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.com
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