dYdX and Contract-fillable Liquidity

Tapping into 0x’s Networked Liquidity Pool

We are thrilled to see dYdX, a margin lending exchange, source liquidity from 0x via Radar Relay! dYdX is currently pulling liquidity for DAI/USDC, ETH/USDC, and plans to add more trading pairs in the future. This integration is powerful in that it leverages contract-fillable liquidity (CFL), which describes the ability for smart contracts to programmatically swap tokens by filling orders on decentralized exchanges.

DeFi projects consume liquidity from DEX networks to enable the exchange of assets within products ranging from decentralized lending services to leverage trading platforms. Even atomic arbitrage bots need consumable liquidity in order to trade effectively across exchange venues. Contract-fillable liquidity is the bedrock of the Open Finance space and is one of the most important functions enabled by smart contracts on permissionless blockchains. It opens the door for capital to frictionlessly flow between crypto protocols to allow for the creation of markets that couldn’t exist in the traditional financial system.

Source liquidity from 0x for your DeFi project here.

dYdX, a Case Study for CFL

dYdX is both a margin lending protocol and a user-facing decentralized exchange that creates leveraged short and long positions on Ethereum-based assets such as ETH, DAI, and USDC. Whenever a user wishes to open, close, increase or decrease their position(s), dYdX’s contract automatically finds the best token pair liquidity available on 0x and fills the order.