Research Summary
The report discusses the launch of dYdX V4’s complete source code, marking the start of a fully decentralized perpetual trading platform. It also highlights the upcoming $DYDX unlocks, which could potentially flood the market with tokens. The dYdX team has planned several catalytic events to stimulate demand for their token, including the return of $DYDX staking and profit sharing for $DYDX stakers.
Key Takeaways
Launch of dYdX V4
- Decentralized Trading Platform: The report highlights the launch of dYdX V4’s complete source code, marking the start of a fully decentralized perpetual trading platform. The latest V4 iteration was launched as a Cosmos-based appchain, representing a migration from being an Ethereum L2.
Upcoming $DYDX Unlocks
- Market Impact: More than 45% of $DYDX circulating supply worth $360.0M is set to be unlocked, with investors receiving the largest allocation at 25% of circulating supply worth $199.7M. This could potentially flood the market with tokens.
Token Price Calculation
- Investor Profit: The initial token price is calculated at $0.3137 per $DYDX, which puts investors up by 665% from their initial investments.
Catalytic Events
- Stimulating Demand: To reduce the impact from the massive flooding of tokens on the market, the dYdX team has lined up multiple catalytic events to facilitate demand for their token. The most meaningful updates were the return of $DYDX staking and profit sharing for $DYDX stakers.
Revenue Sharing Projections
- Staker Returns: Projections indicate that stakers will earn decent yields. Assuming a 10% growth in annual protocol revenue and that all revenue is directed to stakers, a 30% $DYDX staking ratio could see returns of 35.5%.
Actionable Insights
- Investigate the Potential of $DYDX: With the upcoming $DYDX unlocks and the return of $DYDX staking, there could be potential for significant returns. However, the impact of the massive flooding of tokens on the market should be considered.
- Consider the Impact of Revenue Sharing: The new revenue sharing strategy could potentially increase the profitability for $DYDX stakers. This could be a compelling catalyst to induce net-buy pressure on the token.
- Monitor the Performance of dYdX V4: The launch of dYdX V4’s complete source code marks the start of a fully decentralized perpetual trading platform. The performance of this platform could have significant implications for the future of decentralized trading.
