Cosmos-based Layer 1 dYdX Chain has begun distribution DYDX
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rewards arising from trading activities for users, following the start of full trading on the decentralized derivatives trading protocol, which was given the green light by a decisive board votes.
dYdX Chain’s beta mainnet launched on November 14 and initiated “active trading” on over 33 markets with up to 20x leverage. During the beta phase, although staking rewards were active, no trading rewards were given out, but users still earned 100% of the protocol’s trading fees. Following the conclusion of the board vote earlier today, trading rewards are now fully possible. Staking rewards for validators and stakers are still paid out in USDC and DYDX.
Since launching into beta two weeks ago, the protocol has seen a total of more than $1.86 million in transactions across approximately 14,000 transactions, as reported by the dYdX Operations subDAO, which manages the dYdX Chain’s decentralized infrastructure.
Initially, only four markets will be available for full trading: BTC/USD, ETH/USD, SOL/USD and LINK/USD, with more markets to be added in the coming weeks, dYdX Operations subDAO said.
Migrate from Ethereum to the Cosmos ecosystem
The alpha mainnet for dYdX version 4, along with the debut of the Cosmos-based blockchain, launched on October 26, marking a notable transition for the leading decentralized derivatives platform to become a standalone Layer 1 on Cosmos, having previously relied on Ethereum Layer. 2 scale solution StarkEx in version 3.
Users migrating from Ethereum to the dYdX Chain will leverage the wethDYDX smart contract, a one-way bridge that enables the exchange of ethDYDX tokens for wethDYDX on Ethereum and DYDX, the native token on the dYdX Chain. There are currently over 437 million ethDYDX bridged and 16.45 million DYDX stakes in the dYdX chain. according to to the dYdX Foundation.
Encouraging early adopters
The dYdX community too approved today’s launch of a six-month incentive program proposed by Chaos Labs. The program reserves $20 million in DYDX tokens to be distributed to early adopters of the dYdX Chain, with the aim of increasing adoption and trading volume.
The program is also designed to prevent abuse, such as wash trading, and any distribution of the DYDX rewards is subject to approval from the dYdX community.
The dYdX platform ranks as the most comprehensive decentralized trading platform for crypto derivatives, with a cumulative volume of more than $1 trillion since 2020.
Updated all the time to reflect trading rewards are available to all users of the platform.
