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Trading & Launch Rewards Now Live on dYdX Chain!

dYdX
dYdX
Trading & Launch Rewards
dYdX
dYdX

TLDR:

  • The dYdX Chain progressed from its Beta Stage to full production trading on November 28th, 2023 via a community vote.

  • ETH, BTC, SOL, and LINK markets are available to trade at dydx.trade. New markets are planned to be continuously added to the front end in the coming weeks. dydx.trade is operated by the dYdX operations subDAO.

  • Trading Rewards are active on the dYdX Chain! ~50,000 DYDX per day is available to be earned by traders on the dYdX Chain. Trading Rewards are now distributed immediately rather than needing to wait a month. A full blog post explaining initial Trading Rewards contemplated in the code can be found here.

  • The dYdX Launch Incentives Program, run by Chaos Labs, is live alongside Trading Rewards for the next six months, during which $20M of DYDX in incentives will be distributed. Launch Incentive Rewards are distributed based on a points system for using the dYdX Chain. Chaos Labs has published an extensive blog post explaining the program here.

Introduction

November 28th marks a huge milestone as the dYdX Chain mainnet has progressed via a community vote from its Beta Stage to full production trading.

We at dYdX Trading Inc. are very excited to see the main deployment of our open-source software progress to full production trading!

The dYdX Chain is made available via the dYdX Ops subDAO front end, and each of the topics discussed herein is subject to change by the applicable governance community (the “Governance Community”). We recommend traders review any documents published by the Governance Community for the most up-to-date information. This blog post is merely intended to provide information about the open-source software that we are developing, which can be adopted by any Governance Community.

Trading Rewards

Trading rewards contemplated in the initial software are subject to adjustments by the Governance Community.

Earlier this year, we published a blog post regarding the default parameters for trading rewards in our open-source software. With the dYdX Chain advancing to full production, these trading rewards have been activated by the DYDX Governance Community.

How will trading rewards work? 

Traders will be rewarded after each successful trade on the protocol. On the dYdX Chain this happens immediately rather than having to wait until the end of the month!

Immediately after each fill, trading rewards will be sent directly to the trader’s dYdX Chain address, based on the amount of fees paid by the trader. Prior to each trade, the UI will also show the expected amount of rewards a trade of that size will receive. Traders can earn trading rewards up to, but not exceeding, 90% of a fill’s net-trading-fees, paid in DYDX . ~50,000 DYDX per day is available to be earned by traders on the dYdX Chain.

See this blog post for full details.

Launch Incentives Program

The Launch Incentives Program was designed and approved by the DYDX governance community.

The governance proposal for the Launch Incentives Program set aside $20M of DYDX from dYdX Chain Community Treasury to be distributed over the course of six months. 80% of rewards will go towards trading activity, while 20% will go towards market maker activity. This program will closely monitor the protocol and could adjust these weights as activity on dYdX Chain evolves.

Chaos Labs has published an extensive blog post describing the program.

The Launch Incentives Program’s Rewards

Traders on the dYdX Chain will be rewarded according to their overall level of trading activity as measured by trading fees paid. These make up the majority of the Launch Incentives Program rewards, accounting for 70-85% of the program’s allocation of rewards for traders. The remaining 15-30% will be used to pay out performance-based rewards designed in a league format.

These rewards will be paid out over the course of 4 expected trading seasons during this six month period with each trading season lasting roughly 4-6 weeks. The Launch Incentives Program will operate off of a points-based system. Points can be earned by using the dYdX Chain.

The Performance Based Prizes

The performance-based prize program segments traders by their average equity over a trading season and distributes prizes according to a trader’s rank within their segment. The most profitable traders will earn the most rewards.

Traders will be promoted and relegated based on their performance in a trading season. The different tiers allow participation in these rewards at all levels. These performance-based rewards would begin in the second trading season, once traders have finished an initial season sort themselves into segments. Volume data in trading season 1 will define the initial segment placements in season 2.

The segments and value of prizes are defined below:

Chaos Labs has written extensively about the formulas through which they derived these rewards. You can read through their blog post to learn more and for the most up-to-date information!

About dYdX and Terms

dYdX’s mission is to democratize access to financial opportunity. We believe that the dYdX Chain represents a large step forward in service of that mission. 

If building the future of DeFi is something you’re interested in, check out what it’s like to work at dYdX and our open roles!

Join the discussion on Discord, participate in the dYdX community, or follow us on Twitter.

Learn more at dydx.exchange.

Terms and Conditions: The dYdX Ops SubDAO, Chaos Labs and dYdX Foundation are independent from and unaffiliated with dYdX, and dYdX is not responsible for any action taken by the foregoing or any other third parties, including content set forth on any third-party websites, such as any links to such content in this document. dYdX does not deploy or run v4 software for public use, or operate or control any dYdX Chain infrastructure. dYdX is not responsible for any actions taken by other third parties who use v4 software. dYdX services and products are not available to persons or entities who reside in, are located in, are incorporated in, or have registered offices in the United States or Canada, or Restricted Persons (as defined in the dYdX Terms of Use). The content provided herein does not constitute, and should not be construed, or relied upon as, financial advice, legal advice, tax advice, investment advice or advice of any other nature, and you agree that you are responsible to conduct independent research, perform due diligence and engage a professional advisor prior to taking any financial, tax, legal or investment action related to the foregoing content. The information contained herein, and any use of v4 software, are subject to the v4 Terms of Use.

(Last Updated: February 7, 2024)