It's All So Derivative

dYdX is caught between a storm of narratives. Its recent token unlock creates an overhang on short-term price, but its transition to a fee-accruing model for tokenholders presents a long-term opportunity. The protocol has strong fundamentals being a category winner in a winning category with clear catalysts for growth as attention returns to the crypto markets. The potential returns for DYDX stakers can be calculated by assuming trading volumes and fees. At a 50% staking ratio, stakers would earn an annual yield of 6% if all volume from V3 migrates to V4. While incumbents in other sectors like OpenSea have been dethroned over the bear market, dYdX is well-positioned to grow thanks to its recent upgrades.