dYdX Trading Arena: Community Update on Trading Competition Platform

[eguegu]

dYdX Trading Arena: Community Update on Trading Competition Platform

Overview

Dear dYdX Community,

Our CryptoLearningClub (CLC) team has been developing the “dYdX Trading Arena” platform since January 2025, supported by the dYdX Grants program with a total funding of $59,000 (including $10,000 prize money for the first competition). We are pleased to announce that the first phase has been completed and the platform has officially launched at https://dydxarena.com/.

This platform provides an environment where KOLs (Key Opinion Leaders) and community leaders can host trading competitions for promotional purposes. Trading competitions are one of the most effective methods to attract new users to trading platforms, and by offering rewards for participation and trading profits, we aim to improve user onboarding and increase awareness of the dYdX exchange.

First Competition Results

In collaboration with DEG san, who manages Japan’s largest cryptocurrency trader community, we are simultaneously hosting two different trading competitions with a total prize pool of $10,000 (funded from the grants):

1. DEG Sprint Challenge (1-week short-term intensive competition)

   • Period: April 22 - April 28, 2025
   • Prize Pool: $3,000
   • Minimum Participation Margin: $300

2. DEG Marathon Masters (3-week medium-term strategy competition)

   • Period: April 22 - May 12, 2025
   • Prize Pool: $7,000
   • Minimum Participation Margin: $1,000

Both competitions distribute prizes based on ROI (Return on Investment) rankings during the competition period. The baseline is calculated as “initial assets + total deposits during the competition - total withdrawals during the competition,” PnL (Profit and Loss) is calculated as “final assets - baseline,” and ROI is calculated as “PnL / baseline.”

Currently, 132 people have registered, and 105 of them have completed the required deposits and are actively participating in the competitions. This strong response demonstrates the high demand for community-driven events.

Main Platform Features

The dYdX Trading Arena offers the following features:

1. Competition Creation Function

   • Hosts can set up their own trading competitions
   • Configuration of competition title, description, and image
   • Setting minimum/maximum number of participants and minimum deposit amount
   • Setting the total prize pool and distribution rules
   • Timeline setup (registration period, competition period, reward distribution)

2. Registration and Participation Management

   • Simple registration process through wallet connection
   • Automatic verification of minimum deposit requirements
   • Management of participant status (registered, active, disqualified, completed, canceled)
   • Automatic verification of eligibility at the end of the registration period

3. Performance Tracking System

   • Automatic snapshot of initial assets
   • Hourly PnL (Profit and Loss) updates
   • Monitoring of deposits and withdrawals and reflection in the baseline
   • Automatic calculation of ROI (Return on Investment)
   • Real-time leaderboard updates

4. Results Processing and Prize Calculation

   • Final performance measurement at the end of the competition
   • Generation of final rankings based on predefined rules
   • Automatic calculation of prize distribution
   • Display of comprehensive final results

5. Statistics and Analysis Functions

   • Display of platform-wide statistical data
   • Total number of competitions held
   • Total number of participants
   • Total amount of prizes distributed

6. Security Features

   • Secure design that does not hold private keys
   • Use of signatures solely for address verification
   • Complete self-responsibility in user asset management

These features enable traders to fairly compete based on skill, and communities to host competitions with on-chain verifiable transparency.

Future Outlook

This project is planned for an 8-month development and operation period, and is currently operating in its first phase as a “permission-based platform.” To prevent spam attacks and impersonation, we are operating on a permission basis for the time being, but aim to transition to a “permissionless” platform where anyone can host competitions in the future.

Request for Community Feedback

With the cooperation of the DEG community, the first competition has been successful, but we would like to collaborate with KOLs who have trader communities worldwide to further revitalize the dYdX ecosystem.

Feedback from the community is essential for future platform improvements. We welcome your opinions on the following points:

• Competition formats
• How to use community pool funds
• Platform usability and desired additional features
• Those interested in hosting competitions as KOLs

Please share your opinions in the comments section.

Links

• Trading Arena: https://dydxarena.com/

• Grants information: https://www.dydxgrants.com/grants/trading-competition-board

• DEG Server Pachinko King Championship

• DEG Server Smart Trader Certification Battle

CryptoLearningClub

[charles]

Dear @eguegu san,

Huge congrats on launching the dYdX Trading Arena! !

Your innovative platform, backed by the dYdX Grants program, is set to massively expand user onboarding with exciting trading competitions.

Kicking off with a $10,000 prize pool alongside DEG san is fantastic!
Thrilled for your success and can’t wait to see what’s next.
Keep it up! !

Charles

PS: I keep vivid memories of our IRL meeting in Mejiro .
From discussion to a live product, you made it happen. You guys are inspiring

[eguegu]

We are pleased to share the results of our recently completed “DEG Server Pachinko King Championship” trading competition on the dYdX Trading Arena platform.

The DEG Server Pachinko King Championship was a 1-week intensive competition that ran from April 22 - April 28, 2025, with a prize pool of $3,000.

Competition Results

Final Outcome - Top Winners

Rank	Trader	ROI	PnL	Prize
1st	ウシ	259.88%	$1,297.66	$1,500
2nd	Ray2	163.33%	$508.95	$500
3rd	hitosi	151.02%	$455.11	$400

The competition showcased exceptional trading skills from top performers, with the winner achieving an impressive ROI of nearly 260% in just one week! Congratulations!

Participation Statistics

• Registration Number: 79 total registered participants
• Participant Number: 52 actual traders (65.8% participation rate)
• Profit Traders: 15 (28.8% of participants)
• Loss Traders: 31 (59.6% of participants)
• Break-Even Traders: 6 (11.5% of participants)

Financial Summary

• Total Prize Pool: $3,000
• Total PnL: $-3,502.43 (negative overall result)
• Total Profit: $3,398.91 (from profitable traders)
• Total Loss: $-6,901.34 (from losing traders)
• Total Deposits: $19,441.80
  • Initial Deposits: $17,592.77
  • Additional Deposits: $1,849.04
• Total Withdrawals: $1,008.39

Performance Metrics

• Average Profit: $226.59 per profitable trader
• Average Loss: $-222.62 per losing trader

Platform Benefits Analysis

The DEG Server Pachinko King Championship has provided valuable insights into the effectiveness of trading competitions as a growth strategy for the dYdX platform:

1. Direct Revenue Generation

   • Platform gained $3,502.43 from trader losses
   • Against $3,000 investment in prizes

2. Liquidity Enhancement

   • Nearly $20,000 in trading capital introduced to the platform
   • Improved market depth and trading conditions

3. User Acquisition Efficiency

   • 65.8% activation rate from registration to participation

4. Business Model Validation

   • Trader losses exceeding prize costs creates positive-sum model for platform
   • Competition format proven financially sustainable(need more competitions to simulate)

Conclusion

The DEG Server Pachinko King Championship has demonstrated that our trading competition format is not only an effective marketing strategy but also a financially sustainable model that enhances platform liquidity and user engagement. The competition paid for itself and generated additional revenue while bringing new active traders to the dYdX ecosystem.

With the strong participation metrics, we are confident that this competition format represents a sustainable and scalable approach to platform growth. We are continuing to gather feedback and improve the platform as we prepare for future events.

The DEG Server Smart Trader Certification Battle (3-week event with $7,000 prize pool) is still ongoing until May 12, 2025. We look forward to sharing those results as well.

Thank you to everyone who participated and helped make this first competition a success!

[eguegu]

The DEG Server Smart Trader Certification Battle Results

We’re excited to share the results of The DEG Server Smart Trader Certification Battle on dYdX Trading Arena. This competition featured a $7,000 prize pool and showcased exceptional trading talent.

Final Outcome - Top Winners

Rank	Trader	ROI	PnL	Prize
1st	imomoo1	1,443.1%	$14,513.02	$2,500
2nd	dking	227%	$3,108.35	$1,500
3rd	zentsu	137.56%	$1,378.09	$1,000

The winner’s remarkable 1,443% ROI highlights the exceptional talent participating in this competition!

Participation Statistics

• Registration Number: 73 registered participants
• Participant Number: 53 active traders (72.6% participation rate)
• Profit Traders: 19 (35.8% of participants)
• Loss Traders: 31 (58.5% of participants)
• Break-Even Traders: 3 (5.7% of participants)

Financial Summary

• Total Prize Pool: $7,000
• Total PnL: $4,193.32 (positive overall result)
• Total Profit: $26,851.04 (from profitable traders)
• Total Loss: $-22,600 (from losing traders)
• Total Deposits: $71,078.02
  • Initial Deposits: $54,622.85
  • Additional Deposits: $16,455.17
• Total Withdrawals: $22,198.26

Performance Metrics

• Average Profit: $1,413.21 per profitable trader
• Average Loss: $-729.03 per losing trader
• Profitable Trader Percentage: 35.8%

Conclusion

This competition was a major success with strong participation and impressive returns. The positive overall PnL and high engagement have created significant excitement within our community.

Stay tuned for our upcoming analysis of trading volumes and fee generation from this and previous competitions, which will offer further insights into the value of our competition format.

Also if you’re interested in hosting a trading competition for your community, please reach out to us directly.

[charles]

Hey CLC team, kudos for creating a stellar platform in the dYdX ecosystem! Your thorough updates, openness to feedback, and strong contributions really stand out. Thanks for all you do!