Along with usual programming we’re publishing a content series covering the dYdX ecosystem - whether you’re a crypto newbie or a double-OG, tap into the main hub for more 🔥 drops!
Today’s Menu:
Crypto Market Sentiment 🤒
Success for ENS is Great for dYdX Users🤘
dYdX Incentives 🤑
[1] Crypto Market Sentiment 🤒
It’s no secret that 2022 so far has been of stark contrast to prior years in the decade-plus long bull market. In bull runs where interest rates are anchored to the floor, capital far and wide finds itself hunting returns in more volatile fields than usual where assets are much higher beta either due to liquidity profile or inherent fundamental composition.
As inflation ravages wild, growth gets trimmed and rates climb higher, much of this yield/return hunting is being unwound and in some cases involuntarily.. [see Netflix earnings].
As this reality ensues, a major debate on the table is about the depth and longevity of the bear market and Crypto is by no means immune to this as current market prices show. Nevertheless, traders of all the different market participants out there, are superbly placed to make plays within this environment. The best traders navigate sentiment with a profitability mindset. Volatility creates opportunity and decentralized exchanges like dYdX are robust enough to keep the same elite level of service going despite the storm so that users can trade effectively regardless of whether markets go up or down and whether the economy slips into a recession or not. Remember, not all market participants are able to go long and short.
Cumulative traded volume across dYdX continues its uptick during this time and illustrates that activity on an absolute basis is persisting despite the quarterly slowdown in transaction volume which the whole ecosystem has experienced.
As such, users of dYdX can be confident in the depth of liquidity and market access. The overall new users depositing into the protocol continues to edge higher too, despite the poor market sentiment overall which is the sign of a great product.
[2] Success for ENS is Great for dYdX 🤘
If you’re already familiar with the Ethereum ecosystem, the notion of adding a “.eth” suffix to your internet profile handle will not be foreign at all. But for newcomers, it may seem a little weird. In short, .eth represents an Ethereum Name Service (ENS) handle which is also known as your web3 username. ENS is a protocol which allows you to register a human-readable name and other profile data. This means you can use it in place of the highly non-intuitive crypto native wallet addresses which long exceed 20 characters i.e. 0x73BCEb1Cd57C711feaC4224D062b0F6ff338501e. Something like name.eth is much more meaningful, intuitive and opens up a whole new realm of possibilities when it comes to profiling in web3.
ENS has garnered plenty of users as the most widely integrated blockchain naming service with around 1 million names created. These names can be registered through the app and are tradeable on NFT platforms such as Opensea so if you haven’t secured yours yet, check it out as soon as you can, there may be a time where profiles enable this 👀
Recently, $1m secondary ENS name sales went through in a 24hr period on Opensea which is an interesting indication of the new age internet profile infrastructure becoming deeply entrenched.
dYdX Profiles is principally aligned with this same seismic shift so there is no better time to become fully immersed as a user than now! The implication the success of ENS has on the dYdX user experience may not be obvious in plain sight but with some creative thinking it couldn’t be clearer. People secure ENS names as a means to personalise their footprint in the metaverse. In conjunction with the use of NFTs, you can build up a pretty powerful reflection of your cyber-self. dYdX Profiles – which uses Hedgies and other features – will continue to level up the overall trading experience on the platform by allowing traders to put a more personalised stamp on their activity whether anon’ or doxxed. The ENS path has shown the value derived from alternative profile/naming conventions in the crypto ecosystem so we’re excited to see how Profiles evolve.
[3] dYdX Incentives 🤑
Trading Leagues on dYdX gamifies the trading experience and allows users to compare & improve, compete with peers and potentially earn awesome rewards. It’s real, it’s happening.
One thing to remember is that users are a fundamental part of the dYdX community and participation in governance is highly encouraged. Trading leagues were one of a kind from inception and the team will continue to look extract even more value for the trading experience. As alluded to in the last publication, users can have a say on the direction of a protocol through governance and community participation. I kid you not, check out the engagement on discord.
Trading is not the only way dYdXers are being rewarded. The dYdX Foundation has 205 Hedgies of which 17 have found new homes as of Epoch 8. The main pillars for distribution are:
- Community Building
- Governance
- Grants
- International Growth
So if you haven’t immersed into the ecosystem already, what are you waiting for? Check out forums for more info.
If you missed the previous dYdX publication hit the link below and have a read ✌️