What is dYdX?

dYdX is a leading decentralized exchange that currently supports perpetual trading. dYdX runs on smart contracts on the Ethereum blockchain, and allows users to trade with no intermediaries.

DYDX Token:

As a utility token, $DYDX is used to pay trading fees and staking earn yields. This serves as a liquidity redundancy layer for extreme market conditions.

A total of 1,000,000,000 DYDX have been minted, and will become accessible over five (5) years, starting on August 3rd, 2021, at 15:00:00 UTC. The initial five-year allocation of the total supply of DYDX is as follows:

Can the allocation of DYDX change?

Yes, the dYdX community can change any of the rewards and pools existing at launch. So far, the dYdX community has voted to reduce trading rewards by 25%, set rewards for staking USDC to 0, and set rewards for staking DYDX to 0.

In DIP 16, the dYdX community voted in support of reducing trading rewards by 25%. As a result, trading rewards distributed in a given epoch were reduced from 3,835,616 DYDX to 2,876,712 DYDX in Epoch 15. The remaining 958,904 DYDX will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote. In DIP 14, the dYdX community voted to set the rewards associated with staking USDC to 0. The 383,562 DYDX previously distirbuted to USDC stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

In DIP 17, the dYdX community voted to set the rewards associated with staking DYDX to 0. The 383,562 DYDX previously distirbuted to DYDX stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote

Can new DYDX tokens be minted?

Starting five years after launch, a maximum perpetual inflation rate of 2% per year can be used to increase the supply of DYDX, ensuring the community has the resources to continue contributing to the dYdX Layer 2 Protocol.

Beginning on July 14th, 2026 at 15:00:00 UTC, dYdX governance can decide the maximum supply of new tokens to be minted, up to the maximum inflation rate of 2% per year at each mint. Only one mint is possible in a given 365 day period. All newly issued tokens will be allocated by governance and will vest immediately. These newly issued tokens can then be sent to any address specified.

What is the lockup for DYDX issued to investors, existing and future employees, and consultants?

DYDX will be issued to stockholders, directors, officers, employees, and consultants of dYdX Trading and the Foundation. All DYDX distributed to these parties will initially be subject to contractual agreements, off-chain, mandating a lockup according to which:

• 30% of DYDX holdings will unlock after 18 months post-launch;
• 40% will unlock equally from month 19 through month 24;
• 20% will unlock equally from month 25 through month 36;
• 10% will unlock equally from month 37 through month 48.

All employees and consultants also will be subject to various vesting schedules that could result in them losing their rights to DYDX. No employee’s or consultant’s receipt of DYDX is, or will in the future be, based on providing services related to the Protocol or other services that may benefit the Protocol. Instead, employees and consultants may receive DYDX for services that benefit only dYdX Trading, the dYdX Foundation or another party.

Regardless of any lockup on DYDX, investors and prior employees or consultants of dYdX Trading or the Foundation may use DYDX to make proposals, delegate votes, or vote on proposals related to the Protocol. Current employees and consultants of dYdX Trading or the Foundation will initially not make any proposals or participate in any votes but may do so in the future. Current employees and consultants of dYdX Trading or the Foundation may delegate votes without attempting to influence voting outcomes.

All investors are required to comply with the transfer restriction enforced through contractual agreements with the dYdX Foundation. The dYdX Foundation tracks wallet addresses to determine whether any transfers have been made in violation of that restriction.

While investors are technically and legally allowed to stake their DYDX to the Safety Module, in the event of a Shortfall Event and slashing of DYDX, investors would get slashed like every one else. At this time, they would be in default against their obligations. Investors would be required to purchase again any tokens that were transferred as a result of slashing so that everyone is in the same position. For this reason, we ask all investors to refrain from staking and request to withdraw any funds currently staked to the Safety Module.

The dYdX Foundation has expressed its willingness to bring legal action against investors who do not comply with these requirements.

Read More (& Source)

Dashboard Introduction and Methodology

In the next month, one of the major events of DYDX will happen, where 105% of this token’s circulating supply will be distributed to investors and team members.

So, in this dashboard, I am going to mainly analyze the behavior of $DYDX token holders to see how they are getting ready for this big event and what are they doing with their $DYDX token.

> In the Cryptocurrency market, usually after the release of projects’ tokens, their price declines dramatically (according to the supply and demand law). But recently we have seen some projects (such as Axie Infinitiy ($AXS), which did its token release today (July 23), before performing the release, they manually (with some manipulation!) raise the price of the token, So, after the release of tokens, the drop on the token’s price would not be so much significant!

In this dashboard, I am going to:

• Analyze The $DYDX Token Price Over Time.
• Analyze $DYDX Holders and Their Balance & Over-Time Evolution
• Analyze $DYDX Transfer Activity Within Ethereum Mainnet and Also Its Transfers From/To Centralized Exchanges.
• Analyze $DYDX Token Swap Activity Within Ethereum Decentralized Exchanges And The Buying/Selling Behavior of Swappers.
• Analyze $DYDX Staking Activity.
• Analyze Top Destinations of $DYDX Token Transactions And Their Changing Over Time.

The main tables that I have used for this analysis are: Flipside’s Ethereum core tables such as ethereum.core.fact_hourly_token_prices, ethereum.core.ez_current_balances, ethereum.core.ez_token_transfers, ethereum.core.dim_labels, ethereum.core.ez_dex_swaps & ethereum.core.fact_event_logs.

• DYDX Token Contract Address: 0x92d6c1e31e14520e676a687f0a93788b716beff5
• StakedDYDX Token Contract Address and Stake Proxy: 0x65f7ba4ec257af7c55fd5854e5f6356bbd0fb8ec
• DYDX Claim Reward Proxy: 0x0fd829c3365a225fb9226e75c97c3a114bd3199e

In this dashboard, a Time_Frame parameter is provided in order to limit some of the results from your desirable date till today (for example the default time_frame is 90 and it means most data are analyzed since 90 days ago till today)

$DYDX Token Price

According to the left chart, the price of $DYDX token has decreased over time.

During the recent months, we can see $DYDX is well-keeping itself and has not experienced heavy price crash.

For example, after the FTX collapse, $DYDX token experienced an almost 20% raise in its price (as well as many other Decentralized Exchange Tokens).

Also, Since the start of the year 2023 and because of the whole cryptocurrency market recovery and price raise (including Bitcoin as the largest crypto), DYDX token has also experienced some growth in its price over time. This token price has raised from $1 (on 1st January) to $1.60 (on 23rd January) which shows almost 60% raise in only 3 weeks.

Technically, DYDX price can fall in price after the next-month major event and also because of its recent raise in price. So, I, Personally do not suggest users to buy DYDX token at this time and maybe wait for the event and see how this token will react to it and then trade it with more safety.

$DYDX Holders Analysis

At the time of this analysis (Jan. 23) There are 34.7k unique Ethereum wallets who are holding DYDX token and their average balance is 28.8k while their median balance is 40 $DYDX.

Also using the provided Time_Frame parameter, you can enter your desirable number in order to see the number of holders and also their average & median $DYDX balance in that timespan.

According to the above chart, more than 34% of DYDX holders are only holding less than 10 $DYDX in their wallet followed by 30% of holders who have 10 - 100 $DYDX balance. There are only 2.1% of DYDX holders with more than 10,000 $DYDX balance in their wallet (can be called $DYDX Whales).

Also by using the provided Time_Frame parameter, you can enter you desirable number to see the distribution of $DYDX holders by their balance in the selected timespan.

According to the above left chart, The wallet which belongs to the DYDX Rewards Treasury has the highest $DYDX balance with more than 269M. The next two ranks (2nd & 3rd) belong to some regular wallets and DYDX Community Treasuries are on the 4th and 5th rank while the Binance Exchange has the 6th highest $DYDX balance.

Also, on the right chart, we can see the evolution of $DYDX holders over time and we can see some volatiles in their number during the recent months especially after FTX collapse in November 2022.

The number of new daily $DYDX holders during the recent days is slightly decreasing compared to November 2022 and maybe it’s because there are fewer people who tend to invest in a token that has this distribution event in the near future but anyway there are many users who keep purchasing DYDX regardless of its major event.

Totally, $DYDX holders seem to not selling into the hype and not panic-sell their assets.

$DYDX Transfers Analysis

According to the above chart, $DYDX transfer activtity has decreased significantly compared to the November and December 2022 but the number and volume of transafers is almost increasing again during recent days especially after 20th January 2023. We can also see that average volume of transfers is increasing during recent days which shows the increasing activity of DYDX holders before the days leading to the Major event. On the last Normalized chart, we can see that number of transactions with high DYDX volume is slightly increasing over time and on the other hand, the number of transactions with less than 10 $DYDX volume is decreasing over time.

Based on the above and left chart, the number and volume of DYDX flow to/from CEXs has decreased significantly compared to November and December 2022. But again during the recent days, we can see some uprising trend in the number and especially the volume of $DYDX transfers to/from CEXs as time goes on.

The interesting thing is that the share of DYDX transfers TO CEXs is increasing compared to the Transfers FROM CEXs especially volume-wise. This means that majority of DYDX users are transferring their token from their wallet to Centralized Exchanges maybe in order to sell them before the next-month major events and also after a significant price raise during the recent days.

Transfers To/From Centralized Exchanges (CEX)

In this part, I have excluded transfers within CEXs. (transfers which their source and destination are both CEX wallet addresses).

$DYDX Swap Activity

On the above charts, we can see the daily DYDX transfers to (sell), from (buy) CEXs over time. Its clearly obvious that during the first days of the chart, there were high spikes of transfers FROM CEXs (buy pressure of DYDX token) but after a while and especially after mid-december 2022, the share of transfers to CEXs (sell pressure) have increased significnatly to the extent that we can see total net volume of $DYDX transfers to/from CEXs is now negative which means the higher sell pressure of this token in CEXs.

In the DEXs, we can see that number of DYDX swaps and also active swappers have decreased compared to the November and December 2022. But the interesting thing is that the volume of swaps (both from & to DYDX) and also the average volume of DYDX swaps is increasing as time goes on and we can see some huge high spikes during the recent days in the volume charts with the highest spike on Jan.11 .

The number of swaps from DYDX (selling it) has slightly increased over time which means more sell activity for this token in DEXs especially during recent days.

But, the volume of swaps from DYDX has almost equal share with the volume of swaps to DYDX over-time and we can not see a heavy sell or buy pressure of this token in DEXs during the recent days.

On the above chart, we can see the Net daily volume of swaps from/to DYDX over time in ethereum DEXs and as we see, as time goes on, the volume of swaps from this token (sell pressure) is very slightly increasing and resulted in the total negative trend line in the right chart which shows the higher sell pressure of DYDX compared to its buy pressure.

$DYDX Staking

Whenever someone stake DYDX token, they receive a stakedDYDX token. So, we can use balance_table in order to calculate the number and also volume of DYDX stakers by their StakedDYDX token balance.

According to the left data and above methodology, there are currently 3590 unique DYDX stakers and the total staked $DYDX is 10.84M.

The average staked volume of $DYDX stakers is 302 DYDX.

On the above and left charts, we can clearly see that the number and volume of Unstake and also Reward Claiming of DYDX stakers is increasing over time and are totally overtaking the number and volume of stake transactions via this token.

So, we can say that many users are getting ready for the proper sharp-movements of DYDX token in the near future (major event in the next month) by unstaking it from staking pools and also claiming their unclaimed staking rewards. (as u may know, unstaking process takes some days to happen and there is almost 3 days difference between order to unstake & actual unstake action)

Top Destinations of $DYDX Transactions

And on the above and left charts, you can see the top 5 destinations of DYDX transactions on each week over time.

As mentioned earlier, dYdX projects are the most popular destinations of $DYDX token transactions.

During the recent weeks, we can see some increasing share of destinations such as DYDX Stake Protocol or Uniswap and Kraken Exchange Deployer over time.

Summary and Conclusion

• Based on the above analysis, DYDX token price has increased by almost 70% during the recent 3 weeks and the main reason can be the overall recovery of the Cryptocurrency market. This token has well-maintained its value after FTX collapse to the extent that its price has even experienced growth like many other DEX tokens in this timespan.

• I personally do not suggest ppl to buy $DYDX token at this price after a big pump in only 21 days and also some days prior to its major upgrade.

• The number of $DYDX holders has not decreased/increased significantly during the recent days and this shows the well-management of $DYDX holders over their feelings and excitement and they have not performed panic-sell / buy into the hype because of its major event.

• Overall $DYDX activity and volume of transactions via this token have decreased significantly compared to November and December 2022 but again after 20th January, we have seen some movements on this token’s activity within Ethereum chain.

• The number and especially volume of DYDX transfer TO CEXs (selling it) has increased slightly during the recent days and maybe this is because DYDX holders tend to sell their token in centralized exchanges after a big pump during the recent weeks and also before its major upgrade in the near future in order to stay away from potential volatiles.

• The volume of $DYDX swaps has increased significantly during the recent weeks compared to the days and weeks before. The share of swaps from DYDX (selling it) has increased slightly over the recent weeks which shows the slightly increasing sell-pressure of $DYDX during the days prior to its major upgrade.

• Unstaking and also Claiming Reward Activity of $DYDX token has increased significantly during the recent weeks and maybe mainly because ppl want to be ready to sell/perform other actions with their $DYDX token during the next important days before the major upgrade.

• The number of interactions with DYDX protocols such as Staking, Claiming Reward Proxy has increased over the recent weeks. We have also seen the majority of DYDX transactions’ destinations was decentralized exchanges such as Uniswap and 1inch.

• based on the liquidity analysis of DYDX in centralized exchanges, there can be a violent move for this token. $DYDX 1% Market depth in Binance (total in USDT and BUSD pairs) has halved in the past month, while OKX and other exchanges have been relatively flat.

• Totally, in my opinion, DYDX holders are not doing so high panic activities via their token in recent days and they are well-controlling themselves in the days prior to the major upgrade.

• In the Cryptocurrency market, usually after the release of projects’ tokens, their price declines dramatically (according to the supply and demand law). But recently we have seen some projects (such as Axie Infinity ($AXS), which did its token release today (July 23), before performing the release, they manually (with some manipulation!) raise the price of the token, So, after the release of tokens, the drop on the token’s price would not be so much significant!

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Discord: Ali3N#8546 Twitter: Alik_110 Email: Alik110.72@Gmail.com

According to the above charts, DYDX token and also its claim & staking proxies are the most popular destinations of $DYDX token transactions in all terms of number of transactions, users and also volume of actions. We can see some popular protocols such as Uniswap, 1inch, Metamask and Kraken Exchange on the next ranks.

Totally, much has been said about the big release of DYDX in next month and based on the liquidity analysis, there can be a violent move for this token.

$DYDX 1% Market depth in Binance (total in USDT and BUSD pairs) has halved in the past month, while OKX and other exchanges have been relatively flat.