Decentralized exchange dYdX has announced a new fiat on-ramp this week, utilizing a partnership with crypto ramping solutions firm Banxa. dYdX has primarily focused on exchange-rooted products for consumers, with recent expansion into new verticals.
Let’s take a look at this new announcement from the exchange, and considerations around on and off ramps in crypto.
Ramp It Up
For longtime crypto loyalists, there is often a ‘push and pull’ feeling with on-ramps. Part of the knowledge and experience gained within crypto ecosystems comes through raw exploration and personal experience engaging with blockchain transactions – something that ramps essentially cut out of the equation for users (with good intentions, of course). However, most crypto users can understand that ramps make onboarding new users much easier – and can just hope that a streamlined introduction to an ecosystem will help resonate with users to keep them around.
Early this week, dYdX released a blog post with corresponding social media posts announcing the platform’s new fiat on-ramp, courtesy of the platform’s partnership with Banxa. Banxa’s ramp capabilities will allow dYdX users to purchase USDC via credit card, bank transfer and more. dYdX carries a present total value locked (TVL) of just over $350M, according to DefiLlama data.
dYdX has seen volatility in its market cap over recent months, and will turn to another added resource, a fiat on-ramp courtesy of Banxa, to help spur future growth. | Source: MARKETCAP: DYDX on TradingView.com
Status Check
dYdX is in a bit of a unique position in that it’s major market ubiquitousness lies in it’s offering of perpetual crypto contracts; however, these contracts are of course geared for more savvy crypto investors, of which this latest ramp announcement will be less impactful. Nonetheless, it’s still a win for the platform, who struggled with potential KYC implementation methods that received immense pushback from users.
Nonethless, the move is undoubtedly a big win for both parties. In the case of dYdX, their ecosystem already boasts a large utilization rate of USDC – as the platform has migrated to Cosmos (from Ethereum) and primarily positions its swaps and futures offerings as USDC ties. Banxa, meanwhile, secures another major partner among a growing list who call upon the firm for ramp offerings.
Featured image from Pixabay, Charts from TradingView.comThe writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.
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