The governance token for the layer 2 protocol of the non-custodial decentralised cryptocurrency exchange DYDX (dYdX) is DYDX (dYdX). It facilitates layer 2 operation and allows traders, liquidity providers, and partners to participate in the community's defining of the protocol's future.

Token holders are given the ability to propose improvements to layer 2 of the dYdX, as well as the chance to profit from token staking and trading fee savings.
dYdX is an open-source platform featuring smart contract capability for lending, borrowing, and trading crypto assets. Although dYdX allows spot trading, it is primarily focused on derivatives and leverage trading.