Software · head to head
Compound vs dYdX
The short version
- Each has a real cost: Compound compound is a decentralized, non-custodial protocol governed by COMP token holders rather than a company; interest rates on supplied and borrowed assets are set algorithmically by pool utilization rather than published as a price list, so there is no vendor pricing page to compare against; dYdX newer platform with smaller liquidity pools compared to centralized exchanges
- They diverge on capability: Compound covers Lending, dYdX covers Perpetual Contracts.
Where they differ
Only the attributes on which Compound and dYdX actually diverge.
Identical on both: starting price (Free), free tier (Yes), user rating (Not yet rated), category (Unknown), founded (2017).
What each one covers
Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.
Only in Compound
- Lending
- Borrowing
- cTokens
- COMP Token
- Ethereum
Only in dYdX
- Perpetual Contracts
- Cross Margin
- Portfolio Margin
- DYDX Token
- Cosmos SDK
Both cover
- Governance
- Web support
What people use each for
The jobs each tool is most often brought in to do.
Compound
- Decentralised finance (DeFi) lending and borrowing protocol on Ethereumnot dYdX
- Cryptocurrency collateral management for USDC borrowingnot dYdX
- Interest earning through crypto asset supplynot dYdX
- Algorithmic interest rate determination based on supply and demandnot dYdX
dYdX
- Definot Compound
- Dexnot Compound
- Derivativesnot Compound
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
Compound
- Compound is a decentralized, non-custodial protocol governed by COMP token holders rather than a company; interest rates on supplied and borrowed assets are set algorithmically by pool utilization rather than published as a price list, so there is no vendor pricing page to compare against
dYdX
- Newer platform with smaller liquidity pools compared to centralized exchanges
- Requires cryptocurrency wallet for trading, adding friction for new users
- Limited fiat on/off ramps compared to centralized alternatives like Coinbase
Pricing, plan by plan
Compound
FreeNo published plan breakdown. See the Compound review.
dYdX
Free- FreeFree
- Perpetual trading
- Governance
- Staking
Which should you pick?
Choose Compound if
- You need lending.
- You want to start without paying.
- You work on Ethereum.
- You also want borrowing.
Choose dYdX if
- You need perpetual contracts.
- You want to start without paying.
- You also want cross margin.
Questions people ask
- Is Compound or dYdX better?
- Neither clearly leads. Compound starts at Free and dYdX at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Compound or dYdX?
- Compound starts at Free and dYdX at Free.
- Does Compound or dYdX run on more platforms?
- Compound runs on Ethereum. dYdX runs on Web.
- Can I use Compound for free?
- Both have a free tier, so you can try either at no cost before committing.
- What is Compound best used for?
- Compound is most often used for decentralised finance (defi) lending and borrowing protocol on ethereum, cryptocurrency collateral management for usdc borrowing, interest earning through crypto asset supply, algorithmic interest rate determination based on supply and demand. Of those, decentralised finance (defi) lending and borrowing protocol on ethereum and cryptocurrency collateral management for usdc borrowing are not what dYdX is typically brought in for.
- What can Compound do that dYdX cannot?
- Compound covers Lending, Borrowing, cTokens, COMP Token. dYdX covers Perpetual Contracts, Cross Margin, Portfolio Margin, DYDX Token. Both handle Governance, Web support.
Answered from the vendors’ own pages
dYdX: What type of trading does dYdX specialize in?
dYdX is a decentralized platform for perpetuals and margin trading, allowing professional traders to trade crypto derivatives without expiry dates. Built on ZK-rollup technology, it enables trading 143+ cryptocurrencies with leverage up to 50x on selected contracts.
SourcedYdX: How does dYdX maintain decentralization?
dYdX governance is fully community-driven, meaning token holders decide on protocol upgrades, fee structures, and risk parameters. The platform distributes 100% of its trading fees to stakers.
SourcedYdX: What are dYdX's gas fee advantages?
Built on StarkWare's ZK-rollup technology, dYdX enables trading with near-zero gas fees while users maintain full custody of their assets.
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