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A Layer-2 Decentralized Exchange.
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dYdX is a layer-2 decentralized exchange that supports perpetual, margin trading, and spot trading, as well as lending, and borrowing. dYdX runs on smart contracts on the Ethereum blockchain, and allows users to trade with no intermediaries.
DYDX is the native utility token of the platform and is used in the following functions:
Governance: DYDX token holders can submit and vote on network governance proposals.
Staking: Users can stake DYDX tokens to the Safety Module to earn staking rewards in DYDX tokens. Note that staked DYDX may be slashed as a result of a shortfall event, such as exchange solvency, smart contract attacks, or other events that the dYdX governance deems to have resulted in a shortfall.
Fee discounts: DYDX token holders enjoy lower transaction fees based on their DYDX holdings.
The project has minted 1,000,000,000 DYDX which will become accessible over five years. The token distribution are as follows:
Community: 50% of the total tokens supply has been allocated to the community. These include trading rewards, retroactive mining rewards, liquidity provider rewards, the community treasury, and more.
Past investors: 27.73% of the total token supply.
Founders, employees, advisors, and consultants of dYdX Trading or dYdX Foundation: 15.27% of the total token supply.
Future employees and consultants of dYdX Trading or dYdX Foundation: 7.00% of the total token supply.
Note that 7.50% of the initial token supply (75,000,000 DYDX) will be distributed to past users of any dYdX protocol who complete certain trading milestones on the protocol.
As at September 9th 2021, the total supply of DYDX is 1,000,000,000 and the current circulating supply is ~8.11%.
Learn more about the token distribution of DYDX here.