dYdX, a decentralized derivatives trading platform, has launched the public testnet for its V4 iteration, bringing the project closer to migrating to its own Cosmos-based blockchain.
You can find a comprehensive article on the GNCrypto website about the functionality of the dYdX platform. Today, we will delve into the activities on the testnet. Since the platform is on the verge of transitioning from Ethereum to its own blockchain, the actions taken on the testnet could potentially lead to rewards in the form of NFTs or project tokens.
Getting Started
To begin, you will need a Metamask wallet. Here are the first few steps:
● Add the Goerli testnet to your Metamask using Chainlist.org.
● Connect to the dYdX platform and sign a message in the wallet;
● Get $1000 in test funds.
Acquiring test tokens for executing transactions on the dYdX testnet (https://v4.testnet.dydx.exchange/)
The testnet effectively runs on a prototype of the upcoming blockchain, so you'll need to save the newly created seed phrase upon connecting to the website.
As many users are presently active in the test network, the test $1000 faucet occasionally experiences hiccups. You might even see a "Failed to Fetch" message when trying to connect to the platform. Don't worry, this is normal. If you come across such errors, it's best to wait a bit and attempt to access the platform later.
A "Failed to Fetch" error (https://v4.testnet.dydx.exchange/)
dYdX Testnet Activities
In the fourth phase of the dYdX testnet, you can interact with the app and execute contract buy and sell transactions. Here are some steps you might take:
● Buy and sell BTC and ETH futures using leverage;
● Carry out both long and short deals;
● Utilize all available order types (Market, Limit, Stop Order)
It's also advisable to repeat these actions every couple of days, keeping your account active. Often, this continuous activity serves as a multiplier for rewards.
dYdX Stats
According to the official tokenomics, 25% of DYDX tokens are set aside as rewards for traders and community members who are active on the platform. It's unclear whether this applies exclusively to the Mainnet, but there's a chance that dYdX network testers might receive a reward following the launch of the blockchain.
DYDX token tokenomics (https://www.coingecko.com/en/coins/dydx/tokenomics)
Also, the project's Total Value Locked (TVL) hints at an upcoming drop. As per the DeFiLlama analytics platform, the platform has $350 million locked at press time, surpassing the project's market cap of $310 million. This indicates a large reserve of accumulated funds that could be put towards various activities and rewards.
