Just In: DYDX Chain Launches Trading Rewards on Cosmos Layer 1

dYdX Chain

The dYdX Chain, now operating on the Cosmos-based Layer 1 platform, has recently taken a significant step forward by initiating trading rewards for validators and stakers. This development comes after the full trading launch of the decentralized derivatives trading protocol. Introducing these rewards marks a new chapter in the platform’s evolution, especially following a decisive governance vote that motioned this change.

DYDX Trading Rewards Kick Off After Successful Beta Phase

Since its beta mainnet debut on November 14, the dYdX Chain has facilitated active trading across over 33 markets, offering up to 20x leverage. Although staking rewards were available during this beta phase, trading rewards remained pending. However, validators and stakers have accumulated 100% of the protocol’s trading fees. With the governance vote’s conclusion, trading rewards are now fully operational. Additionally, stakers will continue receiving rewards in both USDC and DYDX.

The protocol has witnessed substantial activity in just two weeks since the beta launch. This includes more than $1.86 million in total trades across approximately 14,000 transactions, a testament to the platform’s growing popularity and robust infrastructure managed by the dYdX Operations subDAO. Initially, the full trading feature is available in four markets, including BTC/USD, ETH/USD, SOL/USD, and LINK/USD, with plans to expand to more markets shortly.

Transition from Ethereum to Cosmos Ecosystem

A noteworthy shift occurred with the launch of dYdX version 4’s alpha mainnet on October 26, marking the platform’s move to a standalone Layer 1 on Cosmos. This transition from Ethereum’s Layer 2 scaling solution StarkEx in version 3 represents a central strategic pivot. 

The migration process for users from Ethereum involves the wethDYDX smart contract, facilitating the exchange of ethDYDX tokens for wethDYDX on Ethereum and DYDX, the native token on the dYdX Chain. Over 437 million ethDYDX tokens are significantly bridged, and about 16.45 million DYDX are staked on the dYdX Chain.

Focus on Early Adopters and Responsible Trading

A new incentive program, proposed by Chaos Labs and approved by the dYdX community, earmarks $20 million in DYDX tokens for early adopters of the dYdX Chain. This six-month program aims to boost adoption and trading volume while implementing safeguards against abusive practices like wash trading. The distribution of these rewards will undergo community approval, ensuring a balanced and fair approach.

Read Also: TerraClassicUSD (USTC) Rally Propels Surge In LUNC Staking APR

The post Just In: DYDX Chain Launches Trading Rewards on Cosmos Layer 1 appeared first on CoinGape.

Crypto Feed:
Kelvin Munene Murithi