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 Token incentives Methodology

## 1. Overview

DYDX token incentives measure the total USD value of DYDX tokens distributed as rewards across the dYdX ecosystem on a daily basis. This metric combines two distinct types of token distributions: user-claimed rewards from Ethereum-based staking and safety contracts, and community treasury spending on the dYdX Chain. The metric answers the business question of how much value in DYDX tokens is being distributed to incentivize participation in the dYdX protocol ecosystem.

## 2. Data sources

The calculation draws from several raw data sources:
- **Ethereum blockchain events**: Parsed smart contract event logs from dYdX v1 reward distribution contracts including liquidity staking, safety module, and merkle distributor contracts
- **dYdX Chain blockchain data**: Native blockchain events and transaction data from the dYdX Chain, specifically `coin_spent` events from the community treasury
- **Token metadata**: DYDX token contract addresses and decimal configurations for both Ethereum and dYdX Chain representations
- **External price feeds**: End-of-day price feeds for DYDX token USD conversion via CoinGecko integration

## 3. Step-by-step calculation

### Component A: Ethereum reward claims
- **Purpose**: Captures DYDX token rewards claimed by users from Ethereum-based staking and reward contracts
- **Logic**: Extracts data from three specific contract events: `LiquidityStaking_ClaimedRewards_event`, `SafetyModuleV2_ClaimedRewards_event`, and `MerkleDistributor_RewardsClaimed_event`. Filters events to focus on the DYDX token contract address `0x92d6c1e31e14520e676a687f0a93788b716beff5`. Excludes rewards claimed by or returned to the Community Treasury address `0x95eabb0248d013b9f59c5d5256ce11b0a93788b716beff5` to prevent double-counting of unclaimed rewards that get recycled back to the treasury.
- **Key fields**: `block_timestamp` for daily aggregation, `account_address` for recipient identification, `amount` for reward quantity, and contract event metadata

### Component B: dYdX Chain treasury spending
- **Purpose**: Captures DYDX token incentives distributed directly from the dYdX Chain community treasury
- **Logic**: Monitors `coin_spent` blockchain events from the dYdX Chain where the spender is the community treasury address `dydx15ztc7xy42tn2ukkc0qjthkucw9ac63pgp70urn`. Uses regular expression parsing to extract token amounts from event attribute strings, specifically matching amounts suffixed with `adydx` denomination. Converts amounts from microunits to base units by dividing by 10^18. Aggregates spending events daily by block timestamp.
- **Key fields**: `block_timestamp` for timing, `event_attributes` containing amount and token denomination, `spender` address for treasury identification

### Currency conversion
Both components undergo USD conversion using end-of-day DYDX token price feeds. The Ethereum component uses the standard `convert_to_usd_and_correct_decimals` macro with decimal correction enabled. The Chain component uses CoinGecko price feeds with the `dydx-chain` identifier for USD conversion.

### Final aggregation
- **Combining components**: The two components are combined using a UNION ALL operation, maintaining separate daily records for each source type while using consistent schema fields including `timestamp`, `product_id`, `chain_id`, and `token_incentives`
- **Time aggregation**: All data is aggregated to daily boundaries using `timestamp_trunc` with day granularity
- **Final calculation**: The final metric represents the sum of USD-converted DYDX token incentives from both Ethereum reward claims and dYdX Chain treasury distributions. A zero-fill strategy is applied to ensure continuous daily time series data with no gaps, where missing dates are filled with zero values rather than being omitted.

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

Value of native tokens distributed as incentives.

dYdXDYDX

Token incentives

Token incentives

Competitive landscape

Chain breakdown