In the footsteps of Jupiter and Hyperliquid, the decentralized exchange Dydx, specializing in trading of Perps, announced a Buyback program of Ores already effective. The opportunity to give a second breath to the token dydx?
The Dex Dydx embarks on the Buyback of his Tokens
Tokens Burn is not something new: This mechanism was notably popularized by Binancethe largest crypto exchange in the world, with its famous colossal quarterly BNB burn. However, in order to maintain the price of an upward token, burn via the buyout of Tokens (Buyback) is democratized within decentralized finance (DEFI).
Thus, we were able to see Dex like Jupiter (the most important of the Solana ecosystem in terms of volume) or Hyperliquid (one of the few projects that have managed to keep post-ardrop) get started in the dance to attract investors, or simply to incentivate those already present.
The Perps Dex market is today largely dominated by hyperliquid
📈 What are the best platforms for trade of the Crypto perpetuals? Our selection
To put it simply, a buyback, or tokens' buyout, is an operation where a crypto project uses part of its income to buy a certain quantity of its own tokens issued on the market. The objective is mainly to reduce the supply of tokens in circulation and support the price of the latter. The tokens bought can be burned (deleted) or simply locked, which makes them inaccessible.
Today, it is the decentralized exchange Dydx who embarks on the acquisition of Tokens in order to “strengthen long -term confidence in the token” and to “consolidate his role in the ecosystem”. A welcome initiative, the price of the token dydx being down 84 % since its ATH.
Long or shorts over 100 cryptos with hyperliquid
What does the DEX plan for this new mechanism?
According to his press release, Dydx now allocates 25 % of net income from its protocol in order to make monthly buybacks on its eponymous token. Until now, 100 % of DEX revenues have been redistributed to its users.
Now, Dydx's net income is shared as follows:
- 10 %: Subdao cash;
- 25 %: Megavault;
- 5 %: buyout program;
- 40 %: Stoking awards.
According to discussions within the DAO of the project, The proportion of funds allocated to the acquisition of tokens dydx could ultimately reach 100 %. Such an initiative would still bring it closer to hyperliquid, one of its main competitors. A daring strategy, but which would force the Dex to undoubtedly revise its structure.
🔬 Get started on Dydx with our dedicated guide
In parallel, DYDX also announced a program aimed at supporting its growth, in particular with the upcoming launch of trading spot, trading on multi-end margin, or even the management of networks compatible with Ethereum Virtual Machine (EVM).
In 2024, DYDX recorded $ 270 billion in volume and $ 46 million in net revenues through 150 markets.
💵 Stoking is rewarded on Dydx: how to take advantage of it?
Generally, since they reduce the inflationary phenomenon induced by the progressive liberation of Tokens (Token Unlocks), the Buybacks are perceived as a new positive: the holders of a token concerned generally hope that this modification will support the course of an increasing crypto.
However, this phenomenon being “artificial” and not organic, it sometimes also underlines the faults of the Token Unlocks, as well as the difficulty for the majority of the projects concerned to maintain a sufficient attraction on their protocol and / or for their token.
Anyway, the Token Dydx has yet benefited from the news, Its price is up 8 % over the last 24 hours.
Trade crypto volatility decentralized with Dydx
Sources: press release, dune
The crypto newsletter n ° 1 🍞
Receive a summary of crypto news every day by email 👌
Certain links present in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner gives us a commission.
Investments in cryptocurrencies are risky. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital
As an editor -in -chief of cryptoast, I agree to make the world of cryptocurrencies and the web3 accessible to all. Expert in the identification of the most relevant news, I attach great importance to the quality of the articles produced by cryptoast. I make sure that our readers benefit from reliable information, verified and presented clearly and pleasant to read. My goal is to share quality knowledge to better inform and educate our audience about this constantly evolving universe.
MAXIMILIEN PRUDE
1376 articles
