[DRC] Launch Incentives Season 5 - Distribution Proposal

[chaoslabs]

Simple Summary

A proposal to distribute $5M in DYDX tokens from the dYdX Chain Community Treasury to qualifying users. in trading season 5 of the dYdX Chain Launch Incentives Program.

Motivation

In line with the initial proposal shared with the community regarding the Launch Incentives Program, Chaos Labs will provide recommendations on the distribution of incentives to individual accounts.

These recommendations are derived following a detailed analysis of the season’s trading data, specifically looking to identify and address any artificial or wash trading. Our aim in this is to maintain the integrity and effectiveness of the program, ensuring that the incentives are fairly given to those participating in genuine trading activities on the platform. For a deeper understanding of how Chaos Labs identifies wash trading, please refer to our detailed blog post here.

The recommendations, the end-of-season report, and relevant data are openly published on the dYdX Chaos Labs Risk Portal. This transparency allows community members to see that accounts receiving substantial rewards contribute significant volume and generate actual fees on the platform. Those in the community who wish to verify this data independently can do so, as all information is verifiable on-chain.

Specification

In this allocation, $5M in DYDX tokens are proposed to be distributed across 2,700 accounts.

The value of DYDX in USD for this allocation is based on a 7-day Time-Weighted Average Price (TWAP) as of this proposal’s publication date (07/24/2024), where 1 DYDX equals 1.41 USD.

The complete list of accounts and their respective proposed incentive allocations is available here.

To view the historical trading data for each account, please visit the Chaos Labs portal here.

Implementation

The DGP will help create the proposal payload using these addresses and reward amounts. This will undergo the usual testing on the dYdX Testnet before being submitted for an on-chain vote.

Next Steps

Chaos Labs will sponsor a dYdX Chain on-chain proposal for the community to vote on the proposed incentive distribution early next week.

Copyright

Copyright and related rights waived via CC0.

Disclaimer

This post is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by Chaos Labs. No reference to any specific security constitutes a recommendation to buy, sell, or hold that security or any additional security. Nothing in this report shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or offer or provide investment advice or service to any person in any jurisdiction. Nothing contained in this report constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this report should not be taken as advice to buy, sell, or hold any security. The information in this report should not be relied upon for investing. In preparing the information in this report, we have not considered any particular investor’s investment needs, objectives, and financial circumstances. This information has no regard for the specific investment objectives, financial situation, and particular needs of any specific recipient of this information, and the investments discussed may not be suitable for all investors. Any views expressed in this report were prepared based on the data available when such views were written. Changed or additional information could cause such views to change. All information is subject to possible correction. Information may quickly become unreliable, including market or economic changes.

Throughout the program, Chaos Labs’ role is confined to providing recommendations regarding the allocation of rewards. The actual implementation and distribution of said rewards are subject to the formal approval process of the dYdX Chain governance votes. Any actions pertaining to reward distribution shall only be executed following affirmative governance votes within the dYdX Chain framework.

[RealVovochka]

what about Staking dydx multiplier? I think it can be public so it can motivate people to stake

[tttt]

Last season, I run a program and find 337 wallet seemed to be rewards-bot-farm for new deposite bonus. Just now I run the program and get 117 user list(I only scan part of the list) , which seemed to be the same pattern. 1） Open a position and close it immediately, never hold a position，2） never active after season5 ends. 3） deposite just a bit more than 100USD, I list it as below
dydx1s2rgt5kfxuvzy7g950jhpgd3m69ytgnmsg9e9q dydx_rewards= 90 balance= 72.109565
dydx1x8yavrfqqd7fkl976qdeufqlfvx4ta05x3myhu dydx_rewards= 90 balance= 76.094488
dydx1mxpm62du6c9wqldjsrf0aq2fru56lugsx7qkxf dydx_rewards= 90 balance= 61.38885
dydx1agqepem3u75wupk7u9y8fr0vh4yjhuacs29vry dydx_rewards= 90 balance= 35.714784
dydx1rsq4d7m98kpsql4hv4jg009cq3uwlc0kdnjgmt dydx_rewards= 90 balance= 93.206867
dydx1hy607qcam3l2j2vakfap4pwxkatsq32uuqgmxn dydx_rewards= 90 balance= 76.362235
dydx1u4cw9k0r0am8tskqgmy4znml6r9uzaa3h4q2l0 dydx_rewards= 90 balance= 88.483478
dydx1mjj5aeyum0wf0j7039r95394yr0gwwdzjsvwgx dydx_rewards= 90 balance= 48.793146
dydx1fvzr32zlfds5u6vyp5sx3rldjzdgunw0evfgw4 dydx_rewards= 90 balance= 71.480573
dydx1eedgpgzfny7fu3vp2mtc2x0uf55mse680vaxvn dydx_rewards= 89 balance= 86.149693
dydx10fr2re4ruh483qdz0vklxnt94ye3a8kwr2zu2t dydx_rewards= 89 balance= 74.189946
dydx1lp902xu0u9pwmms542vk7wxrzhz3llxs9mtddk dydx_rewards= 89 balance= 75.673527
dydx1spe8muva660nwqh7tqmkn4yvqxhmmcdyttnn7k dydx_rewards= 89 balance= 98.600135
dydx17qc6y22gc6epdqye6jal5v3z90hp4jzxdg4nzp dydx_rewards= 89 balance= 80.066944
dydx1dw89vx6m490u0cfal2awgmv9dvtvlyjea3g8qz dydx_rewards= 89 balance= 76.00343
dydx15m992d0t209vc5f03mv2ky4k58r5znftvklvhr dydx_rewards= 89 balance= 93.246691
dydx1eut2pvylmzcqke0veru59lv5eup27fr4mkm92q dydx_rewards= 89 balance= 95.468387
dydx13mrzhetncq9trlr78t6c8amt54xg0cedq5p5tm dydx_rewards= 89 balance= 95.376121
dydx1a4ugcju3mpmf2qqvtjtyrs5hdhnra77kqg2ed4 dydx_rewards= 89 balance= 93.707871
dydx1uvg64qgc5s8qmt7vdujaqrxxdn20jlqcq85xa8 dydx_rewards= 89 balance= 88.67961
dydx1dn8mggvpvcu2lmvqgcfz8ygjsyklwa7kdayphq dydx_rewards= 89 balance= 85.54817
dydx1w20u67k4h6jsq2drvcp7p3gx32c5u4lt7rvt4d dydx_rewards= 89 balance= 83.382137
dydx1w664xtdgudh0unae4ewz78u9fsxs5uc8d3vac9 dydx_rewards= 89 balance= 82.723057
dydx1jjz0ddj0vdwjemdrsfqqccm92n9vvy0wkg3jfc dydx_rewards= 89 balance= 85.776217
dydx1j59xaqy9p7uzw30t2vxllhuyvyldd3hfg7askg dydx_rewards= 89 balance= 76.309999
dydx1j8ag27jv9n3eswknpg29xzhcuwwhs6wtddyh52 dydx_rewards= 89 balance= 79.116615
dydx1fsp7kq9gpx4d8md55x9f7u9u4s6577697m0prw dydx_rewards= 89 balance= 92.494025
dydx1umjhm80m64jffr7e6hz88q877ew7yk0uutex8h dydx_rewards= 89 balance= 96.306038
dydx15dwp2qg4l59hzsdnpx2hqy8hagsyhudqnlt04q dydx_rewards= 89 balance= 87.602358
dydx1cmsaufgq0y9xgxghrfx934vp8n8gfgqm3vtny5 dydx_rewards= 89 balance= 83.028023
dydx1eafukmx5uzpl5ujsett5md7ze8j6xz2k3xsw8y dydx_rewards= 88 balance= 77.974901
dydx14xktsgetvslrgwxzmlmxn8prsdetnku7ww2xvx dydx_rewards= 88 balance= 81.221887
dydx1568a8azyy33dl00xrc6vcml5qwry89waeptgu5 dydx_rewards= 88 balance= 65.081776
dydx13w8egw5s6y9tkhufn864a8lke4ja6twalx9whg dydx_rewards= 88 balance= 75.453409
dydx1lffv7ksenwv9hrjy4hmda848cqrm05dwezvpam dydx_rewards= 88 balance= 75.878207
dydx1q7d6wq26nrp4a3nlv0eqz0pzen7mq75wyd3xg9 dydx_rewards= 88 balance= 91.551114
dydx1p6fp9qwd0cj9yxc3rys9hsfselfuevljfrk8er dydx_rewards= 88 balance= 95.796666
dydx1zqjz29v04936wkyz5uccrhkh49uc8dp7ar76dw dydx_rewards= 88 balance= 96.454649
dydx1cxvc0dsuz2nfde8dq00kr957xjtcqnt9u7y284 dydx_rewards= 88 balance= 78.391964
dydx1ujej0m3nruxey5q90vdpucjg0n9e6af7h0dpc8 dydx_rewards= 88 balance= 96.443782
dydx1fgwechkwn3hz9nvghn2k9dasq7d090l0ryf2ju dydx_rewards= 88 balance= 86.005045
dydx1qh4x6nnryzjy0q92g83peh9u0v5hrhffz2k6zq dydx_rewards= 88 balance= 97.623137
dydx1hznelxpp88ljztca53nrvnahvg2s8w5k66hu2x dydx_rewards= 88 balance= 75.192327
dydx1wmgknq0jrtzuznpxlhmn36xu8wmqul7vnrhgta dydx_rewards= 88 balance= 73.841245
dydx13s3lnn34e9nr7n99glzt2qkyj9rmss9jcu4wcm dydx_rewards= 88 balance= 87.776897
dydx1my3lggtgzmv3avxss4ccqglda3fm58ey7xalgs dydx_rewards= 88 balance= 87.51542
dydx17aa04nq6msa79uyup3qvt0aj57ttejcqf724td dydx_rewards= 88 balance= 73.403125
dydx17dda325lplv7l433w0wwhkxdnug7ugmp6menzf dydx_rewards= 88 balance= 76.535438
dydx1gu8qdgh663704u2zrxxfh50dtslcv8tfp7n7te dydx_rewards= 88 balance= 30.811929
dydx17dd266wg5m2vpa2tjfyg07anu72sxn22uvfslp dydx_rewards= 88 balance= 98.650177
dydx1rkmk65ndj7m3ka5rna7hu2cl8fqpl8lzx7q2zn dydx_rewards= 86 balance= 94.307781
dydx170ystfyn4qepe44x3vgvlvt5tq4nlrrsuel9mg dydx_rewards= 83 balance= 65.097209
dydx199fa03qwe2ty7vnr6fadnxqltz49chl3u4fztj dydx_rewards= 82 balance= 66.506332
dydx10hq56h63y50zmv7w2ts9lnefdrt2uk7se2gsht dydx_rewards= 82 balance= 76.934706
dydx1p2985sw4mc6frvd5frgx2p8z6hlvqrzhyqwgv6 dydx_rewards= 81 balance= 78.590626
dydx19wda3tw9hffdme5hua00xzvuhj2adxk2yp3d52 dydx_rewards= 81 balance= 59.935358
dydx109xvtc99l6q6kdwepzdwr5mlge6lzstccrtkk4 dydx_rewards= 81 balance= 59.591876
dydx1dkzwxfe7yzvfmqd0scmgn3npcatsy24lpgmzey dydx_rewards= 81 balance= 76.679604
dydx19fgd8zuxascqtudflylcqe8gcgzx2ahv6prrz9 dydx_rewards= 81 balance= 58.919439
dydx1htt9xxg8ns6fdczrs7m8d7se5l8h9hcklfkw52 dydx_rewards= 81 balance= 58.836822
dydx1re4slwvd23aznsmry8qp9vzj8g0egz6y8ltu0d dydx_rewards= 81 balance= 54.758526
dydx14wvd5gap4wgah5z0yye5xxwl8sk03qrtyg3rpg dydx_rewards= 81 balance= 53.156051
dydx1u5pc5wapwvdr4k49prghsynn95mspqcfq7z4pv dydx_rewards= 81 balance= 67.096737
dydx1hrzjfm6qhq9qup8u5rkd6rdzy6qw2z280pwf6c dydx_rewards= 81 balance= 54.695627
dydx1pjjmygzc6vnwy8ju22fyf3tpv3aqg3xmm8844e dydx_rewards= 81 balance= 63.167294
dydx1cgrswz3x8le296g35lsu5llrx2p0rfgvnh4eg5 dydx_rewards= 81 balance= 64.830095
dydx14meyzu6upaznc0kle8rrgt8je2ahvh0n7xgmz8 dydx_rewards= 81 balance= 55.019986
dydx19sygqnq39pzsgkxuzf2fdy24wpe8xqekepfx4s dydx_rewards= 81 balance= 67.132943
dydx1tq2dh3qx6zhxrhe709cv9zgw7udpmeqjp97keh dydx_rewards= 81 balance= 54.873302
dydx18exqnx56zx8k73z7qcmxuwzxhnm6at7n63g3r7 dydx_rewards= 81 balance= 67.711043
dydx1zj76w2f8fyx9dws7al5xz5vccandeke933ags5 dydx_rewards= 81 balance= 83.785182
dydx1tykpwplr8xlgq70rcpssypd7etlj0jdhph88ue dydx_rewards= 81 balance= 54.698544
dydx14j49wvureljnr46twc83vzswykj5n35wdj94f4 dydx_rewards= 81 balance= 54.390154
dydx1jqdds9zwach6ga2g0cxt273vawk2lcyc0yljtd dydx_rewards= 81 balance= 57.085194
dydx1wy0u3kcutftnjckf2f4t4tu5rp8e7q5kq23vhm dydx_rewards= 81 balance= 59.97519
dydx1h2cgxuh6x8j70xmt52nqksz4ym70j4xs2qn2tg dydx_rewards= 81 balance= 61.97604
dydx15h8w4hpax05rhjccdd7paex8ml0mg5rg8x072x dydx_rewards= 81 balance= 76.304412
dydx1gk573f79h2kklu5twsfm6mvtpzx7859uejktfv dydx_rewards= 81 balance= 71.653775
dydx1m2csd2f2c7eg9cu7cam89zentg9xfru7xejnsr dydx_rewards= 81 balance= 56.732203
dydx1tsg9qlnzy4ccqgute6vhadxpmp4r3a6dhx85ps dydx_rewards= 81 balance= 55.484464
dydx1ksan9fm7dp0h6ssl5kdx4xjykaj7w9sy6nxlna dydx_rewards= 81 balance= 68.653644
dydx1fh80g85rzywwz6wcm73sxzlm28dqp4099vpkkn dydx_rewards= 81 balance= 66.264223
dydx1mhjl5qfgr3df9fsdlascp29scy66gm28znt6ge dydx_rewards= 81 balance= 56.95437
dydx17yhhph8sf09ch2tjsxl88a4jn8eq3z6037za66 dydx_rewards= 81 balance= 72.145499
dydx1vmfvx0j3vxgrwzecfs6zrjzdkmv9xgzd938fw5 dydx_rewards= 81 balance= 54.514357
dydx1l33l9z3hfmz0a5rqvplx2290qr5d9yfmx63m6q dydx_rewards= 81 balance= 71.218283
dydx1rg4p7l803dlqk7wrt74jz07sk8qztmynqf26wp dydx_rewards= 81 balance= 61.751452
dydx1hyh5y0dyzpfr04w2s6fkxqsfqgszx0p9s27vwe dydx_rewards= 81 balance= 64.104513
dydx1g5sppmaqaytt36gcnp28selkvjy2ukcezjwsav dydx_rewards= 81 balance= 71.993141
dydx17g73zva5ues3r7hkj6t40tm4u65k6m7xvhxhyr dydx_rewards= 81 balance= 61.452375
dydx1285e59x7afxgzfpml0tvhu0gue4d9g3hy03wx5 dydx_rewards= 81 balance= 53.957304
dydx10ggw6acj80xt35peecwxqxrakhd8el2f9dwruj dydx_rewards= 81 balance= 72.76126
dydx136cpjzap7ncqzlppaygzht523s98njz9mfacg6 dydx_rewards= 81 balance= 58.865844
dydx1c3tlrxlgfqfvhjwdem057cp9hnk9dsej66l8lw dydx_rewards= 81 balance= 58.401016
dydx1ztzedpq3esrukay4vftfgvsukf46rlmvhyh0r2 dydx_rewards= 80 balance= 67.017507
dydx16glfuaquha57z7xcv7mw6aajk0y62z5vzv4zdt dydx_rewards= 80 balance= 74.317378
dydx1wflyfkaq3mw8z9gdc678vw0anm2atpx9e70uc6 dydx_rewards= 80 balance= 69.939239
dydx1j0jhm3jfkvr7wg6xcvy95cty8vldyvcejq3vwl dydx_rewards= 80 balance= 61.397158
dydx13cs539plynsllwz96pqsfk0w5ga9wyqfhgj2n5 dydx_rewards= 80 balance= 78.203777
dydx15avp98uy3773trhd7w34ye6c4cn5gqvqmn8wu9 dydx_rewards= 80 balance= 70.510838
dydx1cmer3ahq2wkqwagm567wjvvugvv3jvh3q7w40j dydx_rewards= 80 balance= 69.663896
dydx186rpt6wrgapmt5zzean3z8ptj0q8u8fz5yudxr dydx_rewards= 80 balance= 64.970399
dydx1urlrfl75383xtuh526zhvwjtwvepdhfq7fjks6 dydx_rewards= 80 balance= 76.587418
dydx1kuawh84ls496szes7jas6jgtfzvcx4kq57gcv8 dydx_rewards= 80 balance= 63.512946
dydx1sxdee9ymud2qqdhzau2ppsmnkptjdlncpecyts dydx_rewards= 80 balance= 69.596444
dydx19d3k9uw64dm05m4dup0lc0eczvfu8f4dysmqyp dydx_rewards= 80 balance= 57.980341
dydx18w4kxfut2nrahqkng8wjl8kyqdj0sh2ugrka6l dydx_rewards= 80 balance= 65.534731
dydx1kcjee97glfp4qr37x85hzyvxl4qkf9ntqqzm30 dydx_rewards= 80 balance= 57.976795
dydx1kg5n47hu8sh2lk6v2q39knt70uam72ka95pr7l dydx_rewards= 80 balance= 77.998886
dydx1peulvcfq8c26k30lw627ne5gve02g2d06yz9k0 dydx_rewards= 80 balance= 60.361194
dydx1zt8nsdsj9hnq5p72yfxnr9q5untfv5rqjdrl0c dydx_rewards= 80 balance= 61.532749
dydx1u6erfq6g2ywxxkr054g945kfd6ptpjfrwe0gz4 dydx_rewards= 80 balance= 62.391498
dydx1j5ux3r0w4fwj4q27vjc7f8tv2upwq99rjrasje dydx_rewards= 80 balance= 64.543211
dydx14dqr929su9ftez2mcxhmcpa69q5x565hpgjsv3 dydx_rewards= 80 balance= 67.439849
dydx1dkxuf58vuxramc0sf4kng5jkzvswvkdefktq22 dydx_rewards= 80 balance= 58.239597
dydx1vd2mqt0z3p04feqprna0ym3fxa45u8lgadktpr dydx_rewards= 80 balance= 73.26673
dydx1r6et8ehza68yun6j8j8ujkqle9hqajn4s6qjc9 dydx_rewards= 80 balance= 69.503007

[RealVovochka]

man, put it in csv or in google sheets my eyes are bleeding ) so its easier to double check

[Lorony]

@tttt Great job. Much appreciated

[Shan]

Hey, I noticed my account (dydx1gk573f79h2kklu5twsfm6mvtpzx7859uejktfv) is on your list. But I’m not part of a bot farm. I have only this account. I got to know about this incentive program very recently So had to make quick trades to get on top of the list. I’m happy to provide any information or verification needed to prove it. Thank you.

[Shan]

I did about $100k in volume.

[Daisy]

Hi, I noticed my account (dydx1mjj5aeyum0wf0j7039r95394yr0gwwdzjsvwgx
) is on your list. I have only this account. I got to know about this incentive program very recently So had to make quick trades to get on top of the list. I’m happy to provide any information or verification needed to prove it. Thank you.
BTW, I don’t think it’s not allowed to make quick trade to get more points. It’s my strategy to get points, more fee and more points. And I am not making wash trading that trading each other all in oneself accounts.

[shuo]

I dont think its a big problem if some person is aiming to receive bonus using front end even if he has multiple accounts. It’s a reality in crypto nowadays.

I have checked the few accounts you provided, that they were not making wash trading that trading each other all in oneself accounts.

I think it may be a win-win activity as soon as it’s not wash trading. It brings the following benefits:

• It brings activity to the v4 platform and chain.
• It creates spreads profit for market makers and arbitrageurs.
• It generates fee income for stakers.

So in my opinion, this behavior has the advantages outweigh the disadvantages. We do not encourage this behavior of course, but there’s no need to be overly critical of it.

[shuo]

I think the following wash trading behavior is indeed more worthless. I found something looks like wash trading to gain top ranking for Platinum League in season 5.

[RealVovochka]

Guys, i do believe that most of these accounts are sybils

It’s not a rocket science. One point cost 0.024$ of taker fees (maybe little different now, it was like that in season3).
So close to the end of the Season somebody can check that earning points is profitable (you get more in rewards than paid in fees counting deposit bonus) . Because there is only few organic new depositors those accounts get these bonuses. It’s easy to check how are you going against other “new depositors” with a few SQL queries

It’s a leak in rewards program. It was there since season 3 when deposit bonus was introduced.

If you think the guys with millions of points doing something different - you are wrong.

It’s a rewards farming

My opinion most of the volume is there because of high stimulus from rewards, which is not sustainable

[tttt]

If you check the deposite bonus of the privous seasons, you will find most of the rewards distribute to the sybils.
For example, season 4, the sybils deposite 40usd, and get 100usd and never go back.
all the data is there, every one can check, this season, the sybils go back again, there rank is between 1100 ~ 1450,
it is so easy to identify those activities.
Chaoslabs said last season,they have no tolerance for the sybil activites, so lets see

[sagar]

I appreciate the work you have put in, I think there needs to be strict controls that needs to be put in place, Chaos labs took almost a week to finalise the rewards and such activities which were already highlighted last season should have been under review before this list was published, there is no point of having deposit bonus if it is not going towards intended audience

[tttt]

“should been under review is a joke”, I know I am wrong, but I won’t correct it ,because I am a professional institution-----Chaos Labs

[chaoslabs]

Thank you everyone for the feedback and for engaging in the design of the launch incentive program. To address the concern about the new deposit bonus, it was announced at the beginning of the season that the number of eligible addresses was reduced to the top 500 new accounts. The smallest volume for any account earning a new deposit bonus was $72,000, which is significantly higher than any sybil farming behavior. Additionally, the average season volume of an account earning the new deposit bonus was $977,000. We hope highlighting this data alleviates any concerns that accounts are being rewarded for merely showing up without contributing to dYdX.

[RealVovochka]

I disagree here.
72000$ with 0.05% taker fees its 36$ in fees since dydx has native program it’s less. I think there should be like $150k minimum volume for the deposit bonus. Or like some factor like using different markets.

It’s easy to make like a 100 buy-sell orders at btc, eth market and boom you qualified. Such activity should be economically unprofitable.

Of course it’s good for protocol to brag about hundreds of new users but lets be realists

[olegas]

@chaoslabs

(TWAP) as of this proposal’s publication date (07/24/2024), where 1 DYDX equals 1.41 USD

There will be proposals and voting for now. The token will be around $1
I see how systematically at the end of each season the token gives -30%.

[olegas]

When can we expect the last season?
Other promotions will stop blowing tokens into the air, with commission returns.
This greatly affects the price of the token. Over 5 seasons it fell from $4 to almost $1

[Lorony]

@olegas

Season 6 has already begun and is the last season so far.

The loss in $value is obvious, but that is also related to the overall market sentiment. Most coins/tokens peaked in March 24 and have since fallen back to bottom prices. Just a few are standing out… that’s what I observed.

[shuo]

I agree with you.

It’s a win-win activity as soon as it’s not wash trading. Everyone comes here to gain profits, and everyone gets profits because incremental
fees causes a positive feedback loop in terms of volume. Users and small fishes get more bonus by paying fees. Market maker and whales get bonus and spreads profits. Stakers get more rewards when more fees. Validators earn more commission when more staking rewards, even maybe MEV.

We are in the very beginning of dydx v4, it is best for us to tolerate these behaviors. They have not harmed any interests but have brought considerable market activity.