Hi dYdX Community,
Based on further data from the six weeks of the Loss Rebate Program, we propose extending the program through February 2026 to support continued trader retention while onboarding new traders and driving sustained market activity.
Since launch, during the six weeks of the program:
- $150,000 in DYDX has been allocated across 288 addresses, of which 237 are unique, indicating broad participation across the dYdX trading community.
- 72 addresses have claimed their loss rebates so far. Loss rebate claims are currently live for December, with the first January distribution subject to community approval.
- Traders receiving loss rebates have generated $4.2B in trading volume, representing 12% of total exchange volume, and $165K in trading fees, accounting for 25% of total protocol fees generated during the period.
This performance highlights the Loss Rebate Program as a highly positive ROI incentive, effectively retaining high-impact traders while contributing meaningfully to protocol revenue.
For February, the Loss Rebate Program will focus on liquidation events, rather than broader realized losses. Under this structure, traders liquidated on non-BTC perpetual pairs will be eligible to receive a rebate on a portion of their losses.
This refinement is intended to allow the community to:
- Onboard new traders during periods of heightened market volatility, when liquidation risk is elevated and incentive support can meaningfully reduce participation friction,
- Retain high-impact traders who contribute significant trading volume and fee generation to the protocol, reinforcing sustained activity rather than short-term usage,
- Gather higher-confidence data to inform whether the Loss Rebates Program should be future adjusted, scaled, or discontinued.
We propose allocating up to $1M in DYDX to fund the Loss Rebates Program throughout February 2026.