dYdX is aimed to be a more ‘pro’ version for margin trading. It enables the creation of individual short and leveraged positions using liquidity from third party lenders and decentralized exchange liquidity. This is distinct from expo, which offers the opportunity to enter into a tokenized margin position. There’s additional simplicity with expo in some ways, but it offers less flexibility around the specific leverage a trader can enter into and less transparency into the market.
dYdX also offers simple lending and collateralized borrowing and lending whereas expo does not.
Short Tokens and Leveraged Tokens
There are currently no short or leveraged tokens on dYdX.
For a trader who is trying to create an individual position, it makes less sense to do so via a margin token. Margin tokens have less flexibility around what leverage you enter into, how long you can hold the position for and how close you are from margin call / liquidation when you enter the position.