The dYdX Chain was launched in late November 2023, it is built on the CometBFT and utilizes the Cosmos SDK. As a reminder, dYdX's mission is to democratize access to financial opportunity.This migration, known as dYdX v4, enhances decentralization and opens up new possibilities.
By opting for a Proof-of-Stake consensus, the dYdX Chain offers fresh opportunities for stakers to get rewarded for contributing to the chain security and decentralization.
The mechanism of rewards and fees on the dYdX Chain
On the dYdX Chain, staking rewards are mostly distributed in USDC and are manually claimed per-block basis (approximately every 1.08 seconds). Staking rewards come from trading and gas fees from transactions made on the dYdX Chain.
When using Kiln Validators through Fireblocks, you can manually claim your rewards with a single line of code that will send your rewards to the provided wallet.
While currently the average Validator Commission rate on the dYdX Chain is 6.08%, Kiln Validator's commission rate is 5%.
To calculate your dYdX staking rewards, you should account for:
1. Trading fees and gas fees from transactions made on the dYdX Chain.
2. Total dYdX staked by the staker.
3. The validator commission rate and the community tax (mainly set-up by the dYdX governance).
A simplified way of calculating rewards could be: Staking Rewards=(1x2)-3
Learn more about dYdX Chain staking rewards details on this page.
How to stake through Kiln and Fireblocks?
With the Kiln Connect Transaction Crafting API you can now stake dYdX using Fireblocks from our staking SDK.
To do so you will need the wallet-compressed pubkey, a method to retrieve it is shown on our dedicated documentation: https://docs.kiln.fi/v1/connect/sdk/dydx
Get in touch with our team who can guide you through this process!
How do Kiln and Fireblocks let you interact with your dYdX stakes?
Thanks to the Kiln Connect Transaction Crafting API you can:
- Stake by crafting a delegation transaction to the validator address provided.
- Withdraw rewards that will be instantaneously transferred to your wallet.
- Unstake by crafting an undelegate transaction. Your stake will then enter a 30-day unbonding period.
- Redelegate your stakes by crafting a redelegate transaction from a validator to a new validator. This allows you to skip the 30-day unbonding period.
- Sign a transaction by specifying the integration and the crafted transaction.
- Broadcast a signed transaction.
- Decode a serialized transaction previously crafted. This allows you to retrieve additional details about the transaction.before broadcasting it, including information such as gas fees, function parameters, and more.
About dYdX
dYdX is the most powerful open trading platform for advanced crypto financial products, powered by the Ethereum blockchain. Trade perpetual contracts with low fees, deep liquidity, and up to 20x more buying power.
About Kiln
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake assets, and to whitelabel staking functionality into their offering. Our platform is API-first and enables fully automated validators, rewards, and data and commission management. With over $3 billion crypto assets being programmatically staked, Kiln has a particularly strong track record on Ethereum as we run about 4% of the network; this includes 35,500+ validators with 0 slashing events. Kiln is SOC2 Type 2 certified.
