description
Overview of the dYdX Chain and the DYDX token.

🤝 Introduction

dYdX Chain

The dYdX Chain is a proof-of-stake blockchain network built using the Cosmos SDK and leveraging CometBFT for consensus. The software was fully audited by Informal Systems and open-sourced by dYdX Trading Inc. ("dYdX Trading").

The dYdX Chain open-source software was deployed and the first block of the dYdX Chain was created by the dYdX Chain validators on October 26, 2023, at 17:00 UTC.

DYDX Token

DYDX is the dYdX Chain's Layer 1 token, as adopted by the dYdX community, through dYdX governance (Snapshot and on-chain).

DYDX, the dYdX Chain's L1 token, serves three key purposes: Staking, Security, and Governance.

1. Staking: DYDX holders have the option to serve as validators (and self-delegate) or to delegate their stake to existing validators. Such delegation increases the likelihood of the chosen validators entering or staying in the active validator set, thereby becoming a participant in the network’s consensus process.
2. Security: Staking DYDX directly contributes to dYdX Chain security. As more DYDX holders choose to stake their tokens across a diverse range of validators in the network and the total amount of stake on the network increases, it becomes increasingly difficult for a coordinated attack to influence a consensus decision.
3. Governance: DYDX empowers DYDX holders to propose and vote on proposals, directly influencing the evolution of the dYdX Chain through a democratic process. The subject matter of proposals can vary from changing a governable parameter on the dYdX Chain, spending dYdX community funds, and updating the software that dYdX Chain nodes are running, among other things.

Token Migration

Learn more about the DYDX token migration from Ethereum to the dYdX Chain:

{% content-ref url="migration-of-dydx-from-ethereum-to-dydx-chain/migration-and-bridge-overview/" %} migration-and-bridge-overview {% endcontent-ref %}

{% content-ref url="migration-of-dydx-from-ethereum-to-dydx-chain/wethdydx-and-wethdydx-smart-contract.md" %} wethdydx-and-wethdydx-smart-contract.md {% endcontent-ref %}

{% content-ref url="migration-of-dydx-from-ethereum-to-dydx-chain/token-comparison.md" %} token-comparison.md {% endcontent-ref %}

{% content-ref url="dydx-dydx-chain/x-bridge-module.md" %} x-bridge-module.md {% endcontent-ref %}

dYdX Chain Modules and Parameters

Learn more about the dYdX Chain Modules and Governance Adjustable Parameters:

{% content-ref url="dydx-chain-modules-and-parameters/staking/" %} staking {% endcontent-ref %}

{% content-ref url="dydx-chain-modules-and-parameters/distribution/" %} distribution {% endcontent-ref %}

{% content-ref url="dydx-chain-modules-and-parameters/governance/" %} governance {% endcontent-ref %}

{% content-ref url="dydx-chain-modules-and-parameters/governance-adjustable-parameters/" %} governance-adjustable-parameters {% endcontent-ref %}

{% content-ref url="dydx-chain-modules-and-parameters/trading-rewards-and-rewards-module.md" %} trading-rewards-and-rewards-module.md {% endcontent-ref %}

{% content-ref url="dydx-chain-modules-and-parameters/community-treasury/" %} community-treasury {% endcontent-ref %}

Guides

		How to Stake	How to Stake.png	https://www.dydx.foundation/how-to-stake/overview
		How to Claim Staking Rewards	How to Claim.png	https://www.dydx.foundation/how-to-claim
		How to Vote	How to Vote.png	https://www.dydx.foundation/how-to-vote/overview

*** Last Updated as of February, 2024.