Prepare the DYDX distribution, one of the largest airdrops in DeFi history, to more than 64,000 users
Users of the dYdX exchange have been well rewarded for their patience when the team finally answered the multi-million dollar question: “When token?” Recently, this DeFi trading platform announced the launch of a governance token, accompanied by the good news of DYDX airdrops a large number of tokens to users who meet certain conditions.
DeFi platform dYdX launches governance token, airdrops for users
- What is DYDX?
DYDX is a governance token that allows holders actually to govern the dYdX Layer 2 protocol. By enabling shared control of the protocol, DYDX allows traders, liquidity providers, and partners of dYdX to work collectively towards an enhanced protocol.
In addition, DYDX enables a robust ecosystem around governance, rewards, and staking — each designed to drive future growth and decentralization of dYdX, resulting in a better experience for users.
- dYdX airdrops governance token, who and how to receive the rewards?
DeFi is made up of many different pieces. The community will well receive any project that adds the missing pieces. Typically, Uniswap provides AMM puzzle pieces, and Compound provides lending and DAI puzzle pieces. Meanwhile, dYdX is considered a decentralized trading platform that supports margin trading and moves towards derivatives.
On August 3, the protocol announced the much-awaited launch of the DYDX governance token. In February of this year, the protocol also announced a partnership with Starkware to bring their trading to layer 2. While the token will be non-transferrable for its first 36 days, DYDX holders will receive trading fee discounts and yield in exchange for securing the protocol.
An account will receive an airdrop
According to the announcement, dYdX will distribute 7.5% of its total supply (equivalent to 75,000,000 DYDX) as an airdrop for users who have experienced dYdX before. However, unlike previous Uniswap or 1-inch airdrops, to receive DYDX, users must complete certain trading milestones on the protocol. Whoever has a large trading volume will enjoy more tokens. However, if you deposit before July 26th, 2021, you will also receive a certain amount of DYDX; make at least one transaction on the exchange in August.
However, not everyone can claim tokens, and the airdrop does not apply to users in a jurisdiction where DYDX is not permitted, including in the United States. The token allocation will take place over a period of 5 years.
Five allocation tiers take into account a user’s past activity across all dYdX protocols. To claim DYDX, historical users must meet the following milestones on Layer 2 Perpetuals within the first 28-day epoch (Epoch 0): Any historical volume on the dYdX Layer 2 Protocol counts towards a user’s claim milestone.
Lifetime users of dYdX and their potential rewards | Source: dYdX
Progress towards your claim milestone can only be viewed at trade.dydx.exchange. The reason is that the dYdX Foundation does not have the ability to display and update real-time the transaction volume of each user.
This is a remarkable event, especially since this token launch comes from a large decentralized financial structure. As mentioned, dYdX is following in the footsteps of projects like Uniswap and Compound, both of which have decentralized the project’s governance structure through an airdrop of tokens to users who interacted with the project in its early stages.
At the moment, there are over 64,000 addresses eligible for the original DYDX distribution – one of the largest airdrops in DeFi history. But don’t be sad; users who are not eligible for the airdrop can still receive DYDX as trading rewards based on fees paid and open interest on the Layer 2 protocol.
Staking pools are designed to promote liquidity and safety on the Protocol. Rewards programs for trading, liquidity providing, and past usage of dYdX will help drive growth and adoption of dYdX. A liquidity staking pool of USDC will be incentivized with the governance token to provide the deep liquidity necessary for effective margin trading. Both of these measures will encourage professional market makers to provide liquidity on the exchange.
A secure staking pool will also distribute more governance tokens to users who stake DYDX. This pool will be used to create a safety net in the event of a security incident. They will go live when DYDX starts distributing on September 8th.
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