Introduction

Looking for the next big point program for DEX trading? With competition in DeFi heating up, Paradex might be your best bet. They’re allocating a whopping 15% of their total token supply to Season 2 of their Points Program. Unlike many other protocols, Paradex hasn’t been overrun by whales — at least not yet — partly due to a secret, evolving XP formula that keeps exploiters on their toes.

In this article, we’ll break down:

What Paradex is (and why it matters).
The Points Program and how to farm effectively.
Valuation insights: comparing Paradex’s potential FDV with other perp DEXes.
Risks & disclaimers (no free lunch in DeFi).
Next steps to get involved.

1. What Is Paradex?

Paradex is a Perps DEX built on Starknet stack. But you don’t actually need funds on starknet, onboarding is easy! It launched its mainnet in February 2024, and Season 2 of its Points Program began in January 2025, set to end around July — when they plan to do their TGE (Token Generation Event).

Key Backer: Paradigm — the giant in trading doing 40% of options volume on Deribit! Nice team and not a VC fund
Real Volume: They’ve processed $142M+ so far. Not mind-blowing, but definitely not a ghost chain. And they have just started growing!
Standout UX: Paradex is surprisingly smooth — sometimes feeling better than some bigger L2 DEXes like Hyperliquid.
Roadmap: Big expansions planned — Spot trading, multi-collateral, per options, an AI-driven vault management system, etc. (See full docs: Paradex Roadmap Link).

2. The Points Program & How To Farm

For different activities you earn XP, that’s later convertible to the upcoming $DIME token airdrop. 15% of the total token supply is earmarked for Season 2. This is no small allocation.

Ways to Earn XP

Trading: The more you trade, the more XP (both maker & taker volume).
Liquidity Provision: Maintain tight spreads on undertraded pairs.
Vault Deposits: Paradex’s Vaults also generate XP for depositors.
OI: Maintaining open trading positions gives XP
Frequent Usage: The team rewards consistent users, referrers, testers of new features, active Discord members, etc.
Even Liquidations: you get XP if you get liquidated — not recommended but technically a point-earning event.

Why The Formula Is Secret

Paradex regularly updates its XP logic to deter wash trading and sybil behavior. They might reward additional XP for low-volume pairs or advanced order types, but no one knows the exact weighting. This keeps farmers guessing and hopefully encourages genuine activity.

Steps to Start on Paradex

Bridge Funds:

Use Native L1→L2 Bridge https://app.paradex.trade/r/alphaentropy

or use LayerSwap if you’re coming from another L2.

2. Deposit Collateral: Choose how much USDC or other supported assets you want to allocate.

3. Start Trading: Focus on real volume — avoid obvious wash cycles.

4. Keep an Eye on New Features: XP boosts often come with protocol updates (like Perpetual Options, new vault strategies, etc.).

Referral Link for Extra Benefits

If you want to reduce fees or snag rebates, use https://app.paradex.trade/r/alphaentropy. It’s a partner code that offers better perks than the standard ones floating around.

3. Valuation Insights

Let’s talk potential FDV. We compared Paradex’s daily volume and open interest with other perp DEXes:

If Paradex is already outdoing AEVO in volume, it could claim at least a $250M FDV in a “bear” scenario, implying a $37.5M airdrop for Season 2 → roughly $0.34 per point. On the bullish side, if they reach Drift-level valuations of $1B FDV, that’s $1.36 per XP point!

So we can expect XP price from 0.2$ to 1,4$

(Note: This is speculation; market conditions can drastically affect FDV.)

4. Key Risks & Disclaimers

Wash Trading Penalties: They’re serious about slashing XP for suspicious activity. Don’t try to game it.
Volatile Valuations: Just because other DEXes have high FDVs doesn’t guarantee Paradex the same.
Market Timing: The TGE is planned around July 2025, but timelines can shift if conditions change.

5. Next Steps

Start Earning: You’re not late — 15% of the total supply is up for grabs this season, compared to 5% from Season 1.
Experiment: Try undertraded pairs or new features; the XP formula might reward you more.
Stay Updated: Paradex’s Discord and Twitter often hint at new ways to earn bonus XP.
Look Ahead: Vaults, multi-collateral, and additional expansions are on the horizon, bringing even more ways to engage (and presumably farm).

Conclusion

Paradex’s Points Program could be one of 2025’s best airdrop opportunities on Starknet. With a substantial token allocation, user-friendly platform, and growing volume, it checks many boxes for active DeFi participants looking to farm XP. Of course, no guarantees in DeFi — but if you’re comfortable with the risks, this might be a bet worth taking.

Ready to farm?

Sign up, use my freind’s referral link https://app.paradex.trade/r/alphaentropy , trade responsibly, and see if Paradex meets your DeFi airdrop strategy.

Stay tuned for Part 2, where we’ll explore Paradex’s Vaults and how they further differentiate this DEX from the pack.

Links:

Paradex: https://app.paradex.trade/r/alphaentropy
docs: https://docs.paradex.trade/documentation/getting-started/what-is-paradex
Stats: https://www.paradex.trade/stats
Paradex token $DIME: https://www.paradex.foundation/blog/introducing-dime-the-native-token-of-the-paradex-network
Roadmap: https://docs.paradex.trade/documentation/getting-started/roadmap

Disclaimer: None of this is financial advice. Always DYOR and trade within your risk tolerance. Happy farming, degens!