A proposal was recently listed on Mintscan for an ETHFI-USD market. Chaos Labs supports the addition of ETHFI-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 ETHFI’s listing.
Analysis
ETHFI is currently listed for spot trading on exchanges, including Binance, MEXC, Bybit, KuCoin, OKX, and Gate, with its launch on March 18, 2024 (CoinGecko). Recent 24-hour Perpetual volumes for ETHFI have also recently been north of $1.3b, showing interest in trading it. With aggregate liquidity of $4.1m within a ±2% range, ETHFI’s price stability is deemed robust enough against potential manipulation, qualifying it for listing on the dYdX Chain.
Liquidity Tier Recommendation
ETHFI 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. They should be determined based on the relative market’s spot book depth and the token’s market capitalization.
ETHFI aligns the Oracle liquidity requirement at 6 out of 6 Oracle sources. All 6 of these are both robust and queryable sources according to the dYdX listing criteria. ETHFI’s recent average 24-hour spot trading volumes are $283m, qualifying it as a Long-Tail asset on the dYdX Chain, due to only having 6 robust oracle sources currently.
Below are the volume and liquidity depth metrics for the proposed ETHFI oracle sources:
Given that it meets the Long-Tail criteria with 6 qualifying oracle sources, we suggest listing ETHFI at a liquidity tier 2.
