Tag: Dydx

Decentralized Exchange dYdX Proposes $20M Incentive Program for v4 Launch

by Blockchain News

dYdX is moving forward with a proposal for a $20M Launch Incentives Program by Chaos Labs to facilitate a smooth migration to its version 4 (v4) platform. The fund, sourced from the dYdX Chain Community Treasury upon its deployment on the mainnet, is earmarked for a six-month duration to motivate the seamless transfer of users and trading volumes to the dYdX Chain. This proposition aims to gather community endorsement and is subject to a governance proposal on the dYdX Chain.

The dYdX Grants team hired Chaos Labs as a service provider for a number of tasks, such as creating portals for market maker risk, LP reward reporting and analysis, and new asset listing. In order to provide permissionless market listings on dYdX v4, they also participated in research with an emphasis on risk reduction, improving user experience, and liquidity provisioning incentivization.

The primary challenge as dYdX nears the v4 launch is migrating and expanding its existing user base. The necessity to secure liquidity and incentivize user migration to the new dYdX Chain is considered pivotal for the success of dYdX v4. Historical data underscores the effectiveness of Liquidity Mining or token reward programs in boosting protocol growth and trading volumes across the DeFi space. The Launch Incentives Program aims to replicate this success by encouraging a swift transition to v4.

The program is structured in two main phases, pre-launch and post-launch, detailed as follows:

Pre-Launch

Trading Reward Genesis Research: A preliminary phase focused on crafting reward distribution methodologies to promote desired user behaviors within the dYdX Chain ecosystem, including deposits, trading, staking, and governance participation.

v4 Analytics and Risk Portal: Designed to offer transparency and enable verification of reward recipients’ activity by the dYdX community. This portal will serve as a data hub, providing insights into user and market-specific activity.

v4 Reward Leaderboard Portal: This will display user engagements and accumulated rewards transparently, fostering healthy competition and community engagement.

Post-Launch

Trading Seasons: The incentive program will be divided into several trading seasons. The initial season is shorter to allow fine-tuning of the reward strategy and improve wash trading detection. Subsequent seasons will be determined randomly to introduce unpredictability, thereby reducing potential manipulation.

Trading Season Analysis: Post each trading season, analysis reports will be generated to highlight market dynamics, user behavior patterns, and overall protocol efficacy. These insights are crucial for shaping future reward allocation decisions.

The distribution of DYDX rewards will be governed by dYdX Chain community proposals at the end of each trading season. Chaos Labs will abstain from voting in any dYdX governance votes concerning reward distributions under the Launch Incentives Program to maintain an unbiased and transparent decision-making process.

This proposal, slated between September 28, 2023, and October 2, 2023, is a community temperature check before the final governance proposals, which will be created on the dYdX Chain post each trading season. With a near-unanimous community backing of 99.08% votes in favor, and a total of 15M DYDX votes supporting the proposal, it reflects a strong community endorsement for the Launch Incentives Program.

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dYdX Founder Foresees 100x Growth in DeFi Derivatives

by Blockchain News

In a recent tweet, Antonio Juliano, the founder of dYdX, shared his vision for the future of decentralized finance (DeFi) derivatives. Antonio stated,

dYdX will lead the growth of DeFi derivatives towards the next 100x. We don’t plan to branch out to other products.

Currently, DeFi accounts for approximately 2% of the volume in crypto derivatives. However, Antonio believes this figure is set to surge. He mentioned, “I believe that [DeFi] will grow 10x+ in the next few years (as will crypto itself).” This optimistic projection underscores the potential that industry insiders see in the DeFi derivatives market.

While the tweet provides a glimpse into dYdX’s strategic focus, it also highlights the broader sentiment about the growth trajectory of the DeFi sector. With the crypto market itself poised for expansion, the emphasis on DeFi derivatives suggests a promising avenue for investors and traders in the coming years.

About dYdX

DEX dYdX was founded by Antonio Juliano, and is well-known in the DeFi (Decentralized Finance) community for its cutting-edge offerings and user-friendly design.

Users can trade, borrow, and lend cryptocurrencies on the decentralized exchange (DEX) dYdX. dYdX doesn’t rely on middlemen to facilitate trades because it runs on smart contracts on the Ethereum blockchain, unlike conventional exchanges. Users have more control over their funds thanks to this decentralized nature, which also lowers the risks related to centralized exchanges.

The availability of derivative products is one of dYdX’s distinctive features. On the platform, users can trade perpetual contracts and margin, which are financial products whose value is derived from an underlying asset like a cryptocurrency. Because of this, traders who don’t actually own the underlying asset may still benefit from price changes.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

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dYdX Founder Addresses Community Concerns Regarding Token Inflation

by Blockchain News

Antonio, the founder of decentralized exchange dYdX, clarified the platform’s stance on token inflation in a series of tweets today. He stated,

There are no plans for additional token inflation to compensate validators on the dYdX Chain.

He further emphasized that the current token distribution model, which has seen inflation reduced by over 60%, will continue to be implemented.

Antonio’s comments come amidst growing discussions about the sustainability of dYdX’s token model. He mentioned, “dYdX may soon be the closest L1 besides Ethereum with a sustainable utility token model.” However, he also noted that his views were personal and highlighted the role of community governance in controlling the token.

The tweets sparked a debate among crypto enthusiasts. A user named KryptoKami criticized the token’s distribution, pointing out that two years post-token generation event (TGE), only 17% of the total supply is in circulation. KryptoKami argued that the token had “one of the worst tokenomics of all vc backed tokens,” emphasizing the slow liquidity exit for early backers.

Another user, Acee, viewed the token as a reward for traders, suggesting its utility in reducing fees. However, Acee also expressed concerns about the lack of a fee-sharing mechanism in the upcoming version of the platform, v4.

The discussions underscore the complexities and challenges faced by decentralized platforms in balancing tokenomics, utility, and community expectations. As dYdX continues to evolve, its approach to token distribution and utility will be closely watched by both its users and the broader crypto community.

dYdX Semi-annual Report

In dYdX recent semi-annual report, dYdX Foundation revealed a trading volume of $1.5 trillion over the past six months, with its user base growing by 2 million to reach 12 million. The decentralized exchange platform highlighted that 80% of its trades are now processed on Layer 2, largely due to its integration with StarkNet, enhancing transaction speeds and reducing costs. The active dYdX community introduced 20 new governance proposals, and the platform distributed $500 million in staking rewards. Additionally, 10 new projects have been incorporated into the dYdX ecosystem. The report underscores dYdX’s commitment to growth, innovation, and addressing challenges in the DeFi sector.

About dYdX

dYdX, a decentralized crypto exchange, is driven by its governance token, DYDX, which guides its layer 2 protocol. Utilizing Starkwire’s StarkEx engine, dYdX enhances transaction efficiency and reduces costs. Founded in 2017 by former Coinbase engineer Antonio Juliano and Zhuoxun Yin, it began operations in 2019 after securing over $10 million in funding. The platform, known for derivatives and margin trading, offers advanced trading options, perpetual contracts, and an interest-accruing system for deposits.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

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dYdX Semi-Annual Report: $1.5 Trillion Trading Volume with 12 Million Users

by Blockchain News

Key Takeaways

  1. dYdX’s trading volume surges to $1.5 trillion in six months.

  2. The platform adds 2 million new users, totaling 12 million.

  3. 80% of trades now occur on Layer 2, with StarkNet integration playing a pivotal role.

  4. Active community engagement with 20 new governance proposals introduced.

  5. $500 million distributed in staking rewards, and 10 new projects join the dYdX ecosystem.

Trading and User Metrics

dYdX Foundation, in its latest report dated September 10, 2023, has highlighted a significant uptick in its trading volume, reaching a staggering $1.5 trillion in just the past six months. This growth is further complemented by the addition of 2 million new users, pushing the platform’s total user count to an impressive 12 million.

Technological Advancements

Emphasizing its commitment to scalability and enhanced user experience, dYdX has reported that a whopping 80% of its trading volume is now facilitated on Layer 2. This shift not only ensures faster transaction speeds but also considerably reduces associated costs. A major highlight in this domain is dYdX’s strategic integration with StarkNet, a renowned Layer 2 scaling solution. This integration is poised to further amplify the platform’s efficiency, especially given the burgeoning user base.

Community and Ecosystem Development

The dYdX community’s active participation is evident from the introduction of 20 new governance proposals in the past six months. Such engagement showcases the community’s vested interest in the platform’s continuous evolution. Furthermore, the report sheds light on dYdX’s generous distribution of $500 million in staking rewards, a clear testament to its intent to incentivize user participation and loyalty. On the ecosystem front, dYdX has welcomed 10 new projects, aiming to bolster its offerings and foster a more cohesive DeFi environment.

While the report predominantly focuses on dYdX’s milestones and achievements, it doesn’t shy away from highlighting challenges and potential areas of improvement. The foundation’s proactive approach towards addressing these challenges reaffirms its commitment to offering a seamless user experience.

In wrapping up, dYdX’s 2023 Semi-Annual Ecosystem Report serves as a testament to the platform’s relentless pursuit of growth, innovation, and community engagement. As the DeFi landscape continues to evolve, dYdX is undoubtedly positioning itself as a formidable player in the space.

About dYdX

dYdX is a decentralized crypto exchange powered by its governance token, DYDX. This token plays a pivotal role in steering the platform’s layer 2 protocol, allowing stakeholders to collaboratively influence its direction. Leveraging Starkwire’s StarkEx engine, dYdX’s layer 2 optimizes transaction efficiency, minimizes gas expenses, and ensures competitive trading charges. While it offers spot trading, dYdX predominantly focuses on derivatives and margin trading. Established in 2017 by ex-Coinbase engineer Antonio Juliano and Zhuoxun Yin, dYdX became operational in 2019 after raising over $10 million in initial funding. The platform stands out with its advanced trading features, perpetual contracts, and a system that accrues interest on user deposits.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

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dYdX Founder: Focus on Overseas Markets Over US for Crypto

by Blockchain News

On August 26th, dYdX founder Antonio Juliano shared his views on Twitter about the US crypto landscape. He advised crypto developers to prioritize overseas markets due to the existing regulatory hurdles in the US. “Crypto builders should just give up serving US customers for now and try to re-enter in 5-10 years,” Juliano tweeted, emphasizing that the majority of the market is overseas. “Innovate there, find PMF, then come back with more leverage.”

Juliano further clarified his stance, stating that in the broader picture, very few people currently use or are concerned about crypto. His primary focus is on the long-term growth of the crypto sector, aiming for a 100x increase. He believes that the key to this growth is finding a stronger product-market fit, which doesn’t necessarily require perfect distribution. “There is a plenty big overseas market to experiment in,” he added.

However, Juliano did not dismiss the importance of US crypto policy. He acknowledged its significance, especially since many countries often follow the US’s lead. He emphasized the need for crypto products with massive usage, which would influence policy decisions. “We need to have products with massive usage where users (voters) say ‘wait, I need this’,” he pointed out.

The dYdX founder also highlighted the importance of builders being able to remain in the US, given the concentration of tech talent in the country. He expressed his frustration over the fact that many Americans, including those in his New York office, cannot use products that address long-standing crypto challenges. “Crypto is aligned with American values… America will realize that eventually,” Juliano concluded.

In response to Juliano’s tweets, Brian Armstrong, CEO of Coinbase, offered a more optimistic outlook. He believes that the situation in the US will improve sooner than Juliano anticipates, possibly by next year. “The U.S. always gets it right, after exhausting every other option,” Armstrong tweeted, expressing confidence in the country’s ability to adapt and support crypto progress.

Both leaders, while having different timelines in mind, seem committed to navigating the challenges and ensuring the growth and adoption of crypto in the US and beyond.

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dYdX to Exit Canadian Market

by Blockchain News

Cryptocurrency derivatives exchange dYdX has announced that it will be exiting the Canadian market due to regulatory restrictions. In an April 7 blog post, the exchange revealed that it would be winding down services in Canada over the next seven days. The move will begin with halting the onboarding of new users located in the country.

On April 14, dYdX will shift all existing Canadian users to “close-only mode,” which will allow them to withdraw funds but not engage in any new transactions. The exchange hopes for a change in the regulatory climate that will allow it to resume services in Canada.

In the blog post, dYdX stated its commitment to providing transparency around product decisions and democratizing access to financial opportunity. The exchange expressed hope that the regulatory climate in Canada would eventually change, enabling it to resume services in the country.

This move by dYdX follows the Canadian Securities Administrators announcing additional restrictions for crypto exchanges’ registration requirements in the country. According to the rules, platforms were prohibited from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative.

The regulatory restrictions in Canada have become a growing concern for cryptocurrency exchanges, with many having to shut down or exit the market altogether. It remains to be seen how the regulatory landscape will evolve in the future.

Notably, dYdX faced criticism from users and those in the crypto space in September 2022. The exchange had offered a $25 deposit bonus for confirming someone’s identity using a live webcam image. The promotion was later ended, citing “overwhelming demand” rather than privacy concerns put forth.

dYdX is a popular cryptocurrency derivatives exchange that allows users to trade various cryptocurrency assets on margin. The exchange has gained popularity in recent years due to its user-friendly platform and high liquidity.

In conclusion, dYdX’s decision to exit the Canadian market highlights the increasing challenges faced by cryptocurrency exchanges in the country. The regulatory restrictions have made it difficult for exchanges to operate, and it remains to be seen how the situation will evolve in the future. Nevertheless, dYdX’s commitment to transparency and democratizing access to financial opportunity remains unwavering.

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dYdX to Exit Canadian Market Amid Regulatory Restrictions

by Blockchain News

Cryptocurrency derivatives exchange dYdX has announced that it will be exiting the Canadian market over the next seven days. In an April 7 blog post, the company stated that it will be “winding down services” in Canada, beginning with the halting of new user onboarding in the country. On April 14, the exchange will move all existing Canadian users to “close-only mode,” allowing them to only withdraw funds.

According to dYdX, the decision was made due to increased regulatory restrictions in Canada. The Canadian Securities Administrators recently announced additional restrictions for crypto exchanges’ registration requirements in the country. The new rules require platforms to prohibit Canadian clients from entering into crypto contracts to buy and sell any crypto asset that is a security and/or a derivative.

dYdX stated in its blog post that it is committed to transparency and democratizing access to financial opportunity. The exchange expressed hope that the regulatory climate in Canada will eventually change, allowing it to resume its services in the country.

This move by dYdX follows criticisms the exchange received in September 2022 when it offered a $25 deposit bonus for confirming someone’s identity using a live webcam image. Many dYdX users and individuals in the crypto space raised privacy concerns, and the exchange ended the program due to “overwhelming demand.”

dYdX is a decentralized exchange that specializes in cryptocurrency derivatives trading. It is among the many cryptocurrency exchanges that have faced increased regulatory scrutiny in recent years, particularly regarding investor protection and anti-money laundering measures.

Although dYdX’s exit from the Canadian market may be a setback for the company, it is reflective of the challenges that many cryptocurrency exchanges face in navigating regulatory environments around the world. As the crypto space continues to evolve and mature, it is likely that regulatory authorities will continue to monitor and regulate the industry to ensure investor protection and mitigate risks associated with the emerging asset class.

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dYdX Taps ConsenSys’ Charles d’Haussy as CEO of its Foundation

by Blockchain News

dydx, one of the most prominent and powerful Decentralized Exchanges (DEX) in the crypto ecosystem, has announced the appointment of Charles d’Haussy, a crypto leader from ConsenSys, to serve as the Chief Executive of its Foundation.

DEX2.jpg

As the new boss of its not-for-profit foundation, Charles will bring his wealth of experience to help dydx chart an ambitious path forward. With the dydx Foundation tasked with supporting the dYdX protocol, Charles’s track records with ConsenSys and as a FinTech head with the Hong Kong government will help him in delivering just the right growth strides for the protocol.

Since its inception in 2017, dYdX now ranks as the biggest DEX in today’s DeFi world. At the time of writing, the protocol has over $342 million in daily trading volume and ranks well above Kine Protocol and Uniswap V3, according to data from CoinMarketCap. 

As part of its growth push, dYdX has unveiled plans to launch its V4 engine, which is slated for the second quarter of 2023. With Charles now at the helm of affairs, the perfect delivery of its new trading engine will be amongst the top things on his agenda as he assumes office.

“I am very excited to welcome Charles into his role as CEO of dYdX Foundation. His wealth of cross-industry experiences engaging with different stakeholders will be an extremely valuable addition to the Foundation and lead us to the next stage of growth, “Arthur Cheong, President of dYdX Foundation Council.

Amongst his core roles will be pushing for new partnerships for the protocol, drawing on his experiences in international business relations. 

The mega shift in leadership for the decentralized exchange protocol mimics related moves from top platforms and startups in the Web3.0 ecosystem. One of the outfits most aggressive with its hiring spree is Animoca Brands, whose recent appointments featured Jared Shaw as its Chief Financial Officer back in September.

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These Crypto Assets Have 10X Potential in 2022, According to Altcoin Daily

by Dailyhodl

Crypto analyst and host of Altcoin Daily Austin Arnold is laying out his top crypto picks as the markets try to shake off a sluggish start to the year.

In a new video, the closely followed trader tells his 1.19 million subscribers that he remains interested in Bitcoin (BTC) as an asset despite the massive selloff which the top crypto has undergone since hitting an all-time high above $69,000 in November.

“People are buying the dip from every exchange. Bitcoin is leaving exchanges.

Miners are not selling their Bitcoin, they’re holding onto it.”

At time of writing, Bitcoin is down 2.02% to $42,613.

Next on Arnold’s list is the leading smart contract platform Ethereum (ETH), noting that,

“Ethereum has its own supply shock going on.

Ethereum 2.0 deposit contract has surpassed $30 billion in value. Once [holders] put their ETH in the deposit contract, they can’t take it out again until it is fully transitioned.”

Ethereum is down 2.17% on the day and trading for $3,259.

The show host has his eye on decentralized finance protocol Uniswap (UNI), which recently deployed on fellow layer-2 protocol Polygon (MATIC).

“2022 might be the year of layer-2s.”

Uniswap is valued at $15.61 while Polygon is trading for $2.26.

Another layer-2 the Altcoin Daily host is keen on is Immutable X (IMX), a scaling solution for non-fungible tokens (NFTs) that aims to enable near-instant, zero gas fee transactions.

The altcoin is down 3.24% on the day and priced at $3.55.

Next on Arnold’s list is the open-source platform Tezos (XTZ), which has been racking up corporate partnerships lately. The latest milestone sees apparel giant The Gap releasing NFT collectibles based on the Tezos platform.

“Tezos is certainly an altcoin to watch doing big things.”

Tezos is also down slightly today to $4.18.

Looking at the Internet of Things space, the Altcoin Daily host highlights open-source public blockchain Helium Network (HNT), which recently surpassed the 450,000 hotspot milestone.

Arnold says of Helium,

“It is a quality [venture capital]-backed project.”

The altcoin is currently priced at $32.59, down 7.23% on the day.

Enterprise-grade scalable blockchain platform Elrond (EGLD) also makes the list of crypto assets to watch after acquiring Web3 payments provider UTRUST (UTK), which in turn integrated EGLD as a form of payment.

“Big win for EGLD.”

Elrond continues the overall daily downtrend and is off by 6.57% to $196.72.

Last on the Altcoin Daily docket is decentralized exchange platform dYdX (DYDX), which the host notes is aiming to achieve full decentralization by the end of this year.

Currently, dYdX is up 2.38% and changing hands for $7.81.

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dYdx outline plans for full decentralization in late 2022

by Cointelegraph

dYdX, the layer-two derivates protocol, has published the fourth iteration of its roadmap detailing their intentions to evolve into an open-source, community-governed and fully decentralized exchange by the end of this calendar year.

The platform currently runs on a hybrid model whereby a portion of operations are decentralized, most notably staking and governance, while other components such as the off-chain orderbook and matching engine are managed by dYdX Trading Inc, alongside external support from a number of partnered centralized servers such as Amazon Web Services.

“There will no longer be central points of control or failure of the protocol”, they stated, before continuing on to say that “all aspects of the protocol that can be controlled will be fully controlled by the community.”

Related: AWS outage hits dYdX, raising concerns over its decentralization

In addition to decentralized endeavours, the platform also seeks to understand capabilities of implementing spot, margin and sythentic trading capabilities, enhance the trading experience and interface, as well as appointing an external auditor to assess the platform on an consistent basis. 

dYdX experienced a record-breaking year in 2021, emerging as one of the most prominent outfits built upon Ethereum, for which it utilizes its smart contract and Starkware zero-knowledge rollups.

In September last year, the derivative exchange distributed the dYdX governance token to an overwhelming fanfare from its 64,306 eligible users, as well as the wider crypto community. Average customers who had traded between the values of $1,000 and $10,000 prior to the retroactive close-off date could claim 1,163 DYDX, equivalent to $16,561 at the time.

Following the airdrop, momentum surged for the project and was quantitatively epitomized when exchange surpassed the daily trading volume of global exchange Coinbase ($4.3 billion to $3.7 billion) for the first time in its history. As a consequence, the asset rose to an all-time high of $27.78 on Sept 30, however has now fallen almost 75% to a price of $7.20 amid a wider market correction.