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Creating a dYdX v4 API Key for Crypto Trading Bots

dYdX v4 is a decentralized finance (DeFi) exchange that offers advanced trading features, making it a preferred choice for many traders. This guide will help you configure your dYdX v4 API to work with Gunbot, enabling seamless automated trading on the dYdX platform. Whether you're using Gunbot or another crypto trading bot, following this guide will ensure that your bot is correctly set up and ready to trade.

Funding the Wallet​

Before creating your dYdX v4 protocol wallet, it's essential to ensure that your wallet is funded. Here's how you can do it:

  1. Connect Your Wallet: Open your preferred wallet and ensure it is properly connected to the dYdX platform.
  2. Navigate to Portfolio Overview: Go to the dYdX portfolio overview to access your account's financial summary.
  3. Deposit Funds: Click on the Deposit button located at the bottom left of the screen to fund your wallet. This step is crucial as it enables your trading activities on the platform.

Funding Wallet

Creating dYdX v4 Protocol Wallet​

After funding your wallet, the next step is to create the dYdX v4 protocol wallet, which will be essential for integrating with your crypto trading bot like Gunbot:

  1. Access the dYdX Platform: Make sure you're logged into the dYdX platform.
  2. Create Wallet: Click on the profile menu and select Create dYdX v4 Wallet. This will generate a new wallet specifically for trading on the dYdX platform.
  3. Copy the dYdX Chain Address: The dYdX Chain Address will serve as the API key that you will use in Gunbot to enable automated trading.

Creating dYdX Wallet

Retrieving API Credentials​

To configure Gunbot for dYdX v4, you'll need the API key (dYdX Chain Address) and the API secret (wallet's secret phrase). These credentials are vital for your crypto trading bot to function correctly:

  1. Export Secret Phrase: In the dYdX platform, navigate to the profile menu and click Export Secret Phrase. This is your wallet's recovery phrase and serves as the API secret.
  2. Acknowledge Risks: A warning message will appear. Confirm that you understand the risks and proceed to reveal the secret phrase.
  3. Copy the Secret Phrase: The secret phrase consists of 24 words. Copy this phrase carefully as it will be required for your Gunbot configuration.

Reveal Secret Phrase

Configuring Gunbot GUI​

With your dYdX API credentials ready, follow these steps to configure Gunbot, a top-tier crypto trading bot, for dYdX v4:

  1. Access Gunbot GUI: Open the Gunbot interface and go to the Manage API Slots section where you can manage different exchange connections.
  2. Select dYdX v4: Choose dYdX v4 from the list of supported exchanges.
  3. Enter API Key and Secret: Input the dYdX Chain Address as the API key, and the 24-word secret phrase as the API secret. This configuration allows Gunbot to interact with your dYdX v4 account securely.
  4. Adjust Settings: Configure trading parameters such as fees, delay, and rate limits according to your trading strategy.

Gunbot API Configuration

Verification and Final Steps​

  1. Save the Settings: Ensure all API configurations are saved in Gunbot.
  2. Add Trading Pair: Select a trading pair, such as USD-ETH, and apply your preferred trading strategy in Gunbot. Click 'Start Trading' to begin automated trading.
  3. Verify Integration: Go to the chart page in Gunbot and confirm that the candle data for your selected trading pair is updating correctly. Also, check that your account balances are correctly displayed in the top menu.

If you encounter any issues during the setup, refer to the troubleshooting section in the Gunbot documentation or reach out to support for assistance.

By following these steps, you'll successfully integrate your dYdX v4 account with Gunbot, enabling automated trading on the dYdX platform. This setup is perfect for those using Gunbot or other AI-driven crypto trading bots to enhance their trading strategies.