|
|
The logic behind DYDX's explosive surge: Token repositioning upgrade unlocks new potential earnings.
From now on, the DYDX staking community will share 100% of the protocol's revenue. According to OKX market data, decentralized derivative protocol (now perhaps called a network) dYdX (DYDX) saw a significant increase today, reaching a peak of over 4.1 USDT and currently trading at 3.94 USDT, with a 24-hour gain of 15.66%. The key event driving DYDX's current surge is not hard to find.
On the evening of November 13, the dYdX Chain governance proposal #1 to activate all trading markets was successfully passed. This means that dYdX Chain has transitioned to the Beta stage, and trading functionality is officially active on dYdX Chain. In other words, after nearly a year of anticipation, the v4 version of dYdX has successfully launched, allowing users to freely trade on the v4 market.
As a key milestone in the dYdX roadmap, the landing of v4 is undoubtedly a long-awaited positive development in the market. However, how much new potential this upgrade can bring to the DYDX token remains to be seen, and the market needs a more intuitive analysis.
In June of this year, dYdX announced a crucial update regarding the v4 version—the transition from the Ethereum ecosystem to the Cosmos ecosystem. The dYdX Chain, based on the Cosmos SDK, serves as the foundation for the v4 version.
The significance of this transformation lies in the upgraded positioning of DYDX. Originally, the ERC-20 version of DYDX on Ethereum (referred to as ethDYDX) only had utility for v3 version protocol governance but couldn't share protocol revenue. With the launch of the dYdX Chain, the DYDX mapped 1:1 after bridging from ethDYDX becomes the native token of the dYdX Chain Layer 1, unlocking more new utilities for DYDX beyond governance.
According to the dYdX Foundation, on the dYdX Chain, all fees collected by the protocol (including transaction fees priced in USDC, gas fees for transactions priced in DYDX or USDC) will be distributed to all participants staking DYDX, including Validators and Stakers. It's worth noting that 100% of the fee income will flow to the DYDX staking community, including DYDX and the stablecoin USDC.
Antonio Juliano, the founder of dYdX, mentioned that to ensure that the dYdX Chain remains controlled by the community, dYdX Trading, the development parent company, and its employees will not participate in staking DYDX.
About two weeks ago, dYdX Chain completed the mainnet genesis, activating DYDX on-chain staking. According to on-chain data, as of now, approximately 350 million ethDYDX tokens have migrated to the dYdX Chain, and the staked DYDX quantity is close to 10 million.
However, due to the recent activation of trading functionality on dYdX Chain, the overall trading volume is still relatively low. In the past 24 hours, there have been only 609 transactions, with open interest of about $10,000 and a total trading volume of only $30,000. Based on this data, the actual income share from DYDX staking can be temporarily negligible. Perhaps for this reason, the official staking interface of dYdX currently does not provide the expected staking yield (APR) for DYDX.
So, if dYdX v4 gradually scales up, what level of returns can DYDX expect? Theoretically, this data will be directly related to the overall staking rate of DYDX and the actual trading volume of the v4 market. Crypto hedge fund Ouroboros Capital once gave a prediction of 20% APR through calculations, but this is just one perspective, and the specific situation will depend on subsequent factual verification.
In conclusion, the landing of the v4 version has upgraded the token positioning of DYDX, unlocking new potential for earnings and improving market expectations for the token's value. |
|
Post time 23-12-2023 10:43:24