Trading Rewards Now Live on dYdX Chain!
Following a governance vote, users can now earn from a $20M reward pool in $DYDX tokens.
$1.86M+ traded in 2 weeks across 4 main markets, with more to come as #dYdX transitions from #Ethereum to its own #Cosmos-based Layer 1.
Trade:… pic.twitter.com/7gs9zJVCdv
— Bo (@bo_opryshko) November 28, 2023
dYdX Chain, dubbed dYdX v4 and announced last year, is a standalone blockchain protocol built on the famous Cosmos software development kit (SDK) and the Tendermint proof-of-stake (PoS) consensus mechanism.
Having transitioned out of its beta stage, dYdX Chain users can now claim their trading fee rewards. 75.6% of community members staked over 7.7 million DYDX tokens to kickstart the distribution process.
Meanwhile, 24.4% of its members voted against this decision, and they staked 2.51 million of the exchange’s tokens to make their opposition heard.
As a crypto derivatives trading protocol, dYdX Chain allows users to engage in the buying and selling of digital assets in a permissionless manner. It also provides a sizable 20x in leverage.
Additionally, traders have access to 33 permissionless trading markets following the full-scale commencement of the platform on November 14.
The governance vote, which commenced on November 24 and ended on November 28, also covers the decisions of stakers and network validators.
The dYdX Chain community deposited up to 10 million DYDX tokens, and the online voting event had a 62.3% turnout success.
Validators and stakers are scheduled to receive rewards in the form of the USDC stablecoin and the native DYDX tokens.
Six-Month Incentive Program Approved
Since its beta mainnet launch on November 14, 2023, dYdX Chain has recorded over 14,000 transactions totaling $1.4 million. However, this figure is relatively conservative, given the limited availability of derivatives trading pairs for investors.
Presently, traders can only trade BTC/USD, ETH/USD, SOL/USD, and LINK/USD pairs, with the development team actively working to broaden the market scope and attract a more diverse user base.
The dYdX community voted for the passage of a six-month incentive program following a snapshot proposal by Chaos Lab.
The incentive program is geared towards boosting the derivatives trading platform’s trading activities in terms of volume and also to draw traders to the dYdX Chain.
In terms of financial output, the program has earmarked $20 million payable in DYDX tokens from the dYdX Chain Community Treasury.
Providing a reason behind this program, the proposal aims to recognize early adopters of the dYdX v4 platform to raise much-needed liquidity and boost platform traffic.
Moreover, given the growing competition from other permissionless trading hubs, the incentive program is a means of marketing the derivative protocol to the wider Web3 ecosystem.
To address concerns related to wash trading, the program will implement measures to detect and deter such activities on the dYdX Chain.
There will also be a transparent risk and analytics portal that will allow community members to effortlessly verify the activities of all users receiving rewards.
To participate in this reward scheme, users are required to trade, stake, deposit, and participate in governance activities.
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