TITLE: dYdX initiates a community vote on market maker rebate plan

02/21/2023 02:16 • AI & Tech Insights • 86 views

It is reported that dYdX initiated a community vote on whether to introduce a market maker rebate plan, aiming at stimulating liquidity and reducing dependence on rewards. The proposed market maker rebate plan is composed of five levels, which are divided based on the percentage of its trading volume in the 30-day trading volume on dYdX, and the fee rebate is between 0.0025% and 0.01%. The voting will end at 09:34 Beijing time on February 22.

DYdX initiates a community vote on whether to introduce the market maker rebate plan

Interpretation of the news:

KEYWORDS: dYdX, market maker rebate plan, liquidity, rewards, voting

Decentralized exchange dYdX is initiating a community vote on whether to introduce a market maker rebate plan in an attempt to boost liquidity and decrease its reliance on rewards. The exchange proposes to divide the market maker rebate plan into five levels based on the volume of trading within the 30-day period on the dYdX platform. Depending on the level, the rebate plan ranges between 0.0025% and 0.01% in terms of fees.

The proposed market maker rebate plan will introduce rebates for those who meet certain trading requirements. The exchange plans to implement this in order to attract more market makers to the platform, which will then lead to increased trading volume and liquidity. The proposed rebate plan is a step forward for the exchange in terms of their direction, and it has been put to a community vote. Voting for the plan will end on February 22 at 09:34 Beijing time.

The platform’s reliance on rewards has previously drawn criticisms from the community, as it considers rewarding a select few contributors as highly exclusionary. Although dYdX can be viewed as a highly-specialized platform, the reward system that it implements discourages people from participating. The concern regarding the effectiveness of rewards in attracting further liquidity has led to the consideration of alternative solutions such as the aforementioned market maker rebate plan.

In the dYdX community, this proposal has been met with mixed reception. Some believe that the market maker rebate plan should be implemented as soon as possible, as it will greatly enhance liquidity, and in turn, participation in the platform. Others believe that the implementation of the plan will only further deepen the divide, as only certain few traders will ultimately benefit from the rebates. It is essential to note that the market maker rebate plan is not exclusive, but will only apply to those who are actually trading on the platform.

In conclusion, the introduction of a market maker rebate plan by dYdX is an exciting development. This move is strategic, and it aims to solve some of the liquidity issues on the platform. The ability to vote on the matter only proves that the platform is actively seeking ways to improve itself for the benefit of its community. However, like any other proposal, there are pros and cons to the issue at hand. The only way to tell whether this rebate plan will be implemented or not will depend on the outcome of the community vote.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/ai/1980.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

TITLE: dYdX initiates a community vote on market maker rebate plan

DYdX initiates a community vote on whether to introduce the market maker rebate plan

Related recommendations