Crypto derivatives trading platform dYdX has officially launched an app through Apple’s iOS store, joining a selection of decentralized finance (DeFi) protocols that have built apps for smartphone adoption.
According to a May 10 announcement, dYdX’s app is now get ready For use, the project noted that more than 200,000 people had signed up for the beta version before the full launch.
The app offers gas-free deposits and transactions and will offer the same functionality as the web version.
“The app offers the same functionality and unparalleled product experience found on our main trading website, with the added convenience of being able to trade on your iPhone,” said dYdX.
We’re happy to announce that our iOS app is now available to the public! This makes dYdX one of the first DeFi protocols to launch a dedicated mobile app and brings our user experience more on par with centralized exchanges.access https://t.co/YMo3oz5Wz5 Download it! pic.twitter.com/4PE41avSvd
— dYdX (@dYdX) May 10, 2022
Platforms based on Ethereum Layer 2 mainly provide derivatives such as perpetual contracts, but there are also Plans to launch synthetic materialsspot and margin trading as part of its commitment in late April to achieve “100% decentralization” by the end of 2022.
The app also supports a long list of well-known crypto wallets such as MetaMask, Coinbase Wallet, Trust Wallet app, and Huobi Wallet, to name a few.
Lack of DeFi applications
There are a number of crypto, digital wallet and NFT companies that have launched mobile apps, but it seems that the DeFi sector has yet to take full advantage of this space.
Take the Australian IOS store as an example [where the author of this piece is based]which lists a small sample of DeFi projects such as Snowball, Argent and Cake DeFi, and dYdX.
While regulatory compliance could be an issue for DeFi platforms in this case, it could also be that Apple’s strict policies are preventing projects from launching in stores.
For example, Apple prohibits the inclusion of payment tracks beyond what the company offers, while it also charges a flat fee 30% commission on in-app purchases Digital goods and services.
Coinbase CEO Brian Armstrong in late 2020 highlighted another reason that could lead to an exit from the DeFi industry. At the time, he noted that Coinbase cannot offer or link to DeFi services through its app because Apple doesn’t allow exchanges to offer crypto “trading in non-embedded software within the app.”
Therefore, Coinbase and other companies are only allowed to provide such services through external links from the website, resulting in limited functionality of the app compared to the website.
Neither dYdX’s app nor website is available to U.S. citizens, which may also be due to regulatory compliance issues (or concerns) surrounding DeFi derivatives.
In the US, there appears to be a grey area surrounding DeFi derivatives, with former Commodity Futures Trading Commission (CFTC) Commissioner Dan M. Berkovitz emphasized last June that DeFi platforms will likely need to be registered and regulated under the CFTC to offer derivatives or futures contracts.
“Not only do I think permissionless DeFi markets for derivatives are a bad idea, but I also don’t think they are legal under the CEA,” he said.