if you are trying to day trade.

jackg

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https://bit.ly/387FXHi lightning theory

1. You can send tokens to cold storage once you have them but I don't think you can interact with these sites while having your funds in cold storage. You can use hardware though too and that's normally advisable (I don't think you're able to use multisig either).

2. One thing I can think of is that dYdX has leverage while uniswap doesn't which could be one thing changing the volumes (ie one quoting actual values on spot and one quoting volumes on leverage).

3. You can use side chains for lower fees if the token is on there and what you want to do is on there. You can save on trades too but you don't save much. Dydx also used to pay your loading fee when I last used them you aren't holding your funds if they're stored in Dydx, I don't know how they're stored but if you're putting a lot in there I suggest you try to find out.

4. You probably can, from what was mentioned in the above response dydx is compatible with wallet connect which should be compatible with mew (just from a quick search).

Edwardard

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Quote from: adaseb on December 13, 2022, 10:57:19 PM

1) I need to use Metamask? Any way to use it with cold storage?

You always need a connect your wallet online to interact with any Defi protocol.

Quote from: adaseb on December 13, 2022, 10:57:19 PM

2) I looked at Defi volumes. It says Uniswap is largest with >1B in volume and then Curve. But then I looked at dydx and it also has > 1B in trading volume. However it’s not ranked as #1 or #2. So what is the difference between dydx and uniswap?

On coinmarketcap's dex page, dydx is listed as no. 2 with volumes slightly lower than uniswap. However, we dont have much data on coingecko.

Quote from: adaseb on December 13, 2022, 10:57:19 PM

3) If you trade a lot, what can you do to reduce gas fees? I heard that dydx is gas less because it’s layer2. Is uniswap also gasless? Instead of using ETH network can I use Solana, BSC, or some other chain for lower fees?

You cant do much about gas fees, just avoid buying/selling your coin when the network is highly congested. Check for live gas fee for swapping on various dexes on etherscan gastracker. Dydx being layer2 has advantage of no gas fee (good for the perp traders). However, uniswap is not gasless. You can use other networks if the dex supports them. For eg. use pancakeswap for bsc based coins.

Quote from: adaseb on December 13, 2022, 10:57:19 PM

4) Why can’t I use MyEtherWallet instead of Metamask? As I understand you transfer from Metamask to dydx, if so why can’t I transfer from MEW to dydx instead of using Metamask?

Currently, dydx supports MetaMask, Coinbase Wallet, Ledger, Trezor, Wallet Connect, imToken. MEW is not recommended.
Source: https://help.dydx.exchange/en/articles/3076178-which-wallets-are-supported

adaseb

legendary

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So with everything going on with CEX i am thinking of finally trying out DEX.

I am not new to crypto but I am very confused how all these Defi work exactly. So i have a few questions.

1) I need to use Metamask? Any way to use it with cold storage?

2) I looked at Defi volumes. It says Uniswap is largest with >1B in volume and then Curve. But then I looked at dydx and it also has > 1B in trading volume. However it’s not ranked as #1 or #2. So what is the difference between dydx and uniswap?

3) If you trade a lot, what can you do to reduce gas fees? I heard that dydx is gas less because it’s layer2. Is uniswap also gasless? Instead of using ETH network can I use Solana, BSC, or some other chain for lower fees?

4) Why can’t I use MyEtherWallet instead of Metamask? As I understand you transfer from Metamask to dydx, if so why can’t I transfer from MEW to dydx instead of using Metamask?

Thanks for all your help.

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