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Tutorial: Overview of dYdX platform trading incentive activities

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Through a $20 million incentive program and the “trade to earn” feature, users will receive incentives when trading

Original source: dYdX

Original compilation: BlockBeats

Chaols Labs’ $20 million trading incentive plan

Chaols Labs is holding an incentive event authorized by dYdX DAO governance. This event aims to promote the seamless migration of early users of dYdX Chain to V4. Users can check how many points they have earned through the Chaols Labs Dashboard https://community.chaoslabs.xyz/dydx-v4/risk/leaderboard

The incentive plan launched by Chaols Labs will last for 6 months, with a total reward of US$20 million. Rewards are based on trading activity levels and measured by trading fees paid.

As of January 12, 2024, the event has entered its second season and is expected to last until February 14-February 24. In its first season, the campaign has distributed $5 million in DYDX tokens to 2,006 accounts.

As of the end of the first quarter, the trading volume of the dYdX platform continued to grow, with cumulative trading volume exceeding $9.5 billion. And in Season 2, the Trade Alliance (performance-based rewards) was introduced as a new initiative. Performance is measured as a percentage return, and the top-performing users each season receive a portion of this reward pool.

Currently, dYdX trading incentives The second season of the plan has ended and the third season has been officially launched.

According to the second quarter end-of-quarter report, dYdX Chain’s trading volume across 39 live markets has exceeded $33 billion. That’s a 245% increase from the first quarter. There were more than 3,200 participating traders, an increase of more than 41% compared with the first quarter.

In addition, driven by the incentive plan, the TVL of the dYdX chain has grown to approximately $57 million. Fluctuations in funding rates have been relatively flat in most major markets, indicating increasing market maturity.

According to official data released by dYdX on February 27, the platform’s weekly trading volume has reached US$7.52 billion, and the amount of rewards issued in a single week has reached US$1.29 million. The total rewards Distributions have reached US$7.77 million, and cumulative transaction volume has exceeded US$47.4 billion.

"trade to earn": protocol-level trading rewards

Traders on the protocol Get rewards after every successful transaction. After each trade, users will immediately have a certain amount of trading rewards sent directly to their dYdX Chain address according to the formula described below.

But it is worth noting that , only takers are eligible to receive this reward, and users can check the expected number of DYDX received before placing an order.

Transaction rewards are denominated in DYDX , and automatically assigned to eligible dYdX Chain addresses for each block. Traders do not need to wait or manually claim trading rewards denominated in DYDX.