According to dydxfoundation, the dYdX (DYDX) token model has a distinctive staking mechanism where rewards are not paid through inflation by minting new tokens. Instead, staking rewards are funded entirely by protocol activity, primarily from trading and transaction fees. A key feature for traders and stakers is that these rewards are paid out in USDC, not the native DYDX token, which prevents the dilution of the token supply. Consequently, the Annual Percentage Rate (APR) is dynamic, fluctuating directly with the real usage and trading volume on the protocol, reflecting a yield based on actual economic activity.