dYdX Labs, the team behind a decentralized exchange (DEX) focused on perpetuals (perps), has unveiled a new platform, Arcus, on Robinhood Chain.
According to the announcement, Arcus will be separate from dYdX and its chain, but will charge zero fees while allowing traders a round-the-clock trading experience.
We built Arcus to reduce these barriers. Arcus gives traders 24/7 access to 95 tokenized stocks and perpetuals backed by Robinhood Chain’s deep liquidity.
Robinhood Crypto’s director of product management, Seong Seog Lee, also echoed the move as a way to democratize access to financial markets.
Robinhood has always believed that the financial system should work for everyone. Arcus is the natural extension of that mission into the onchain world.
The platform will begin with perps and stock trading and later on expand to pre-IPO offerings and allow tokenized stocks as collateral.
Worth pointing out that the update has been teased for the past five days. Traders have been front-running the announcement, pushing the DYDX token to nearly double.
dYdX dumps 45% after Arcus debut
But the final update turned out to be a ‘sell-the-news’ event as earlier projected by AMBCrypto. As of writing, DYDX, the native token of dYdX, has sharply dropped by 45% and effectively erased the gains made ahead of the Arcus announcement.
Worth pointing out, the Arcus update has no link or direct impact on the native token. In a statement, the dYdX Foundation said,
DYDX is, and remains, the governance and staking token of dYdX Chain. Its mechanics, supply, and operational characteristics remain unchanged.
That said, the Arcus update saw the token surge to record positive Weighted Sentiment. However, the Supply on Exchanges spiked slightly while the amount of Tokens Outside of Exchanges remained flat (blue line).
This meant that despite the update being positive, it didn’t lead to significant spot demand for the DYDX token, as underscored by the flat blue line. In other words, traders didn’t jump to accumulate the token after the update.
Thus, it was not a surprise, as the announcement had been front-run in the past few days. That said, the 200-day Moving Average (MA, blue line on price charts) and the trendline support could be potential price floors.
If so, the massive dump could be a buying opportunity only if the broader market sentiment also improves.
Final Summary
- The team behind dYdX has unveiled a similar DEX, Arcus, that will be based on the Robinhood Chain
- According to the project team, Arcus would help democratize access to stock markets, but DYDX traders turned bearish.
