dYdX Community Votes to Stake $60 Million for Network Security Boost – Here’s What You Need to Know
The dYdX community has voted to stake 20 million dYdX tokens , worth around $60 million at the time of publication, using Stride’s staking service for Cosmos blockchains.
The decentralized exchange (DEX) platform dYdX allows users to trade perpetual futures contracts (aka perpetual contracts). In its most recent iteration (dYdX v4), it moved to launch its own fully independent blockchain dYdX chain in October 2023 built on the Cosmos blockchain.
This blockchain is completely independent of its parent company, as dYdX’s DAO oversees its governance. dYdX’s native token also doubles as its governance token. Through the DAO, dYdX holders can participate in major protocol decisions. They can also propose and vote on protocol upgrades or changes such as algorithm changes, funds managment, and chain upkeep.
This aids in dYdX ’s mission to provide users with a community-driven trading experience.
It is the dYdx community that is responsible for the recent move to stake 20 million dYdX tokens, with Stride’s staking service for Cosmos blockchains. In a vote with 81% participation, the measure passed with 91% support.
Stride is a blockchain that provides liquidity for staked tokens. Users can liquid-stake their tokens from any Cosmos chain using Stride, earning a yield. This provides improved liquidity, allowing stakers to trade coins regardless of whether there are any buyers or sellers.
The proposal aims to boost the economic security of the network and encourage stake diversity in its community. The tokens staked in the liquidity pool will earn USDC rewards, which will be automatically compounded into more dYdX tokens as “the yield from fees generated will be continuously used via Stride to buy dYdX”, said dYdX founder,
