Cosmos-based dYdX Chain Begins Distributing Trading Rewards to Users
dYdX Chain, a Layer 1 protocol based on Cosmos, has started distributing rewards in DYDX tokens to users. This comes after the protocol received approval through a governance vote to enable full trading on its decentralized derivatives trading platform. The beta mainnet of dYdX Chain was launched on November 14, allowing for active trading across more than 33 markets with leverage of up to 20x. While staking rewards were active during the beta phase, trading rewards were not being distributed. Since the beta launch, the protocol has seen over $1.86 million in total trades across approximately 14,000 transactions.
Migrating from Ethereum to Cosmos
dYdX made a significant transition by launching its alpha mainnet version 4 on Cosmos, moving away from Ethereum Layer 2 scaling solution StarkEx used in version 3. Users who migrated from Ethereum to dYdX Chain utilized the wethDYDX smart contract as a bridge for exchanging ethDYDX tokens for wethDYDX on Ethereum and DYDX tokens on the dYdX Chain. Currently, over 437 million ethDYDX tokens have been bridged and 16.45 million DYDX tokens have been staked on the dYdX Chain.
Incentivizing Early Adopters
The dYdX community has approved a six-month incentive program proposed by Chaos Labs. The program allocates $20 million worth of DYDX tokens to reward early adopters of the dYdX Chain and increase adoption and trading volume. The program also aims to prevent abusive behaviors like wash trading and requires approval from the dYdX community for each distribution of rewards. With a cumulative trading volume of over $1 trillion since 2020, dYdX is the leading decentralized derivatives trading platform in the crypto space.
Hot Take: dYdX Chain Boosts Trading Rewards for Users
dYdX Chain, a Cosmos-based Layer 1 protocol, has started distributing trading rewards to users following the approval of full trading on its decentralized derivatives trading platform. The protocol has seen significant activity since its beta mainnet launch, with over $1.86 million in total trades across various markets. This transition from Ethereum to Cosmos signifies dYdX’s commitment to scalability and independence. The introduction of a six-month incentive program aims to incentivize early adopters and prevent abusive practices, further driving adoption and trading volume on the platform. With its impressive cumulative trading volume exceeding $1 trillion, dYdX solidifies its position as the top decentralized derivatives trading platform in the crypto industry.
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