💹dYdX SRB

dYdX Staking Rewards Benchmark (dYdXSRB™) Methodology

dYdXSRB is a benchmark that represents the annualized reward rate of the dYdX token.

dYdXSRB is calculated and published by Staking Rewards via the dYdX Profile and Staking Data API.

dYdXSRB=(ap+dfty)(1c)/stdYdXSRB = (ap + df * t_y) * (1 - c) / st
Formula keyMetric nameDescription

ap

Annual Provisions

The total ammount of tokens emited per year. *Dec. 23, Block Rewards are currently not enabled

df

Daily Fees

The total number of DYDX tokens paid as transaction fees and Total Trading fees in USDC paid on the platform in the last 24 hours.

c

Community Tax

Community Tax is the percentage of inflation rewards and fees that are sent to the community pool at each block. The constant parameter is set by dYdX governance. *Dec. 23, Community Tax is set to 0

st

Staked Tokens

The total number of DYDX tokens bonded with active, non-jailed validators.

tyt_y

Year Constant

365d

dYdX has established a system where traders can earn rewards based on their trading activity. This is designed to incentivize trading volume and liquidity on the platform. The reward structure and fee schedule can be adjusted by the governance community, indicating a flexible approach to managing market dynamics and user behavior.

  • dYdXSRB takes into account all accumulated rewards, whether they have been claimed or remain unclaimed.

  • dYdXSRB operates on a non-compounded basis, meaning it excludes returns generated from the reinvestment of rewards.

Slashing

  1. dYdXSRB does not factor in the possibility of slashing occurrences.

  2. It's important to note that if validator entities face slashing, rewards will increase, as the slashed dYdX tokens are reallocated among validators.


dYdX Validator Staking Rewards Rate: dYdXSRB(v)

Staking Rewards calculates the dYdXSRB for each validator based on their individual performance and commission rate.

dYdXSRB(v)=dYdXSRB(1p)(1cr)dYdXSRB(v) = dYdXSRB * (1*p)*(1-cr)
Formula keyMetric nameDescription

p

Performance

The percentage of successfully validated blocks.

cr

Commission Rate

The percentage commission rate the validator has set as a delegation fee for all delegators.


Observation Period:

  1. The dYdXSRB is determined based on the latest generated block at the point of evaluation.

  2. This data is then annualized for a comprehensive year-long projection.

Calculation

The calculation happens every 2 hours and is immediately published via Staking Data API.

Limitations

  1. dYdXSRB employs a 365-day convention for annualizing current block provisions and daily fees. This convention remains consistent and does not accommodate adjustments for leap years.


dYdX Real Reward Rate (dYdXSRB^R)

The real reward rate calculates the dYdXSRB adjusted for inflation in the network.

dYdXSRBR=1+dYdXSRB/(1+i)1dYdXSRB^R = 1+dYdXSRB /(1+i)-1
Formula keyMetric nameDescription

i

Inflation Rate

Inflation calculated based on the historical dYdX circulating supply.

Inflation Rate Behaviour

  1. Token Allocation and Unlocks: dYdX has a total supply of 1 billion tokens, with various allocations for investors, community treasury, rewards treasury, and others. These tokens are being unlocked over a 5-year period, with significant unlocks already occurred and more scheduled for the future. This unlock schedule could potentially influence the market dynamics due to the increase in circulating supply​​​​.

  2. Inflation Rate Post-5 Years: After the initial five-year period, dYdX plans to implement a perpetual inflation rate of 2% every year. This is intended to ensure a steady supply of DYDX tokens for community rewards and contributions​​.


Other dYdX metrics calculated by Staking Rewards:

MetricDescription

Delegated Tokens

The number of dYdX tokens delegated to validators

Self Staked Tokens

The number of dYdX tokens staked by validators directly.

Staking Wallets

This metric refers to the total quantity of distinct delegations made. It doesn't distinguish based on unique delegator addresses and excludes considerations of any minimum delegation thresholds.


Data Sources:


References:


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Last updated on 05/23/2024

Last updated