# dYdX Chain Staking market cap Methodology

## 1. Overview

Staking market cap measures the value of native tokens currently staked on a proof-of-stake blockchain. For dYdX Chain, this metric reflects the total capital helping to secure the network through the delegation of assets to validators. It serves as a key indicator of the economic security and decentralization of the dYdX Chain infrastructure.

## 2. Data sources

- **Blockchain events**: `delegate` and `unbond` events from `message_events`, covering dYdX Chain
- **External data**: End-of-day price feeds for the native asset

## 3. Step-by-step calculation

### Component A: dYdX Chain delegation and undelegation tracking

- **Purpose**: Capture all staking-related movements on the dYdX Chain
- **Logic**: `delegate` and `unbond` events are parsed from `message_events`. Staking amounts are extracted from the event attributes by isolating the numerical value from the asset-specific suffix. These amounts are then associated with specific validator addresses and block timestamps to track granular activity.
- **Key fields**: `amount`, `validator`, `block_timestamp`

### Component B: Staked balance aggregation

- **Purpose**: Determine the daily cumulative balance of staked assets
- **Logic**: Net daily changes are calculated by aggregating `delegate` event amounts as positive values and `unbond` event amounts as negative values. A cumulative running total is applied to these daily changes to derive the total inventory of staked assets. The resulting time series is adjusted using forward-filling logic to ensure a continuous daily balance record.
- **Key fields**: `amount`

### Component C: Normalization and USD conversion

- **Purpose**: Normalize the staked balance and convert the value to USD
- **Logic**: The total staked balance is normalized by decimal precision. This normalized asset quantity is multiplied by end-of-day price feeds. The final staking market cap is represented as a daily USD value, calculated using UTC day boundaries.
- **Key fields**: `staking_market_cap`, `price_usd`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of native tokens currently staked to secure a proof-of-stake network.

Staking market cap

Blockchains (L1)

Market makers offer trades through order book & make money on bid-ask spreads (supply-side fees).

dYdX is a non-custodial trading and derivatives protocol initially built on Ethereum and later expanded to their own blcokchain built on top of the Cosmos SDK. dYdX was founded by Antonio Juliano and launched in 2017.

DYDX tokenholders own and govern the protocol. dYdX Trading Inc. currently takes all of the total trading fees paid by traders (revenue). dYdX’s investors include a16z, Polychain, The Spartan Group, etc.

dYdX Chain

Staking market cap

Staking market cap

Chain breakdown