With the Ethereum-based governance token DYDX ($ethDYDX), the dYdX community may control the Layer 2 Protocol ("dYdX v3"). EthDYDX is migrating to dYdX. This article explains how to connect ethDYDX to dYdX Chain DYDX for staking, security, and governance.



<p>EtherDYDX is the Ethereum protocol layer 2 governance token. EthDYDX allows traders, liquidity providers, and partners to share power to develop dYdX v3.</p><p>StarkWare's StarkEx scalability engine layer 2 supports cross-margined perpetual trading. Expanding the protocol may improve transaction speed, gas prices, trading fees, and minimum deal sizes for dYdX.</p><p>At 15:00:00 UTC on August 3, 2021, 1,000,000,000 ethDYDX were minted and distributed over five years.</p><h2>Who Are the Founders of dYdX?</h2><p>Antonio Juliano is a programmer who knows a lot about blockchain. He started and runs dYdX Trading Inc. He got into the crypto business after becoming a software engineer at Coinbase in 2015. Juliano, who graduated from Princeton University with a degree in computer science, started dYdX in early 2017.</p><h3>What Makes dYdX Unique?</h3><p>It is possible for the network to grow because it uses a type of zero-knowledge rollup called zkSTARKS. While verifying a group of deals off-chain, the system gets proofs. After that, these proofs are sent back to the blockchain and checked by a smart contract. Because of zkSTARKS, it is possible to move processes that cost a lot of money off of the mainnet without affecting decentralization.</p><h3>What is the Allocation of ethDYDX?</h3><p>A total of 1,000,000,000 ethDYDX have been minted and started to become accessible over five (5) years, on August 3rd, 2021, at 15:00:00 UTC.</p><p>The five-year allocation of the total supply of ethDYDX was initially as follows:</p><ul><li>27.7% is allocated to Investors</li><li>14.5% is allocated to User Trading Rewards</li><li>15.3% is allocated to Employees and Consultants of dYdX Trading or Foundation</li><li>5.0% is allocated to Retroactive Rewards</li><li>5.2% is allocated to Liquidity Provider Rewards</li><li>7.0% is allocated to Future Employees &amp; Consultants of dYdX</li><li>24.2% is allocated to Community Treasury</li><li>0.6% is allocated to Liquidity Staking Pool</li><li>0.5% is allocated to the Safety Staking Pool</li></ul><p>Since the launch of ethDYDX, several governance proposals have resulted in changes to the initial allocation.</p><h3>How is the dYdX Network Secured?</h3><p>DYDX is an ERC-20 coin that is used on the mainnet of Ethereum. StarkWare's ZK-STARKS technology is used to build dYdX's layer 2 scaling solution, and the Ethereum blockchain is used to check transaction proofs.</p><h3>When Will DYDX Trading Begin?</h3><p>DYDX token first became available for purchase in September 2021.</p><p>When the dYdX Chain Open Source Software came out on June 22, 2022, it was the next version of the dYdX system. The dYdX Chain is a proof-of-stake blockchain network, which means that validators must stake a Layer 1 ("L1") protocol token to keep the chain safe and stakers must stake a token to run it. People who own L1 tokens can run or put their tokens on a validator to keep the network safe and in order. ethDYDX moves from Ethereum to dYdX with the help of the wethDYDX Smart Contract.</p><p><strong>The following tasks are automatically and without permission done by WethDYDX:&nbsp;</strong></p><ol><li>Smart Contracts: Get ethDYDX coins sent by users and lock them permanently in the wethDYDX&nbsp;</li><li>Smart Contract; Send the user a wrapped version of the Ethereum-based DYDX token called "wethDYDX" in a 1:1 ratio on Ethereum.&nbsp;</li><li>Once Step 1 is done and the ethDYDX is permanently locked in the Smart Contract, dYdX Chain validators can read and ingest the information in the wethDYDX Smart Contract to distribute DYDX to users.&nbsp;</li></ol><p><strong>- 14.5% (144,693,506 $ethDYDX) based on the Trading Rewards Formula</strong></p><ul><li>In DIP 16 and DIP 20, the dYdX community voted to reduce trading rewards by a total of 2.3M $ethDYDX. (958,904 $ethDYDX from DIP 16 and 1,294,520 $ethDYDX from DIP 20). The 2.3M $ethDYDX will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.</li><li>In DIP 29, the dYdX community voted to reduce trading rewards by ⅓ from Epoch 30-32 on dYdX v3 to the following values:</li></ul><ol><li>Epoch 30: 1,054,795 $ethDYDX</li><li>Epoch 31: 527,398 $ethDYDX</li><li>Epoch 32: 0 $ethDYDX</li></ol>

dYdX (ethDYDX)

Ethereum

Arcium

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dYdX (ethDYDX) (ETHDYDX) 30 Days Historical Price Data

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