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.

governance

github

twitter

discord

etherscan

website

Derivative exchanges

dYdX

# dYdX Number of validators Methodology

## 1. Overview

The dYdX number of validators metric measures the daily count of unique validators that participated in block production on the dYdX blockchain. This metric tracks validator network participation and decentralization by counting how many distinct validators proposed blocks during each 24-hour period. The calculation aggregates block proposer data to provide insights into the active validator set and network security through validator participation rates.

## 2. Data sources

This metric uses the following raw data sources:
- **dYdX blockchain block data**: Complete record of all blocks produced on the dYdX blockchain, including block timestamps, heights, and metadata
- **Validator proposer records**: Block proposer addresses that identify which validator was responsible for producing each specific block
- **Block timestamp data**: Precise timing information for each block to enable daily aggregation boundaries

## 3. Step-by-step calculation

### Component A: Block data extraction
- **Purpose**: Extract relevant block information from the dYdX blockchain
- **Logic**: Pull all block records from the dYdX blockchain, extracting the block timestamp, block height, and most importantly the proposer address. The proposer address field identifies which validator was responsible for proposing each specific block to the network.
- **Key fields**: `block_timestamp` for time-based aggregation, `block_number` for block identification, and `validator` (the proposer address) for counting unique validators

### Component B: Daily validator aggregation
- **Purpose**: Count distinct validators active each day
- **Logic**: Group all blocks by daily time boundaries using timestamp truncation to create 24-hour periods starting at midnight UTC. Within each day, count the number of unique validator addresses that proposed at least one block. This provides a daily measure of how many validators were actively participating in block production.
- **Key fields**: Daily timestamp boundaries and `number_of_validators` representing the distinct count of validator addresses per day

### Final aggregation
- **Combining components**: The aggregated daily validator counts are enhanced with standard metadata fields including market sector classification as layer-1 blockchain, business segment as blockchain infrastructure, product identifier as dYdX Chain, and chain identifier as dydx
- **Data gap handling**: Apply a fill zeros strategy to ensure that any days without validator activity are represented as zero rather than missing data points, maintaining data continuity for analysis
- **Final calculation**: The final metric value represents the count of distinct validator addresses that proposed at least one block during each 24-hour period, providing a daily measure of active validator participation in the dYdX network

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

Number of active validators securing the network.

dYdXDYDX

Number of validators

Number of validators

Competitive landscape

Chain breakdown