dYdX Acquires Pocket Protector for $1 Billion Trading Volume Growth

dYdX, a prominent decentralized exchange, has acquired Pocket Protector, a Telegram-native trading app, to expand its product offerings and accelerate growth. The acquisition, announced by dYdX founder Antonio Juliano, includes the integration of Pocket Protector’s team, including co-founders Eddie Zhang and Kaiser Kinbote, who will assume the roles of President and Head of Growth, respectively.

Pocket Protector, which has seen rapid growth since its launch, attracted 50,000 users and achieved $1 billion in annualized trading volume within a year. The app’s core features, such as Telegram-based perpetual and spot trading, will be incorporated into dYdX’s main platform. This move is part of dYdX’s strategy to transition from infrastructure development to user-facing expansion, aiming to deliver exceptional user experiences and build the best exchange in the crypto space.

The acquisition highlights the growing trend of messaging-native tools in the decentralized finance (DeFi) space, particularly in mobile-first and underbanked regions. These tools provide a frictionless gateway to DeFi, allowing users to access financial services without the need for desktop platforms. dYdX’s integration of Pocket Protector’s features into its main platform is a strategic move to capitalize on this trend and enhance user engagement.

dYdX is also focusing on hiring across research and engineering roles to support its product roadmap. The exchange aims to expand its product surface area and build a robust trading infrastructure that integrates social tools, which could become a key differentiator in retail market share. This is especially relevant in regions where messaging apps serve as primary financial access points.

The integration of social tools into core trading infrastructure could also address regulatory implications, such as jurisdictional challenges around financial communication, user verification, and cross-border compliance. Features like in-app alerts, shared strategies, and group trading discussions create embedded communities, increasing user engagement and reducing churn. This trend may extend beyond Telegram to other high-usage chat platforms, provided technical integration and local compliance frameworks align.