Research Summary
The report discusses Dymension (DYM), a Layer 1 hub and network of standardized app-specific Layer 2s, known as RollApps. DYM aims to provide liquidity, security, and interoperability for RollApps, which are easy-to-deploy modular blockchains. The report also mentions the upcoming DYM airdrop and its potential impact on the market.
Key Takeaways
Dymension’s Structure and Functionality
- Dymension’s Composition: Dymension consists of the Dymension Hub (a Layer 1) and a network of standardized app-specific Layer 2s, known as RollApps. The Dymension Hub acts as a liquidity, security, and interoperability layer for the RollApps.
- Role of RollApps: RollApps are easy-to-deploy modular blockchains that use the Dymension Hub for securing their funds and Data Availability networks to publish transaction data. They also enable efficient swapping and token routing among RollApps.
- Use of IBC Protocol: Dymension uses the Inter-Blockchain Communication Protocol (IBC) to standardize the building or launching of a rollup, similar to how the ERC standard did for tokens on the Ethereum network. This approach is claimed to be more secure than the multisig bridging model commonly used in the Ethereum ecosystem.
Dymension’s RollApp Development Kit (RDK)
- Facilitating Developers: The Dymension framework significantly reduces friction for developers to come to market. Developers can deploy RollApps in a few clicks using the Dymension RollApp Development Kit (RDK), which allows anyone to build RollApps from an existing model with modules for on-chain governance, token issuance, and more.
Dymension’s Token and Valuation Expectations
- Genesis Rolldrop: The “Genesis Rolldrop” (or DYM airdrop) represents 7% of supply and will be airdropped to TIA, ATOM and OSMO stakers, select ETH L2 and Solana users, and holders of certain NFT collections. With 70 million tokens dropped of a 1 billion total supply, the airdrop represents a meaningful portion of supply.
- Market Expectations: DYM is already trading at around $3 on the pre-launch market on Aevo. At launch, there will be 14% of supply circulating which at a $1 billion market cap would equate to roughly $7/DYM. A $1 billion market cap would put DYM as a #72 ranked project.
Unclaimed DYM Airdrop
- Extra DYM Tokens: Not all eligible wallets claimed for the DYM airdrop, meaning that claimants will be receiving extra DYM tokens. For reference, midcurves like Taiki did not claim the Celestia airdrop and as a result, TIA claimers received 3x the amount when claims went live.
Actionable Insights
- Monitor Dymension’s Mainnet Launch: With over 13,000 RollApps deployed on testnet, there seems to be significant demand to experiment with the Dymension stack. Observing the post-mainnet deployments could provide insights into the genuine interest in Dymension.
- Consider the Potential of DYM Staking: There is speculation that $DYM stakers may receive airdrops from the RollApps that launch using Dymension as the Settlement Layer. This could potentially start a “stake TIA and DYM for airdrops” narrative.
- Assess the Impact of the DYM Airdrop: The upcoming DYM airdrop represents a significant portion of the total supply and could have a substantial impact on the market. It would be beneficial to assess the potential effects of this event.
