On-Chain Analysis of DYdX by Bubblemaps

The CEO of Bubblemaps, Nicolas Vaiman, breaks down crucial token dynamics of Dydx that holders of the token should know about.

Introduction

Lending and borrowing projects such as MakerDAO, Aave, and Compound are prominent players in the DeFi space, with a combined market cap of $4 billion. The dYdX platform distinguishes itself by offering not only lending and borrowing options, but also advanced trading and staking features. They also stand out with its decentralized governance (DAO). Let's delve into the tokenomics of this fascinating project using Bubblemaps!

dYdX: A Turbulent Year-End Ahead?

Through five successive fundraising rounds, including high-profile investors like Paradigm, a16z, DeFiance Capital, and Polychain, dYdX has succeeded in raising $85 million. Launched in 2021, its native token $DYDX quickly climbed the ranks to enter the top 100 cryptocurrencies. 28% of the token's total supply was allocated to venture capital (VC) investors.

On-chain analysis reveals that five wallets were used to distribute the $DYDX tokens to these investors, with each wallet probably corresponding to a specific funding round. These distribution wallets then sent the remaining tokens to a wallet labeled "Coinbase Custody wallet".

Several of these investor wallets have been identified, including those of Dragonfly, DeFiance Capital, Polychain, and 3AC. The rest, we assume, belong to other VCs, as the cluster accounts for exactly 28% of the total $DYDX supply.

What's particularly noteworthy in this cluster is a subgroup of 10 wallets. Each holds precisely 3.9 million $DYDX tokens, and all have delegated their votes to a single wallet.

Finally, the token release has been postponed from February to December 2023, likely to mitigate selling pressure during a bear market. Therefore, significant movements are to be expected on these wallets starting December 1st.

Bubblemaps enables a thorough on-chain analysis, providing important insights into the dynamics of the dYdX project and its implications for token holders and investors.