1 Project introduction
Dymension is the infrastructure of the modular blockchain and performs settlement layer functions. Users can quickly deploy, high-performance modular blockchains called RollApps. Dymension aims to solve the scalability issues faced by existing blockchains by providing a modular blockchain that is easy to deploy and extremely fast. Through innovative technical architecture, the project achieves efficient data processing and transmission, thereby supporting complex application scenarios and high-throughput transaction requirements.
The Dymension network organization is divided into three layers.
The front-end is RollApps, on which users can build games, DeFI, NFT, etc.
The backend is the Dymension hub, which acts like a server in a traditional web application. It orchestrates the network by handling requests from RollApps and facilitating communication between them (plus, it has an AMM to trade your favorite RollApp tokens).
Data is available on the network , which is used to store data and other information.
Main features and highlights of the project
Modular Blockchain (RollApps) : Dymension provides a flexible and efficient blockchain network through RollApps, allowing rapid deployment and upgrades to adapt to different application needs.
High speed and scalable : The core advantage of the project is its excellent performance and scalability, able to handle a large number of transactions while maintaining low latency.
Ecosystem support : Dymension provides developers and users with comprehensive documentation and tools to support the development and deployment of applications within the ecosystem and promote healthy ecological development.
2 main products
Dymension RDK
Dymension RDK (RollApp Development Kit) is the Cosmos SDK for RollApps. The Cosmos SDK is a development kit that comes pre-installed with several modules to speed up the build process . RollApps consists of two core services: client and server. The server is the application side, providing RollApp deployers with the ability to implement custom business logic and prepackaged modules. The client component, called dymint, is a replacement for Tendermint and is responsible for block production, node message dissemination, and inter-layer networking.
Most of the Cosmos SDK modules can be integrated into RollApp to build RollApp. Core modules inherited from the Cosmos SDK and IBC include:
Bank: Facilitates token transfers
Gov: on-chain proposals and voting
Upgrade: Handles software upgrades
IBC: Bridging Protocol
Additionally, additional smart contract frameworks have been developed and deployed, produced under different licenses:
Ethermint: EVM smart contract
CosmWasm: Wasm framework built by Confio and Cosmos contributors
Liquidity liquidity module
Dymension has an embedded AMM that serves as the centralized liquidity layer for the RollApp ecosystem. The AMM supports features such as cross-RollApp exchange, efficient token bootstrapping, and provides access to protocol incentives.
3 Ecological situation
According to the official website, there are 1,164 RollApps. The official Twitter highlights a few good ones. You can check the official Twitter: https://twitter.com/dymension/status/1730240802553577845
However, according to our investigation, Dymension’s ecology has just started, but the actual activity is very low.
Note that RollApp is now only deployed on the Froopyland testnet https://devnet.dymension.xyz/rollapps
From the perspective of TVL, RollApp’s TVL is very low, with the highest being 288,000 DYM, worth about US$1.5 million. We looked at these RollApp data and found that the number of active addresses is very low. Below are screenshots of the top 4 active data. We found that two RollApps only had one active address in the past 7 days, and the other two RollApps also only had double digits.
However, I think this is not a bad thing, because the Dymension mainnet has only been online for more than a month. Many times, after market conditions arrive, an ecological incentive plan can bring a large number of ecological projects and increase the demand for DYM.
4 Token Economy
Dymension is a POS mechanism L1 blockchain secured by DYM tokens. It is custom-built to provide security, interoperability and liquidity for RollApps.
Security — RollApp funds are secured by Dymension validators.
Bridging — RollApps connect to each other and the entire crypto economy through a single IBC connection to Dymension.
Liquidity - The only application logic in Dymension Hub that handles RollApp validity and bridging without strict constraints is the embedded Automated Market Maker (AMM).
Total amount of DYM: 1 billion
https://docs.dymension.xyz/learn/dymension/dym/distribution
Public launch: 8%
Genesis RollDrop and Incentivized Testnet
Fully unlocked at creation
Ecosystems and R&D, 20%
Allocated to the Dymension Foundation to promote ecosystem and R&D while ensuring long-term benefits
33% is available immediately, and the rest is unlocked linearly over 3 years
Incentive management, 33%
Hold and distribute protocol-owned funds for RollApp credit streams, RollDrop seasons, and AMM incentives
On-chain voting decision
Community pool, 5%
As a long-term treasury for the Dymension protocol
On-chain voting decision
Supporters, 14%
Reserved for partners providing funding and support
12-month lock-in period, followed by 24-month linear unlocking
Core contribution team, 20%
Reserved for past and future contributions from early contributing teams
12-month lock-in period, followed by 24-month linear unlocking
Judging from the white paper, DYM is initially unlocked at 14.6%, including 8% in airdrop incentives and 6.6% in the ecosystem. Then unlock every month
5 On-chain data analysis
Judging from the on-chain data, DYM’s currency holdings are very concentrated.
Coin holding address 1: Unlocked DYM
Coin holding address 2: Unlocked DYM
Position address 3: Guessed to be staking DYM
Position address 4: It is speculated to be official, and 25 million is pledged.
Position address 8: speculated to be the Binance exchange
Since the data support on the chain is relatively low, the data we obtain is relatively limited, but we can obtain the following information
1 The locked DYM data on the chain is consistent with the white paper, which represents the consistency of the project side.
2 The concentration of DYM currency holdings is very high, with the top 10 addresses concentrating 98% of the chips.
3 Binance exchange holds approximately 6.76 million DYM.
4 The amount of pledged DYM is very large, and some super large households have pledged it. The pledges of 10 million DYM, 13.26 million, and 4 million large households have been traced on the chain. It is speculated that this is an official action. It is estimated that there will be more than 50 million DYM staked.
