Links

Trading Rewards

Overview of the Trading Rewards program.
25.00% of the initial token supply (250,000,000 DYDX) was allocated to be distributed to users who trade on the dYdX Layer 2 Protocol based on fees paid. 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.
Objectives
  • Incentivize all traders to use the dYdX Layer 2 Protocol.
  • Accelerate market liquidity and overall product usage.

Overview

Fees paid and estimated rewards in a given epoch
DYDX will be distributed to traders based on fees paid on the dYdX Layer 2 Protocol. DYDX will be distributed on a 28-day epoch basis over five years and is not subject to any vesting or lockups. 2,876,712 DYDX will be distributed per epoch.
With the community voting to reduce trading rewards by 25% from 3,835,616 DYDX to 2,876,712 DYDX, the remaining 958,904 DYDX that accrues in the Rewards Treasury can be used/directed by the dYdX community with a governance vote.
r=R×wnwn  ,n=1,2...kr=R\times \frac{w}{\sum\limits _{n} w_{n}} \ \ ,n=1,2...k
Term
Definition
r
Reward for a specific trader.
R
Total reward to be split between all traders in the pool for the epoch.
f
Total fees paid by a trader in this epoch.
w
Individual trader score.
nwn{\sum\limits _{n} w_{n}}
Sum of all trader scores.
k
Total number of traders in this epoch.
In DIP-13, the dYdX Community voted to simplify the formula to be based on total fees paid by a trader in a given epoch.

FAQ

Who is eligible for trading rewards?

All traders on the dYdX Layer 2 protocol are eligible to receive DYDX as trading rewards.
The dYdX Layer 2 Protocol is not available to traders in the United States or Restricted Territories, as defined in dYdX Trading Inc.’s Terms of Use.

How much DYDX did I earn in the Trading Rewards program?

In the current epoch, users can see fees paid and estimated trading rewards at trade.dydx.exchange/portfolio/rewards where users' trading data exists.
Fees paid and estimated rewards in a given epoch
Rewards from past epochs can be viewed at dydx.community/history/rewards.

How do I claim my Trading Rewards? When can I withdraw and transfer my earned DYDX?

Earned DYDX tokens via Trading Rewards will be transferable at the end of each epoch. DYDX token holders are required to wait approximately 7 days (Waiting Period) after the end of the epoch to claim their DYDX tokens.
After the 7-day waiting period, any community member can call the Write function on theupdateRoot parameter on the Merkle Distributor contract to make DYDX rewards claimable.
Steps:
  1. 1.
    On the Merkle Distributor contract page on Etherscan, click on the Contract tab, and select Write as Proxy.
  2. 2.
    Click on the Connect to Web3 button and connect your Web3 Wallet.
3. Scroll down to the updateRoot parameter, and click on the Write button.
This transaction would require some ETH for gas fees, and will the transaction will fail if:
  • The 7-day waiting period is still in effect, or
  • A community member has already successfully called the updateRoot parameter on the Merkle Distributor contract.
Once the transaction is finalized, traders can claim their Trading Rewards here. Users will need to click on Claim, sign a transaction, and pay gas fees to claim DYDX.
Portfolio overview of rewards