{"id":18757,"date":"2025-03-24T12:16:37","date_gmt":"2025-03-24T12:16:37","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=18757"},"modified":"2025-03-24T12:16:37","modified_gmt":"2025-03-24T12:16:37","slug":"dydx-shoots-up-10-as-buybacks-get-a-quarter-of-protocol-revenue","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=18757","title":{"rendered":"DYDX shoots up 10% as buybacks get a quarter of protocol revenue"},"content":{"rendered":"
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\"DYDX<\/p>\n

Decentralized finance (DeFi) trading platform dYdX announced its first-ever token buyback program on March 24, aiming to reinvest in its ecosystem to enhance security and governance.<\/p>\n

According to the announcement<\/a>, 25% of the protocol\u2019s net fees will be dedicated to monthly buybacks of its native dYdY (DYDX<\/a>) token on the open market.<\/p>\n

Following the announcement, DYDX surged over 10% and was trading at approximately $0.731 at the time of writing, according to CoinGecko. The token has gained more than 21% over the past two weeks.<\/p>\n

\"DYDX
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DYDX spikes on buyback news. Source: <\/em>CoinGecko<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Related: <\/strong><\/em>dYdX explores sale of derivatives trading arm<\/strong><\/em><\/a><\/p>\n

New dYdX distribution model\u00a0<\/h2>\n

Previously, dYdX distributed 100% of its platform revenue to ecosystem participants. Under the new allocation model, 25% will be used for token buybacks, another 25% will fund its USDC liquidity provision program, MegaVault, 10% will be directed to its treasury, and the remaining 40% will continue as staking rewards.<\/p>\n

dYdX noted that the current allocation of 25% to token buybacks could increase, with ongoing community discussions potentially pushing this percentage to as high as 100% over time.<\/p>\n

Related: <\/strong><\/em>DeFi market stages a comeback as derivatives surge<\/strong><\/em><\/a><\/p>\n

The platform currently holds a total value locked (TVL) of $279 million, according<\/a> to DefiLlama. It generated $1.29 million in revenue from fees in February and $1.09 million so far in March.<\/p>\n

\"DYDX
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Token buybacks get 25% of revenue, which has been dropping. Source: DefiLlama<\/em><\/p>\n<\/figcaption><\/figure>\n

\u201cDeFi festival\u201d waits for summer to end<\/h2>\n

The DeFi industry commonly references the DeFi summer of 2020 as a benchmark, characterized by rapid user growth driven by yield farming and decentralized applications.<\/p>\n

In a recent interview with Cointelegraph<\/a>, dYdX Foundation CEO Charles d\u2019Haussy predicted that the next significant DeFi boom would occur shortly after summer, potentially beginning as early as September and lasting \u201cmonths and months.\u201d<\/p>\n