Ethereum-based DYDX ($ethDYDX) is a governance token that allows the dYdX community to truly govern the dYdX Layer 2 Protocol built on Ethereum ("dYdX v3"). By enabling shared control of dYdX v3, ethDYDX allows traders, liquidity providers, and partners of dYdX to work collectively towards an enhanced dYdX v3.
Wrapped Ethereum DYDX ($wethDYDX) is a wrapped version of ethDYDX obtained when a user interacts with the wethDYDX Smart Contract. More details about the wethDYDX token and the potential migration of ethDYDX from Ethereum to the dYdX v4 Open-Source Software ("dYdX Chain") can be found here.
$ethDYDX and $wethDYDX enable a robust ecosystem around governance and rewards — each designed to drive future growth and decentralization of dYdX v3, resulting in a better experience for users.