The dYdX Chain, now operating on Cosmos-based Layer 1, has unveiled a significant advancement by initiating trading rewards for validators and stakers, marking a pivotal moment in decentralized derivatives trading.
This recent development follows the full trading launch of the decentralized derivatives trading protocol and stems from a decisive governance vote that endorsed this transformative change.
Initiation of Trading Rewards Post Successful Beta Phase
Following its beta mainnet introduction on November 14, the dYdX Chain facilitated active trading across more than 33 markets, boasting leverages of up to 20x. While staking rewards were available during this beta phase, trading rewards had been pending.
However, validators and stakers have been earning 100% of the protocol’s trading fees. With the completion of the governance vote, trading rewards have now been activated.
Moreover, stakers will continue receiving rewards in both USDC and DYDX tokens. Notably, the platform has seen substantial activity within just two weeks since the beta launch, with over $1.86 million in total trades across approximately 14,000 transactions. This demonstrates the platform’s burgeoning popularity and robust infrastructure managed by the dYdX Operations subDAO.
Initially, full trading features are accessible in four markets: BTC/USD, ETH/USD, SOL/USD, and LINK/USD, with plans for further market expansions in the near future.
Transition from Ethereum to Cosmos Ecosystem
A significant transition occurred with the launch of dYdX version 4’s alpha mainnet on October 26. While signifying the platform’s migration to a standalone Layer 1 on Cosmos. This shift from Ethereum’s Layer 2 scaling solution, StarkEx in version 3, represents a strategic pivot.
The migration process from Ethereum for users involves the wethDYDX smart contract, facilitating the exchange of ethDYDX tokens for wethDYDX on Ethereum and DYDX, the native token on the dYdX Chain. Approximately 437 million ethDYDX tokens have been bridged significantly, with around 16.45 million DYDX staked on the chain.
Emphasis on Early Adopters and Responsible Trading
An incentive program, proposed by Chaos Labs and sanctioned by the dYdX community, has allocated $20 million in DYDX tokens for early adopters of the chain.
This six-month initiative aims to stimulate adoption and trading volume while implementing measures against abusive practices like wash trading. The distribution of these rewards will undergo community approval, ensuring a fair and equitable approach.
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