dYdX’s Strategic Rebound: Evaluating the Impact of Telegram Trading and Fee-Sharing on DeFi Growth in 2025

The decentralized finance (DeFi) sector in 2025 is at a crossroads, marked by both innovation and consolidation. dYdX, a once-dominant perpetual trading platform, has faced significant headwinds, including a sharp decline in earnings and total value locked (TVL). However, its 2025 roadmap—centered on Telegram trading integration and a novel fee-sharing model—signals a strategic pivot to reclaim relevance in a competitive landscape. This analysis evaluates whether these initiatives can catalyze a rebound for dYdX and, by extension, Ethereum’s DeFi ecosystem.

Telegram Trading: Bridging Social Engagement and Onchain Activity

dYdX’s decision to launch Telegram trading in September 2025 is a bold move to tap into the platform’s 1 billion monthly active users, particularly the 18–34 demographic [1]. By acquiring Pocket Protector, a social trading app, dYdX has enabled seamless perpetual swap trading within Telegram, supported by $3 million in monthly rewards for early adopters [3]. This integration reduces friction for onboarding, as users can now trade without leaving their preferred communication app. Social login options via Google, Apple, or Passkey further simplify the process, addressing a key pain point for traditional DeFi platforms [2].

The strategic logic is clear: Telegram’s user base represents a vast, untapped audience for DeFi. By embedding trading directly into the app, dYdX is not only lowering barriers to entry but also leveraging the platform’s viral potential. For instance, a user could trade based on a friend’s recommendation or a group chat’s collective insight, creating a network effect that aligns with DeFi’s ethos of accessibility and community-driven growth.

Fee-Sharing Model: Incentivizing Liquidity and Volume

Complementing the Telegram initiative is dYdX’s Partner Fee Share program, which allocates up to 50% of protocol fees to liquidity providers and volume contributors [1]. This model is designed to create a “growth flywheel,” where increased trading activity generates higher fees, which are then redistributed to incentivize further participation. The program is paired with 25% protocol fee buybacks, aiming to reduce token supply while boosting demand through staking and governance [3].

This approach addresses a critical challenge for dYdX: its TVL has plummeted from $1.1 billion in 2021 to $312 million in 2025 [1]. By aligning the interests of liquidity providers with the platform’s success, dYdX is attempting to rebuild depth in its order books. For example, a liquidity partner earning 50% of fees from a high-volume trading pair could reinvest those earnings into deeper liquidity pools, attracting more traders and compounding the effect.

Technical Upgrades: Enhancing Performance and Utility

Beyond user-facing initiatives, dYdX has prioritized technical improvements to bolster its infrastructure. A 98% improvement in API performance since April 2025 has enhanced reliability for programmatic trading and third-party integrations [4]. Features like customizable fee tiers and direct swaps between USDC and DYDX via Osmosis further diversify the platform’s utility [1]. These upgrades are critical for attracting institutional and algorithmic traders, who require low latency and flexibility.

The introduction of “designated proposers”—validators assigned to reduce trading latency—also underscores dYdX’s focus on execution efficiency [1]. In a market where milliseconds matter, such innovations could differentiate dYdX from competitors like Bybit and Binance.

Broader Strategic Vision: Spot Trading and Real-World Assets

dYdX’s roadmap extends beyond perpetuals to include spot trading and real-world assets (RWAs), such as contracts tied to public stocks and pre-IPO companies [1]. This diversification aims to capture a broader investor base, including those seeking exposure to traditional markets. By integrating with Solana and other blockchains, dYdX is also positioning itself to benefit from cross-chain activity, which has grown as Ethereum faces scalability challenges.

Challenges and Risks

Despite these initiatives, dYdX faces significant hurdles. The DeFi sector is highly competitive, with platforms like Uniswap and SushiSwap dominating Ethereum’s TVL. Moreover, the success of Telegram trading hinges on user adoption and regulatory scrutiny—Telegram’s decentralized nature has drawn the attention of authorities in several jurisdictions. Additionally, dYdX’s Q2 2025 earnings of $3.2 million, an 84% drop from 2024 [1], highlight the urgency of restoring revenue.

Conclusion: A Calculated Bet on DeFi’s Future

dYdX’s 2025 strategy reflects a calculated bet on accessibility, incentives, and technical excellence. By integrating with Telegram, it is addressing the “cold start” problem for DeFi adoption, while the fee-sharing model seeks to rebuild liquidity and community trust. If these initiatives succeed, they could not only revive dYdX’s fortunes but also contribute to Ethereum’s broader DeFi renaissance. However, the path forward remains uncertain, and execution will be key. Investors must weigh the platform’s innovative vision against the risks of regulatory pushback and market saturation.

Source:
[1] DeFi platform dYdX plans Telegram trading in roadmap [https://cointelegraph.com/news/defi-dydx-telegram-trading-roadmap-earnings]
[2] dYdX Revolutionizes Trading with Social Features on Telegram [https://investx.fr/en/crypto-news/dydx-shakeup-platform-introduces-social-trading-with-perps-telegram]
[3] dYdX changes skin: rebranding, spotlight on Solana, and ... [https://www.mexc.com/kk-KZ/news/dydx-changes-skin-rebranding-spotlight-on-solana-and-free-deposits-the-new-phase-of-the-dex-begins/75989]
[4] dYdX Unveils 2025 Roadmap With Telegram Trading and Spot Market Expansion [https://coindoo.com/dydx-unveils-2025-roadmap-with-telegram-trading-and-spot-market-expansion/]