dYdX Chain, the leading decentralized derivatives trading protocol, has recently taken a significant step forward by launching trading rewards for validators and stakers. This development comes after the full trading launch of the protocol on its Cosmos-based Layer 1 platform.
Introducing these rewards marks a new chapter in the platform’s evolution, especially following a decisive governance vote that motioned this change.
A noteworthy shift occurred with the launch of dYdX version 4’s alpha mainnet on October 26, marking the platform’s move to a standalone Layer 1 on Cosmos.
This transition from Ethereum’s Layer 2 scaling solution StarkEx in version 3 represents a central strategic pivot.
The migration process for users from Ethereum involves the wethDYDX smart contract, facilitating the exchange of ethDYDX tokens for wethDYDX on Ethereum and DYDX, the native token on the dYdX Chain.
Over 437 million ethDYDX tokens are significantly bridged, and about 16.45 million DYDX are staked on the dYdX Chain.
The dYdX Chain, now operating on the Cosmos-based Layer 1 platform, has facilitated active trading across over 33 markets, offering up to 20x leverage.
Although staking rewards were available during this beta phase, trading rewards remained pending. However, validators and stakers have accumulated 100% of the protocol’s trading fees.
With the governance vote’s conclusion, trading rewards are now fully operational. Additionally, stakers will continue receiving rewards in both USDC and DYDX.
The protocol has witnessed substantial activity in just two weeks since the beta launch. This includes more than $1.86 million in total trades across approximately 14,000 transactions, a testament to the platform’s growing popularity and robust infrastructure managed by the dYdX Operations subDAO.
Initially, the full trading feature is available in four markets, including BTC/USD, ETH/USD, SOL/USD, and LINK/USD, with plans to expand to more markets shortly.
dYdX Chain: A New Era in Decentralized Derivatives Trading
A new incentive program, proposed by Chaos Labs and approved by the dYdX community, earmarks $20 million in DYDX tokens for early adopters of the dYdX Chain.
This six-month program aims to boost adoption and trading volume while implementing safeguards against abusive practices like wash trading. The distribution of these rewards will undergo community approval, ensuring a balanced and fair approach.
The trading protocol is a groundbreaking innovation in the decentralized derivatives trading space, offering a fully decentralized, off-chain order book and matching engine capable of scaling to orders of magnitude more throughput than any blockchain can support.
The dYdX Chain also leverages the interoperability and customizability of Cosmos, enabling cross-chain communication and governance. The dYdX Chain is poised to become a leading platform for advanced trading, empowering users with low fees, deep liquidity, and high leverage.
