Trading on dYdX is now more rewarding than ever. With Trading Rewards, users can turn their fees into token rewards, setting dYdX apart from many other decentralized and centralized exchanges. Here’s everything you need to know about how Trading Rewards work on dYdX and how you can make the most of them.

Understanding dYdX Trading Rewards

There are two types of rewards for traders on dYdX:

1. Monthly Reward Points: Adopted by the community, these rewards are designed to recognize active traders and market makers, offering a share of $1.5M in DYDX (as of December 2024) distributed monthly.
2. Instant Rewards: DYDX tokens are automatically credited to users’ accounts with every trade they make on the protocol.

These mechanisms work together to reward users for their activity, both instantly and on a monthly basis. Let’s break them down further.

Monthly Reward Points Program

The monthly Reward Points program is based on a simple and transparent scoring system:

• Points Calculation: For every trade, you earn points based on the fees you pay.
• Boost for Smaller Markets: Trades in smaller markets (outside the top 5 by volume) receive a 2x multiplier on points earned.

Here’s an example:

• If you trade $10,000 on dYdX with a standard maker fee of 0.01%, you pay $1 in fees and earn 1 Reward Point.
• Trading in a smaller market with the same volume and fees earns 2 Reward Points due to the multiplier.
• For taker fees of 0.05%, the same trade results in 5 Reward Points (or 10 with the multiplier).

At the end of each 30-day season, your Reward Points represent your share of the monthly reward allocation. The value of each point is determined based on the total points earned by all traders during the season.

You can view the leaderboard here and the proposed distribution for Season 7 here to get an idea of your potential share in the monthly allocation.

Instant Rewards

Instant Rewards are credited to your account automatically by the dYdX protocol with every trade you make and are calculated similarly to the Reward Points program. Unlike the monthly program however, these rewards are distributed at a protocol level, block by block. The share of rewards you receive depends on the total fees collected by the protocol in that block.

Tracking Your Rewards

dYdX rewards are designed to be simple and transparent, ensuring you can easily track your earnings:

• On-Platform Display: Whenever you make a trade, your earned rewards are displayed in the top-right corner of the screen, if you're using the UI.
• Reward History: The “DYDX” section of the UI shows your trading reward history, current balance, and estimated Reward Points.
• Leaderboard: You can find a ranked table of traders based on their Reward Points here. This gives you an idea of your expected share of the monthly allocation.
• Community Updates: Chaos Labs, a dYdX grantee, publishes a comprehensive list of addresses and their earned DYDX incentives in the forum every season. The latest proposal recommends that over 2,500 users share in the Season 7 allocation. Nearly 50 traders would receive $1,000 in Trading Rewards, with 21 receiving $10,000 or more.

Getting Started with Trading Rewards

It’s easy to start earning rewards on dYdX:

1. Connect Your Wallet: You can get started by connecting your wallet and depositing USDC.
2. Start Trading: You can earn instant trading rewards and Reward Points with every trade.
3. Monitor Your Progress: Use the dashboard to track your rewards and compare your performance against other traders via the leaderboard.

Ready to Start Earning?

Head over to dydx.trade to start trading and earning rewards today. For more details, check out the resources linked below and join the dYdX community in making trading more rewarding than ever.