Abstract
The project behind AI16Z has formally initiated a migration and rebranding process. As announced, AI16Z will be converted into the token ELIZAOS at a 1:6 ratio. To protect dYdX Chain trader, we therefore propose to wind down the AI16Z‑USD market on the dYdX Chain. The community may at a later date consider listing the new ELIZAOS‑USD market.
Motivation/Rationale
Major centralized exchanges, such as Binance and Bybit, have begun withdrawing support for AI16Z in light of its official migration to a new token, ELIZAOS. As a result, the liquidity and utility of AI16Z are rapidly diminishing, undermining its relevance as a tradable asset.
Because dYdX relies on oracles that source prices from centralized venues, reduced market support directly impacts oracle reliability. Continuing to support AI16Z-USD risks mispricing, failed settlements, and poor user experience on the platform. Delisting AI16Z-USD now prevents future complications and aligns with dYdX’s principles of proactive market risk management.
Specification
The dYdX Chain governance framework allows for a market to be wound down by assigning it the `FINAL_SETTLEMENT` status. If this proposal is approved, all open positions on AI16Z-USD will be closed using the last reliable oracle price, and all outstanding stateful orders will be canceled accordingly.
Next Steps
In the absence of strong objection, we plan to submit an on-chain proposal to initiate the final settlement process for AI16Z-USD in the near future.