OKX market data shows that DYDX, the native token of decentralized derivatives protocol dYdX, surged to a high of $4.10 before stabilizing at $3.94—a 24-hour increase of 15.66%.
Key Drivers of DYDX's Rally
The catalyst for this rally traces back to Proposal #1, passed on November 13, which activated trading markets on dYdX Chain. This milestone marks the transition to Beta Phase, enabling users to trade on the long-anticipated v4 upgrade.
From Ethereum to Cosmos: A Strategic Pivot
In June, dYdX announced its migration from Ethereum to Cosmos, leveraging Cosmos SDK to build dYdX Chain as its v4 foundation. This shift redefines DYDX's utility:
- Original ERC-20 DYDX (ethDYDX): Limited to governance of v3, with no revenue-sharing.
- New DYDX on dYdX Chain: Becomes the Layer 1 native token, unlocking staking rewards and governance.
Revenue-Sharing Model
dYdX Chain allocates 100% of protocol fees (trading fees in USDC, gas fees in DYDX/USDC) to stakers, including validators and delegators. Notably, dYdX Trading Inc. and its employees will not participate in staking to ensure community control.
Current Staking Metrics
- Bridge Migrations: ~350M ethDYDX migrated to dYdX Chain.
- Staked DYDX: ~10M tokens staked.
- Early Trading Volume: 24-hour stats show 609 transactions, $3M total volume—yielding negligible staking rewards for now.
Projected Earnings
While official APR data remains pending, analysts like Ouroboros Capital estimate ~20% APR, contingent on:
- DYDX staking participation rate.
- v4 trading volume growth.
Conclusion
dYdX v4 elevates DYDX from a governance token to a yield-generating asset, reshaping its market valuation.
FAQ
Q1: How does dYdX Chain’s revenue-sharing work?
A1: 100% of fees (USDC trading fees + DYDX/USDC gas fees) are distributed to stakers.
Q2: What’s the expected staking APR for DYDX?
A2: Estimates suggest ~20%, but real yields depend on network activity and staking rates.
Q3: Why migrate from Ethereum to Cosmos?
A3: Cosmos SDK offers scalability and customizability, enabling dYdX Chain’s L1 autonomy.
Q4: Can dYdX Trading Inc. influence staking rewards?
A4: No—the team abstains from staking to maintain decentralization.