Add JUP-USD to the dYdX Chain

Hi everyone, we’d like to propose adding a JUP-USD perpetual market to the dYdX Chain. JUP had a successful launch with strong trading volume and is yet to be listed as a perp on major CEXs. We think this is a great opportunity to illustrate dYdX’s ability to add new markets quickly and finally be competitive with market listings!

Summary

Wintermute is proposing to add JUP-USD to the dYdX Chain.

Motivation & Rationale:

JUP is the native token of Jupiter the leading DEX aggregator on Solana. It recently launched with a current market cap of ~$900M and a 24hr trading volume of ~$500M. Jupiter is currently a major industry leader and a focal point of the Solana ecosystem and we think listing JUP on the dYdX Chain as early as possible will be a great win for dYdX. We also think it presents a great opportunity for Solana users who wish to trade JUP perps to check out the dYdX Chain.

Specification

Using the newly released market listing UI, we are proposing to list JUP as a long-tail asset given its market cap, age, and trading volume.

Oracles: Kucoin, Okx, Binance, Bybit, Gate, Mexc

Liquidity tier: 2

Initial Margin Fraction: 0.20

Maintenance Margin Fraction: 0.10

For further information regarding market listing parameters, please refer to the docs.

Next Steps

Assuming there is positive sentiment towards this listing, we will proceed with an on-chain vote very soon.

6 Likes

The proposal is now live! Mintscan

2 Likes

Chaos Labs’ Analysis

Chaos Labs supports the addition of JUP-USD to the dYdX Chain and recommends listing under liquidity tier 2. In line with the criteria for introducing a new market as detailed in the v4 documentation, we present our analysis and the rationale behind our recommendation for JUP’s listing.

Analysis

JUP is currently listed for spot trading on exchanges including Kucoin, OKX, Binance, Bybit, Gate, and MEXC, marking its launch on January 31, 2024. Due to the recent launch, the asset does not have any 30d trading volume data yet. As a proxy, we use its 24-hour trading volume on the exchanges listed above, which is $241,944,642. With aggregate liquidity of $545,067 within a ±2% range, JUP’s price stability is deemed robust enough against potential manipulation, qualifying it for listing on the dYdX Chain.

Notably, Binance’s recent addition of a perpetual market for JUP has achieved over $124 million in 24-hour trading volume, highlighting JUP’s potential to attract substantial trading activity to dYdX.

Liquidity Tier Recommendation

JUP fulfills the requirements for a Long-Tail asset as defined in the dYdX v4 documentation, and therefore, we suggest categorizing it under liquidity tier 2.

As outlined in the v4 documentation, liquidity tiers specify the margin requirements needed for each market and should be determined based on the depth of the relative market’s spot book as well as the token’s market capitalization.

JUP aligns with 4 out of 6 Oracle requirements, demonstrating liquidity greater than $50k on both sides. Kucoin and Bybit are nearing this benchmark with liquidity at $40k and $47k, respectively. The absence of 30-day spot trading volume data necessitates the use of its significant 24-hour trading volume of over $241 million as a proxy. Below are the volume and liquidity depth metrics for JUP:

Given the limited number of Oracle sources meeting the liquidity criteria and the brief history of trading volume, we classify JUP as a long-tail asset, recommending a liquidity tier of 2.

4 Likes

An issue was identified with the add market widget, specifically affecting proposals, like this one.

The problem has been swiftly addressed with a fix now live.

For detailed information and our suggestions on handling the current JUP-USD proposal, please view our latest post:

the dYdX Ops SubDAO

1 Like

Thanks

We have redeployed the proposal under the new fix Mintscan

4 Likes