Presented by dYdX

DeFi platform dYdX launched a $20 million trading competition running through year-end to boost trading activity and reengage past users.

Incentive programs are key to building a dynamic and sustainable decentralized finance (DeFi) ecosystem. By rewarding participation, platforms can boost trading activity, attract liquidity and create a loyal community. As the number of platforms operating in the space is ever-increasing, well-designed incentives can differentiate protocols and encourage deeper user commitment.

Decentralized exchange (DEX) dYdX recently announced the dYdX Surge Program, which was developed in collaboration with Chaos Labs and approved by the community. The initiative will provide attractive incentives to active ecosystem participants for a nine-month period.

dYdX Surge is fully permissionless, there’s no need to sign up or manually claim rewards. All eligible trading activity on dYdX automatically generates reward points and a leaderboard ranking. Rewards are distributed at the end of each season.

A gamified incentive program

Kicked off on April 1, the program will operate in monthly “seasons” and allocate up to $20 million in DYDX tokens to reward users in line with their activity on the DEX. Its allocations are divided into three categories.

  • General (50%): Distributed to takers based on trading fees to promote capital efficiency.
  • Retail (25%): Rewards takers who trade via dYdX’s web and mobile platforms.
  • Activation (25%): Stimulates engagement with new features, attracts liquidity to new markets and reactivates historical users.

Program allocation. Source: dYdX

Program allocation. Source: dYdX

With this tiered structure, dYdX aims to drive trading activity among both new and returning traders.

The dYdX Surge Program also brings a gamified approach to trading by introducing a points system. Users can accumulate points with activities such as paying trading fees, staking DYDX tokens to a dYdX validator, executing transactions via dYdX’s official web and mobile interfaces and reactivating wallets from dYdX v3 or early v4 as well as trading in boosted markets, which will be announced periodically.

Accumulated points are converted to token rewards throughout each season. Meanwhile, monthly leaderboards, maintained transparently by Chaos Labs, allow traders to track their performance and compare their standing with others, adding an element of competition to the initiative.

In 2024, dYdX recorded over $270 billion in trading volume across 150+ markets. With more than 58,000 DYDX tokenholders, a fully decentralized infrastructure and a rapidly evolving product across web and mobile, dYdX is committed to delivering the best trading experience in DeFi, without compromising on ownership or transparency.

Community runs the initiative

Reengaging past users is a key aspect of the program. dYdX v3 and early dYdX v4 users will be eligible for additional multipliers during the Surge seasons, with an aim to incentivize them to return to the platform and maintain long-term user alignment.

A decentralized autonomous organization (DAO) runs the dYdX platform, meaning the Surge Rewards Program is a community-driven initiative. Reward allocations, eligibility criteria and program enhancements will be subject to monthly governance proposals, ensuring the program remains responsive to market conditions and trader needs.

Building a loyal community

The Surge Rewards Program reflects dYdX’s broader strategy of aligning protocol success with user benefits. By incentivizing ecosystem participation, including through staking, product engagement and building loyalty, the platform is fostering a more interconnected and committed community. Early reactions suggest the approach is resonating: following the announcement, active addresses on dYdX saw a 25% daily increase and trading volume nearly doubled, signaling strong initial interest.

Combining incentives with thoughtful design, initiatives like the Surge Rewards Program can be an important contribution to the maturing DeFi landscape. By rewarding diverse forms of participation, dYdX is doing more than just driving short-term activity — it is laying the groundwork for a resilient ecosystem that encourages sustained engagement. As the program unfolds, its long-term impact on user retention and platform growth will offer valuable insights for the broader DeFi sector.

Learn more about dYdX

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