Decentralized exchange (DEX) dYdX is going live with its new native blockchain featuring a hefty rewards program for its users.
dYdX Chain, built using the Tendermint consensus with the Cosmos SDK, is a standalone chain for the DEX, which previously ran on Ethereum (ETH).
The launch of dYdX also features a six-month incentive program, launched by crypto firm Chaos Labs, which will allow traders to receive rewards based on their activity on the new chain. A total of $20 million worth of rewards will be distributed.
According to Chaos Labs, the rewards program is driven by objectives to “align with the community’s strategic goals.”
“Bootstrap Trading Activity: Focusing on rapidly increasing trading volumes and liquidity, attracting novice and veteran traders to make dYdX Chain their preferred trading platform.
Bootstrap Liquidity: Encouraging MMs (market makers) to prioritize the dYdX Chain, enhancing the trading experience through tighter spreads and larger trade sizes. This will mitigate risk by stabilizing markets, maintaining low funding rates, and facilitating efficient liquidations.
Bootstrap Staked DYDX: Securing the dYdX chain is essential, with trading activity directly influencing staking APYs and attracting more stakes. While this objective currently holds a 0% weight in direct incentives, adjustments may be considered at later stages…”
There is currently 54 million DYDX tokens allocated to the project’s Rewards Vester account, and over 172 million tokens in the Community Treasury address.
At time of writing, the dYdX DEX provides Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Chainlink (LINK) markets, and newer markets are planned to be continuously added to the frontend in the coming weeks, according to an announcement.
DYDX is trading for $3.27 at time of writing.
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Featured Image: Shutterstock/Yurchanka Siarhei