dYdX Acquires Pocket Protector for Social Trading Innovation

dYdX, a leading decentralized exchange, has made a significant strategic move by acquiring Pocket Protector, a startup known for its innovative social-first perpetuals trading platform. The acquisition, announced on July 18 by dYdX founder and CEO Antonio Juliano, brings the entire Pocket Protector team into dYdX's core operations. This includes co-founders Eddie Zhang and Kaiser Kinbote, who will take on the roles of President and Head of Growth, respectively, along with four engineers.

The acquisition, which closed quietly in the second quarter, is dYdX's first external buy and is part of an internal restructuring aimed at enhancing execution and accelerating product expansion. The terms of the deal were not disclosed, but Juliano confirmed that it was funded with a mix of cash and dYdX tokens. This move is seen as a strategic purchase of time, executional firepower, and a proven mentality that dYdX believes it needs to scale through a new competitive phase in decentralized trading.

Pocket Protector's team achieved remarkable success in a short period, creating a sticky, social trading experience that users wanted. Their Telegram-native app, which allowed traders to follow each other’s moves and share strategies in real time, amassed 50,000 users and topped $1 billion in annualized volume. This kind of viral traction is rare in the decentralized finance (DeFi) space, where liquidity often follows mercenary yield farmers rather than engaged communities.

The integration of Pocket Protector's team into dYdX speaks volumes about the decentralized exchange's priorities. Eddie Zhang, who led product at Meta’s Messenger before co-founding Pocket Protector, will step in as President, effectively becoming Juliano’s right hand on product execution. Kaiser Kinbote, a crypto-native growth expert, will oversee user acquisition and retention, areas where dYdX has historically lagged behind centralized rivals. The four engineers will embed directly into dYdX’s core development teams, suggesting their work won’t be siloed as a side project.

dYdX has already begun porting Pocket Protector’s Telegram bot functionality to its platform, a move that could make its perps market feel less like a spreadsheet and more like a trading floor. The real test will be whether the team’s social-first DNA can thrive inside a protocol that has spent years optimizing for decentralization and capital efficiency. If they succeed, dYdX won’t just be the biggest decentralized perps exchange; it might be the first one that traders actually enjoy using.

This acquisition underscores dYdX's commitment to staying at the forefront of the DeFi landscape by continuously innovating and adapting to market demands. By integrating Pocket Protector's technology and expertise, dYdX aims to offer a more engaging and interactive trading experience for users, potentially setting a new standard for social trading in the decentralized finance space.