The decentralized finance (defi) protocol, Dydx, has officially launched version 5.0.0 of its blockchain software, introducing innovative trading features aimed at enhancing market dynamics and user control. This update, approved by the Dydx community, includes the implementation of isolated markets and margins, designed to refine risk management and collateral usage. Dydx Chain Launches Upgrade According […]
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dYdX Trading Inc Founder Antonio Juliano Steps Down As CEO, Token Takes a Hit
Antonio Juliano, the founder of dYdX Trading Inc., has announced his decision to “step down” as Chief Executive Officer (CEO), citing a mix of “personal and professional reasons.”
This move marks a significant change for the company behind the decentralized derivatives exchange dYdX. Juliano will transition to the roles of Chairman and President, with Ivo Crnkovic-Rubsamen set to take over as CEO.
Juliano Reflects On His Tenure And The Evolution Of dYdX
Juliano’s tenure as CEO saw dYdX grow into a prominent player in the decentralized finance (DeFi) sector, especially in derivatives trading.
Reflecting on his journey since the dYdX whitepaper in 2017, Juliano shared in the announcement that moments of “overwhelming” pressure made him consider stepping aside.
Juliano noted:
For my own part in this journey, I too have come far. I feel as though I’ve been gifted (and endured) a lifetime’s worth of adventure and growth since solo founding dYdX at 24. Chris Dixon once told me “founding is an emotional challenge disguised as an intellectual one”. I have now lived this, and know it to be true. dYdX has given me the rollercoaster of intense experiences from ibar, to excitement, to elation, to desolation. There have been times, many of them, when l’ve felt so overwhelmed I wanted to leave.
Notably, Juliano’s decision to change roles, as highlighted in the announcement, comes from a place of “personal satisfaction” and the “realization” that while he is irreplaceable as the founder, the role of CEO can be handed over to someone else.
Today, @AntonioMJuliano, announced that he is transitioning from CEO of dYdX Trading Inc. to the role of President and Chairman. Antonio’s product vision, leadership, and relentless dedication over the past 7 years have transformed dYdX from an idea into one of the largest DeFi… https://t.co/iUdSmjtQ5T
— dYdX (@dYdX) May 13, 2024
Impact Of The CEO Transition – Token Sees Sudden Drop
Ivo Crnkovic-Rubsamen, a long-time friend and collaborator of Juliano, is set to become the new CEO. Juliano expressed confidence in Crnkovic-Rubsamen’s ability to lead, noting that he has been “progressively” stepping back over the past two years, preparing for this transition.
Juliano will continue influencing “major decisions” and strategy at dYdX, working closely with the new CEO to oversee day-to-day operations.
He emphasized that dYdX’s mission is far from complete, pointing to the growing importance of DeFi and derivatives in the crypto landscape, noting:
dYdX is not finished. Not even close. The opportunity is bigger than ever now. It’s becoming incredibly obvious that DeFi will be the dominant way crypto is used, and derivatives will pily a large part in that.
Following the announcement of Juliano’s step-down, the price of the dYdX’s token experienced a decline, dropping by approximately 1.2% in the past 24 hours to a trading price of .01, with a 24-hour low of .94.
This downturn contrasts with the general recovery in the crypto market, highlighted by a 2.8% increase in Bitcoin over the same period.
Despite the dip in token price, dYdX’s total value locked (TVL) has remained stable, with a slight increase of 2.37% over the past month. It has maintained a level above 0 million since March.
Featured image from Unsplash, Chart from Tradingview
Dydx Foundation Receives $30M From Community Treasury to Propel Strategic Initiatives
This week, the Dydx Foundation revealed it has secured a million allocation from the Dydx Chain Community Treasury. This financial infusion is designated to extend the foundation’s operational capacity by an additional three years, facilitating the execution of the project’s strategic roadmap. Community Treasury Allocates Million to Dydx Foundation for Enhanced Ecosystem Innovation […]
Bitcoin News
dYdX to Unlock Over 33 Million Tokens: Will Price Crash?
dYdX, a decentralized exchange (DEX), will unlock over 33 million DYDX worth approximately million on February 1. This significant token unlock is the second event in the last week, following a previous unlocking on January 23.
dYdX To Unlock Million Of Token: What Happens Next?
According to Token Unlocks on January 30, the release will see the protocol distribute million of tokens to investors. At the same time, the team and future employees will each receive approximately million and .5 million, respectively.
The upcoming token unlock event is part of dYdX’s ongoing cliff unlock schedule, which will continue for the next five months. During this period, more DYDX will be unlocked.
For token holders, the frequency and size of these token unlocks raise concerns about the potential impact on DYDX prices. While some experts believe that the gradual unlock schedule will help mitigate any adverse effects, others fear that a deluge of DYDX into the secondary market could lower prices.
So far, the token remains in a general uptrend, looking at the price action from a top-down preview. Presently, DYDX is changing hands at around .8. Though it is down 35% from the December 2023 peaks, bulls are optimistic. The token has support at about .3, and the uptrend formation remains valid, provided bulls reject any attempt lower below this reaction level.
The protocol still has over 60% of tokens locked up. Of this, 233.86 million have not been allocated a release timing. Additionally, Token Unlocks notes that in H2 2023, the protocol will decrease the amount of tokens it unlocks. For this reason, prices might stabilize and even rally should the market recover from the year’s rough start.
V3 Deployed, Adds New Features To Trading Platform
On January 29, dYdX Chain successfully deployed v3 at block height 7147832. The update introduced improvements impacting efficiency, trading performance, and general user experience.
A big addition is the introduction of the Interchain Accounts Host Module, which enhances interoperability, reducing the time taken for users to switch between blockchains and manage assets.
Moreover, the DYDX v3 sees the introduction of liquidation daemons. This system will make it easier for traders to manage their margin positions and execute liquidations. The protocol reduced their requirements to simplify margin management and onboard more users.
As of January 30, the protocol has generated over 5 million in trading volumes. More than million in open interest and over 411,000 unique trades are posted on the platform.
dYdX Founder Skeptical Of Current Bull Run, Cites Low Participation
Taking to X on January 5, Antonio Juliano, the founder of dYdX, a decentralized exchange (DEX), expressed skepticism regarding the current crypto bull run. Juliano attributed the recent price surge to “light trading volumes.” This formation might, despite the overall confidence, not sustain the uptrend.
Founder: This Bull Run Is Different, Participation Is Low
Juliano asserted that a true bull cycle is not defined solely by price action but by participation and community enthusiasm. The founder continued that this “does not seem to be happening yet.”
The founder attributed the lack of widespread adoption to the absence of “groundbreaking” products that have captured the attention of a “broader” audience. However, releasing these “products” to the market could revive activity, driving crypto trading volume.
Juliano’s comments come ahead of the potential approval of the first spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Among several applicants are Fidelity, Grayscale, and BlackRock. Insiders claim the agency could approve the first product in the coming days.
A spot Bitcoin ETF may open the floodgates to institutional investors, allowing them to gain exposure to the Bitcoin and crypto market in a regulated manner. As it is currently structured, willing institutions regulated by the SEC can only get exposure through Grayscale’s products, including the GBTC.
Along the same line, some commentators have speculated that the SEC’s approval of a spot Bitcoin ETF could lead to the approval of a spot Ethereum ETF in 2024. An Ethereum Futures ETF was approved in 2023 and is currently available for trading. Even so, the product, like Bitcoin Futures ETFs that are widespread, tracks an Ethereum index price, not the Ethereum spot rate. Even so, whether the SEC will greenlight a spot Ethereum ETF remains to be seen.
Will A Bitcoin ETF Approval Revive DYDX Demand?
Trading volume is a critical metric for measuring participation and, thus, interest in a particular asset. The higher it is, the more liquid the asset is.
Depending on the prevailing sentiment, this might support prices or lead to a sell-off. As the crypto community eagerly waits for the SEC to decide on the flagship product, altcoins, including DYDX, have been firm.
Looking at the DYDX price chart in the daily chart, prices are moving horizontally but relatively high from the October 2023 lows.
The coin is up roughly 50% but remains under pressure in the short term. DYDX is down 40% from November 2023 peaks, trading below December 2023 lows in a bearish breakout formation.
dYdX To Unlock $478M Worth Of Tokens, Will Bears Have A Field Day?
On December 1, dYdX, the layer-2 decentralized exchange, will unlock 150 million DYDX worth roughly 8 million to early investors and core team members. This substantial unlock has raised concerns among investors, who fear the influx of fresh tokens could substantially increase supply.
If this is not matched by high demand, DYDX prices will likely pull back, reversing recent gains posted over the past few trading weeks.
DYDX Worth 0 Million To Hit The Market
According to Bubblemaps data, out of the 8 million worth of DYDX, over 50% is allocated to venture capitalists (VCs), including Paradigm and Polychain. Zooming back and looking at their data, VCs seeded 0 million to the layer-2 decentralized exchange.
These tokens were distributed to private investors through five wallets, including Coinbase Custody, Investor Distribution, and the Foundation Wallet.
Currently trading at over , DYDX is at February 2023 levels and technically bullish. However, the upcoming token unlock casts a shadow over the token’s positive momentum.
Notably, dYdX, postponed its token unlock by ten months. According to data, the humongous DYDX unlock was initially postponed from February to December 2023. Following this move, DYDX prices edged higher.
Even so, prices pulled back before consolidating in the better part of Q2, Q3, and early Q4 2023. There was a pronounced rally in late October 2023 as DYDX rose, riding the optimism across the crypto board.
At spot rates, DYDX is up 82% from October 2023 highs. However, looking at price action, bears are retesting the 20-day moving average of the BB. A break below this level might trigger a sell-off, pushing prices back to October 2023 highs.
Which Way Could Take The Price Action?
While it is likely that prices could contract ahead or after the unlocking event, the team has devised a way of mitigating the expected selling pressure. To illustrate, the initial unlock will release 30% of the total amount. Afterward, there will be monthly equal releases over the next three years.
For optimists, however, that a significant portion of these tokens will go to the team, and investors could end up supporting prices. Team members and venture capitalists trade less frequently than retail investors, meaning the expected liquidation pressure, if any, could be limited.
Moreover, some team members and even early investors might consider re-staking DYDX from their infrastructure, giving them more control.
Even with this release, crypto participants are upbeat, anticipating Bitcoin prices to track higher ahead of the expected spot Bitcoin ETF approval by the Securities and Exchange Commission (SEC). More tailwinds could result from the Bitcoin halving event in early Q2 2024.
Dydx Chain Unveils Network Fee Distribution and USDC Trading Fee Allocation
The Dydx chain, a proof-of-stake blockchain network, has successfully launched its mainnet and introduced dydx as its layer one (L1) token. On October 26, at 1 p.m. EDT, the network’s validators created the first block, signifying the start of a new era for the Dydx chain. The introduction of dydx as the L1 token brings with it enhanced utility, including the distribution of network fees to validators and stakers, and the allocation of trading fees to stakers in the USDC stablecoin.
Dydx Chain’s Mainnet Goes Live, Introducing Dydx as Integral L1 Token
Located in Zug, Switzerland, the Dydx Foundation oversees the Dydx chain, ensuring a secure and efficient operation of the network. Utilizing the Cosmos SDK and leveraging CometBFT for consensus, the Dydx network requires validators to stake its native tokens, contributing to the network’s security and governance. The development team’s announcement sent to Bitcoin.com News details that the L1 protocol token is pivotal in upholding the integrity and functionality of the blockchain.
The distribution of network fees on the Dydx chain is designed to incentivize participation and investment in the network. Validators and stakers are rewarded with a share of the protocol fees, acknowledging a crucial role in maintaining network security and stability. This mechanism aims to ensure a fair and transparent distribution of rewards, aligning the interests of all parties involved.
A unique aspect of the Dydx chain’s fee structure is the allocation of trading fees to stakers in the form of usd coin (USDC). The announcement on Friday details that this approach provides a stable and reliable source of rewards for stakers, mitigating the volatility often associated with crypto rewards. The Dydx team believes the use of USDC can add an extra layer of security and trust for participants in the network. On the other hand, the L1 dydx token provides utility functions, according to the team.
“The utility functionalities of a token reflect the usability of that token within a given protocol,” Dydx explained. “In the case of the Dydx chain, the utility of the network’s L1 token is apparent in three areas: Staking, Security and Governance,” the Dydx Foundation added.
What do you think about the Dydx Foundation’s latest announcement concerning the Dydx chain, its L1 token, and the distribution of stablecoin fees? Share your thoughts and opinions about this subject in the comments section below.
Ahead Of V4, dYdX Open-Source Code: Bull Run Incoming?
In what is seen to be a monumental move, dYdX, a layer-2 decentralized exchange (DEX), is open-sourcing its code as the platform prepares to implement v4. The exchange has a total value locked (TVL) of over 3 million, according to DeFiLlama.
dYdX Open-Sourcing Code Ahead Of V4
According to an X post on October 24, dYdX plans to eventually operate on its standalone blockchain on Cosmos, migrating from being a layer-2 exchange reliant on Ethereum for security. The standalone blockchain, dYdX Chain, will be built using the Cosmos software developer kit (SDK) and powered by the Tendermint proof-of-stake consensus algorithm.
In blockchain, projects often open source their code, allowing the public to scrutinize how smart contracts operate. By going public, the protocol is helping to build trust with users and community members, boosting security and increasing decentralization. This is especially important because the DEX handles sensitive financial data to facilitate trustless trading for all users.
Antonio Juliano, the founder of dYdX, has already said the exchange developer, dYdX Trading Inc., is updating its charter to become a Public Benefit Corporation. The exchange developers will work on an open project without benefiting. Though the platform will remain a for-profit company as a Public Benefit Corporation (PBC), the founder and the board will “not solely act to maximize shareholder value but act in the public benefit.”
Still, the layer-2 protocol has to receive approval from the community through a vote before the project transitions to v4 on Cosmos. Afterward, as stated by Juliano, dYdX will become fully open-source and decentralized, meaning the community will take over how the protocol evolves through a governance vote effected by the dYdX Foundation.
Will New Features Propel The Token To 2023 Highs?
With v4, dYdX will build an off-chain order book and release an equally scalable matching engine that can process more transactions. This way, the development team believes this will “dramatically” enhance the protocol, all without charging trading fees, since it will run on Cosmos, a scalable layer-1 and interoperable blockchain.
Part of these enhancements include making dYdX more efficient in trading. Subsequently, several features, such as batch execution and limit orders, will go live. At the same time, dYdX v4 will support trading new asset classes, such as equities, commodities, and real estate, making the protocol more versatile.
Ahead of this transition, the native token of the exchange is trading at H2 2023 highs, looking at price action. Notably, the token has broken above July to October 2023 resistance levels with increasing volumes. At the same time, looking at the development in the daily chart, bull bars are banding along the upper BB, pointing to strong upward momentum. The region around .25 and .5, marking Q1 2023 highs, could be immediate targets for optimistic bulls.
DYDX Is Up By 11% In A Week, But Investors Must Watch Out For This Event
DYDX, the native token of a decentralized exchange (DEX) with the same name, has been on a good run in the past few days. According to CoinGecko data, the cryptocurrency’s price jumped by 10.7% in the past week, reflecting a positive performance after an unfavorable start to August.
However, there has been rising concern that this spurt of bullish momentum may be short-lived. And the upcoming token unlock event is the primary source of this skepticism.
dYdX To Unlock .8 Million Worth Of Token In Single Event
Token unlock events are not a strange phenomenon in the cryptocurrency space, as many blockchain networks and decentralized finance (DeFi) protocols have a portion of their token supply locked – to be released periodically. DYDX is one of those tokens with a locked supply and its next token unlock event is happening on Tuesday, August 29.
In the latest iteration, the decentralized exchange will unlock .82 million worth of its native token to be distributed to its community treasury and rewards for liquidity providers and traders, according to data from Token Unlocks.
The token tracking dashboard shows that the DEX will release 6.52 million DYDX tokens, which accounts for 3.76% of the token’s current circulating supply.
Breaking this figure down, 2.49 million tokens – equivalent to .279 million at the current market price – will be allocated to the community treasury, which funds contributor grants, community initiatives, liquidity mining, and so on.
Meanwhile, the remaining 4.03 DYDX tokens will be distributed between trading rewards (2.88 million tokens worth roughly .11 million) and liquidity provider rewards (1.15 million tokens worth an estimated .44 million).
This is the second time the DEX will be carrying out an unlock event in August 2023. On August 1, 2023, dYdX executed an identical unlock event, distributing the same amount of tokens to the community treasury, liquidity providers, and traders.
Upon completion of this forthcoming event, over 25% of the total token supply will be unlocked, while less than 75% of the supply will still be locked.
Could This Event Hamper DYDX’s Rise?
Given that a considerable chunk of the 6.52 million DYDX tokens will be going to liquidity providers and traders, the chances are that a substantial portion of the tokens will be offloaded in the open market. As such, the DYDX price could suffer due to increased selling pressure.
The signs are not particularly positive from a historical perspective, either. Price action data reveals that the price of DYDX struggled after the identical unlock event on August 1.
The token lost nearly 10% of its value in a few days, reaching .91 by August 4. Although the token has witnessed an impressive turnaround, investors could see DYDX fall below the level again if history were to repeat itself.
As of this writing, the DYDX token changes hands for .12, reflecting a 1.7% price dip in the last 24 hours. CoinGecko data shows that there has been a 36.2% decline in the token’s daily trading volume, signaling a recent fall in market activity.
Ethereum dYdX Will Launch Standalone Blockchain On Cosmos, Token Jumps 10%
Ethereum-based decentralized trading platform dYdX will be deployed as an independent blockchain on the Cosmos ecosystem. The team behind the project made the announcement this morning leading to a positive reaction for its governance token, DYDX.
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At the time of writing, this token trades at .50 with an 8% profit in the last 24 hours for its USDT trading pair and a 10% profit on its ETH trading pair. In the meantime, larger cryptocurrencies are facing hurdles and could continue to consolidate around their current levels.
DYDX is in a downtrend on a 4-hour chart. Source: DYDXUSDT Tradingview
The standalone blockchain is part of this platform’s fourth iteration, dYdX v4. The team behind the project expects to “open source dYdX V4 by the end of 2022” but, as they clarified, this iteration will provide “critical” improvements so it will “require months of heads-down development”.
The team behind the Ethereum-based trading platform picked Cosmos and its Proof-of-Stake (PoS) Tendermint consensus because of its security, decentralization, customizability, cross-chain capacities, and leverage its scalability.
Thus, the platform will be able to process more transactions, and potentially increase its market share, amount of users, and trading volume while moving to its next development stage: full decentralization. The team behind the project said:
The main requirement for the V4 protocol is full decentralization. The decentralization of a system is equal to the decentralization of its least decentralized component. This means that every part of V4 needs to be decentralized while also remaining performant.
The ultimate objective, according to the announcement, is to make dYdX “one of the largest exchanges in all of the crypto”. This requires an infrastructure capable of processing a lot of transactions and supporting the exchange’s engine without compromising its level of decentralization.
The team behind the project added:
Developing a decentralized off-chain orderbook and moving from Ethereum to a dYdX-specific chain as a major DeFi protocol is very much untested, but we believe this gives dYdX the best shot at offering a competitive product experience with centralized exchanges.
Is Leaving Ethereum The Best Choice For dApps?
The fourth iteration of dYdX will have new features, such as an off-chain order book, and no trading gas fees. The fee structure will be similar to that of centralized exchanges. The governance token DYDX will continue to be the main component of the exchange’s governance model.
The announcement has been celebrated across a portion of the crypto community, the market seems to have reacted positively. However, others have expressed concerns as they believe a standalone version of dYdX will lack security and composability, or design flexibility.
Related Reading | Ethereum (ETH) Market Cap Falls More Than 4 Billion In Six Weeks
Analyst Ryan Watkins said the following on the dYdX announcement:
While I understand the desire for sovereignty and the need to scale more quickly, I’m not convinced why an app-chain is the best path forward. Losing security and composability (as opposed to deploying on Starknet) with the Ethereum ecosystem seems risky.