[DRC] Add GRT-USD to the dYdX Chain

[chaoslabs]

A proposal was recently listed on Mintscan for a GRT-USD market. Chaos Labs supports the addition of GRT-USD to the dYdX Chain and recommends listing under liquidity tier 1. 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 GRT’s listing.

Analysis

GRT is currently listed for spot trading on exchanges, including Binance, Coinbase, MEXC, Bybit, OKX, KuCoin, Kraken, Gate, and HTX, with its launch on December 16, 2020 (CoinGecko). Recent 24-hour Perpetual volumes for GRT have also recently been north of $232m, showing interest in trading it. With aggregate liquidity of $2.1m within a ±2% range, GRT’s price stability is deemed robust enough against potential manipulation, qualifying it for listing on the dYdX Chain.

Liquidity Tier Recommendation

GRT fulfills the requirements for a Mid-Cap asset as defined in the dYdX v4 documentation, and, therefore, we suggest categorizing it under liquidity tier 1.

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.

GRT aligns the Oracle liquidity requirement at 8 out of 9 Oracle sources. All 8 of these are both robust and queryable sources according to the dYdX listing criteria. Below are the volume and liquidity depth metrics for the proposed GRT oracle sources:

Given that it meets the Mid-Cap criteria with 8 qualifying oracle sources, with an average of over $100m in spot trading volume, we suggest listing GRT at a liquidity tier 1.

[Govmos]

We would support a tier-2 listing at the present time. This asset don’t pass the price volatility criteria of our due diligence. The liquidity depth is barely passing the tier-1 requirements. In the event of a mean reverse, the liquidity thresholds wouldn’t be met anymore. This is why we recommend a cautious approach for these kind of tokens which have more than tripled during the last couple of months. We recommend at least a quarter of reduced volatility with sufficient market depth to back a tier-1 listing. For the present time we will vote NO to this proposal.