[DRC] Add RNDR-USD to the dYdX Chain

dYdX Chain
1

A proposal was recently listed on Mintscan for an RNDR-USD market. Chaos Labs supports the addition of RNDR-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 RNDR’s listing.

Analysis

RNDR is currently listed for spot trading on exchanges, including Binance, Coinbase, MEXC, OKX, Bybit, Gate, KuCoin, Kraken, and HTX, with its launch on June 14, 2020 (CoinGecko). Recent 24-hour Perpetual volumes for AGIX have also recently been north of $260m, showing interest in trading it. With aggregate liquidity of $2.2m within a ±2% range, RNDR’s price stability is deemed robust enough against potential manipulation, qualifying it for listing on the dYdX Chain.

Liquidity Tier Recommendation

RNDR 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.

RNDR aligns the Oracle liquidity requirement at 8 out of 9 Oracle sources, with HTX liquidity close to the desired $50k on each market side. Using an HTX feed where alternatives do not exist is recommended only, so we recommend using the other 8 price sources regardless. Below are the volume and liquidity depth metrics for RNDR:

Liquidity across CEXs
Liquidity across CEXs1920×869 151 KB

Given that it meets the Long-Tail criteria, we suggest listing RNDR at a liquidity tier 2.

3 Likes
2

We also support this listing and also think a tier-2 is appropriated. This is based on the same reasoning framework that we have for all volatile tokens. Even though they have significant market-depth today, most of these metrics have improved only during the last few months with enormous standard deviations to the mean. Therefore we recommend to wait for at least one-to-two quarters of stabilized data-points to consider a tier-1 raise.

We will vote YES to support the addition of the asset under these conditions.

pro-delegators-sign

1 Like
3

is anyone coming back and realizing the liquidity for some of these new issues is aboslutely atrocious so much so the issue is not tradeable? I mean there is a 5-7cent spread on FET_USD. thats not tradeable. 25 cent spread on RNDR. its not really tradeable. need someway to incentivize people to market make for those markets.

2 Likes
4

image
image368×886 58.6 KB

RNDR today

1 Like
5

yeah i mean a 30% spread thats not even close, and it also means you couldnt get in and out with even 100 shares let alone 1000 or 10000. I dont get the desire to keep onboarding new tokens in this fashion just to pretend like they are supported. need to get rid of some of the fee rewards on generic trades and taker trades. and

Incentivize smaller trades to attempt to make a market in some of these illiquid turds