The Effect of Farming Incentives
dYdX’s total volume increased from about $10 mn a day to over $250 mn a day in the span of a month. Open interest grew alongside volume, rising at a similar pace. This growth can be attributed to the recent DYDX token launch and traders attempting to farm DYDX rewards. 7.5% of the supply was airdropped to past users. But new token incentives for traders – comprising 25% of supply — are tempered and will be distributed over 5 years. If the DYDX token performs well on launch, it seems reasonable to expect liquidity to remain on the exchange to farm the token.