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.

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Derivative exchanges

dYdX

# dYdX P/S ratio (fully diluted) Methodology

## 1. Overview

The dYdX P/S fully diluted ratio measures the protocol's valuation relative to its revenue generation by dividing the fully diluted market capitalization by annualized revenue. This metric provides insight into how the market values dYdX relative to its fee-generating trading activity across all versions of the protocol. The calculation treats all trading fees as protocol revenue since liquidity providers are compensated through bid-ask spreads rather than fee sharing.

## 2. Data sources

The calculation uses multiple data sources to capture dYdX's complete revenue picture and market valuation:

- **dYdX dYdX V4 match events**: On-chain `match` events from dYdX Chain containing maker and taker fee data in USDC quantum units
- **dYdX Chain transaction records**: Native blockchain transaction data including transaction fees and tips
- **Historical trading fee API data**: Hourly trading fee data from dYdX's API covering volume and fee information
- **Manual fee data**: Hand-curated daily fee amounts for early 2023 to fill data gaps
- **Legacy revenue data**: Historical revenue data from Fivetran covering pre-chain periods
- **End-of-day token price feeds**: CoinGecko daily price data for both original DYDX token and dYdX Chain token
- **Token supply data**: CoinGecko market data used for fully diluted market cap calculations

## 3. Step-by-step calculation

### Component A: Revenue calculation
- **Purpose**: Aggregate all revenue sources across dYdX protocol versions into daily USD amounts
- **Logic**: The calculation combines five distinct revenue streams. Manual fees cover early 2023 with hardcoded daily amounts. API trading fees are aggregated hourly then converted to daily snapshots by selecting fee values at 0, 1, or 2 UTC hours (representing 24-hour rolling totals). Legacy revenue data fills historical gaps from Fivetran integration. dYdX Chain transaction fees include both base fees and tips, converted from native tokens to USD using end-of-day exchange rates. dYdX V4 trading fees come from `match` events where maker and taker fees are extracted from quantum units and converted to USDC by dividing by 10^6. All revenue sources are treated as 100% protocol revenue since market makers earn through spreads rather than fee sharing.
- **Key fields**: `fee_amount` from various sources, `transaction_fee` and `transaction_tip` from chain data, `taker_order_fee_raw` and `maker_order_fee_raw` from dYdX V4 matches

### Component B: Fully diluted market cap calculation
- **Purpose**: Calculate the total market value using fully diluted token supply
- **Logic**: Market cap uses end-of-day token price feeds from CoinGecko combined with fully diluted token supply data. The calculation accounts for the token migration by using the original 'dydx' token data before November 27, 2023, and 'dydx-chain' token data afterward. The macro handles the fully diluted supply calculation and price multiplication to produce daily market cap values.
- **Key fields**: `price_usd` from CoinGecko feeds, token supply from market data, `daily_timestamp` for date boundaries

### Final aggregation
- **Combining components**: Revenue data is aggregated daily across all sources, with manual overrides taking precedence where specified. Market cap is calculated independently using the CoinGecko macro
- **Currency conversion**: Chain fees are converted to USD using end-of-day exchange rates, while USDC-denominated fees require no conversion. Legacy data and API fees are assumed to be in USD
- **Time aggregation**: All data is aggregated to daily boundaries with consistent UTC timezone handling. Hourly API data is converted to daily by selecting specific UTC hours that represent 24-hour rolling totals
- **Final calculation**: The P/S ratio divides annualized revenue (daily revenue × 365) by the fully diluted market cap for each day, providing a valuation multiple that shows how many times annual revenue the market cap represents

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

${market_cap_fully_diluted} / (rolling_avg(${revenue}, 30) * 365)

Fully diluted market cap relative to annualized revenue.

dYdXDYDX

P/S ratio (fully diluted)

P/S ratio (fully diluted)

Competitive landscape