One article to understand 5 ways to get dYdX governance tokens

On August 3, the decentralized derivatives trading protocol dYdX announced the launch of the governance token DYDX and airdrops to addresses previously interacted on the platform.

The total amount of governance tokens DYDX is 1 billion, which is mainly used for dYdX protocol governance and fee discounts. DYDX allocation mechanism :

  • 50% (500,000,000 DYDX) is allocated to the community, as follows:

25% (250,000,000 DYDX) is allocated to users of transaction mining

7.5% (75,000,000 DYDX) are allocated to retrospective mining users

7.5% (75,000,000 DYDX) is allocated to market maker mining market maker

5% (50,000,000 DYDX) is allocated to community reserve funds

2.5% (25,000,000 DYDX) is allocated to users who pledge USDC to a liquid staking pool

2.5% (25,000,000 DYDX) is allocated to users who pledge DYDX to the insurance fund pledge pool;

  • 27.73% (277,295,070 DYDX) allocated to past investors
  • 15.27% (152,704,930 DYDX) are allocated to dYdX Trading or dYdX Foundation members
  • 7.00% (70,000,000 DYDX) are allocated to future members of dYdX Trading or dYdX Foundation

XwmsPja0bOtampBIVd3gJvZG9S6up6qmo5NhgRxy.png

What is the start and end time of the DYDX token reward event?

  • Retroactive mining starts at 15:00:00 UTC on August 3, 2021 and ends at 15:00:00 UTC on August 31, 2021, for a period of time.
  • Transaction mining starts at 15:00:00 UTC on August 3rd, 2021 and ends at 15:00:00 UTC on August 3rd, 2026 for a period of five years.
  • Market-making mining starts at 15:00:00 UTC on August 3, 2021 and ends at 15:00:00 UTC on August 3, 2026 for a period of five years.
  • The liquid bet pool starts at 15:00:00 UTC on August 3, 2021 and ends at 15:00:00 UTC on August 2, 2026 for a period of five years.
  • The insurance pledge pool starts at 15:00:00 UTC on September 8, 2021 and ends at 15:00:00 UTC on September 7, 2026 for a period of five years .

DYDX acquisition rules

At this stage, there are five different ways to obtain DYDX tokens. (Non-US users)

  • If you have used any generation of dYdX products in the past, including Layer 1 spot, leverage and contract and Layer 2 contract products, you can participate in retroactive mining projects that are only open to old users.
  • If you are a new user using dYdX Layer2 contract products, you can participate in dYdX transaction mining, liquid staking pool and insurance staking pool.
  • If you are a professional market maker, if you have provided more than 5% liquidity in dYdX, you can participate in the market making mining project.
  • At this stage, only selected market makers can lend USDC from the liquid staking pool. In the future, the community can vote to decide which market makers can borrow from USDC.

The airdrop rewards are mainly based on retrospective mining rewards. dydx stated that it has taken a snapshot of all historical interactive users of the dYdX protocol on July 26, and a total of 36,203 users have received empty investment grids. There are five levels of allocation, depending on the usage of all dYdX protocols.

At 15:00:00 UTC on September 8, 2021 (23:00 on September 8, Beijing time), 8 days after the end of the first period , all DYDX tokens will be automatically unlocked for the first time; at that time, there will be approximately 8.11% DYDX token liquidity.

UfA8cO7iDL3J0AuJbkVokmXGL9OShacUZPIYiMAR.png

Changes in the total supply of liquidity over time

Retroactive mining

All traders who use the dYdX protocol (permanent, margin, spot) or users who deposit funds in USDC in the dYdX supply pool are eligible to receive DYDX as a trading reward.

According to the use restrictions of the DYDX and dYdX Layer 2 agreements in the United States, retroactive mining cannot be provided to users located in the United States or any other prohibited jurisdictions.

Historical users can be viewed on trade.dydx.exchange/portfolio/rewards.

If you need to apply for DYDX, historical users must meet a certain transaction volume under the dYdX Layer2 agreement within the first 28-day period (0 period):

KQawblQExUsBf1xCEcugMPZBwOTi2ZyRtoLBN8LA.png

Any historical trading volume on the dYdX Layer2 agreement will be counted into the user’s claim milestone. At the end of the 0 period, any unclaimed DYDX will be confiscated and automatically transferred to the community fund library . Eight days after the end of the first period , at 11:00 on September 8 , 2021 (UTC+8), users can start withdrawing and transferring their tokens.

Transaction mining

25% of DYDX tokens will be distributed to all users participating in dYdX contract transactions in each period (28 days) within five years, and 3,835,616 DYDX will be distributed in each period. The DYDX tokens that each trading user can obtain in each period (28 days) will be determined by the proportion of each user’s transaction fees and holdings to the overall transaction fees and holdings.

For the current period, users can check their transaction fees, open interest and rewards at https://trade.dydx.exchange/portfolio/rewards.

For past periods, users can check this page: https://dydx.community/history/rewards.

7 days after the end of each period , users can claim rewards for transaction mining .

Market making mining

7.5% of DYDX tokens will be distributed to liquidity providers in each period (28 days) within five years, and 1,150,685 DYDX will be distributed in each period.

Any Ethereum address can earn these rewards, but it must provide more than 5% of pending order liquidity in the previous period.

The DYDX tokens that each liquidity provider can obtain in each period (28 days) will be determined by its market-making depth, bid-ask spread, current duration and the number of supported trading pairs.

7 days after the end of each period of rewards, liquidity providers can apply for token rewards through the API provided by dYdX.

Liquidity mining

Users can participate in this page: https://dydx.community/dashboard/pools/liquidity

cWgGnQUlfo7H8jv9Z56wkdhPSNe06QXurXm4Ky4J.png

Before the first pledge, the dYdX protocol must be allowed to use USDC.

Pledgers can start and exit the liquid staking pool at any time. DYDX’s rewards will also be calculated in real time based on the proportion of each user’s USDC in the overall liquidity pool and distributed to the staking users.

If the funds are to be withdrawn after the time period ends, the pledger must request the release of the pledged funds at least 14 days before the end of the time period. If the pledger does not request withdrawal, their pledge of DYDX will be transferred to the next period. You can do this on this page: https://dydx.community/dashboard/staking-pool/liquidity

Currently, the first batch of approved market makers include Wintermute, Amber Group, Kronos, Sixtant and DAT Trading. They have been actively making markets on the dYdX Layer 2 protocol this year.

Insurance pledge pool

The insurance pledge pool will be launched at 15:00 UTC on September 8, 2021 (23:00, September 8, Beijing time).

Users can participate in this page: dydx.community/dashboard/pools/safety

Ttaf9Ijp1UqgIfXK0u14IUIGTv1g8oc1ufXccorh.png

Before the first pledge, allow dYdX protocol to use DYDX

Pledgers can start and exit at any time, and DYDX rewards will also be calculated in real time and distributed to pledge users based on the proportion of each user’s DYDX in the overall liquidity pool.

If the funds are to be withdrawn after the time period ends, the pledger must request the release of the pledged funds at least 14 days before the end of the time period. If the pledger does not request withdrawal, their pledge of DYDX will be transferred to the next period. You can do this on this page: https://dydx.community/dashboard/staking-pool/liquidity

Attached dYdX related links:

DYDX Foundation homepage: https://dydx.foundation

How to obtain DYDX:

1. Retroactive mining (early users):

https://docs.dydx.community/dydx-governance/chinese/dydx-jie-shao#zhui-su-xing-wa-kuang

2. Transaction mining (all users)

https://docs.dydx.community/dydx-governance/chinese/dydx-jie-shao#jiao-yi-wa-kuang

3. Market maker mining (market maker):

https://docs.dydx.community/dydx-governance/chinese/dydx-jie-shao#zuo-shi-wa-kuang

4. Liquid staking pool (USDC pledge):

https://docs.dydx.community/dydx-governance/chinese/dydx-jie-shao#liu-dong-xing-zhi-ya-chi

5. Insurance pledge pool (Pledge DYDX):

https://docs.dydx.community/dydx-governance/chinese/dydx-jie-shao#bao-xian-zhi-ya-chi

More details (DYDX Chinese introduction):

https://dydx.foundation/blog/zh-CN/introducing-dydx-token

DYDX document:

https://docs.dydx.community/dydx-governance/chinese/dydx-jie-shao

Traceability mining and transaction mining to obtain DYDX quantity query:

http://trade.dydx.exchange/portfolio/rewards

Mobile betting pool address:

http://dydx.community/dashboard/staking-pool/liquidity

Insurance pledge pool address:

https://dydx.community/dashboard/staking-pool/safety

Governance voting link:

http://dydx.community/dashboard/

DYDX Forum:

https://forums.dydx.community/

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/one-article-to-understand-5-ways-to-get-dydx-governance-tokens/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Leave a Reply