[DRC] Add WIF-USD to the dYdX Chain

dYdX Chain
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A proposal was recently listed on Mintscan for a WIF-USD market. Chaos Labs supports the addition of WIF-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 WIF’s listing.

Analysis

WIF is currently listed for spot trading on exchanges, including Binance, MEXC, Kraken, KuCoin, OKX, and Gate, with its launch on December 12, 2023 (CoinGecko). Recent 24-hour Perpetual volumes for WIF have also recently been north of $1.3b, showing interest in trading it. With aggregate liquidity of $1.5m within a ±2% range, WIF’s price stability is deemed robust enough against potential manipulation, qualifying it for listing on the dYdX Chain.

Liquidity Tier Recommendation

WIF 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.

WIF 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. WIF’s recent 24-hour spot trading volumes are $370m, qualifying it as a Long-Tail asset on the dYdX Chain, due to seeing less than $100m average daily volumes.

Below are the volume and liquidity depth metrics for the proposed WIF oracle sources:

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Given that it meets the Long-Tail criteria with 6 qualifying oracle sources, we suggest listing WIF at a liquidity tier 2.

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there needs to be some better criteria than the ones DYDX has used for listing new tokens. I dont get the rush to list a new token that is simply untradeable. THis is a trading platform here at DYDX yet a very large percentage of the micro and small cap tokens simply do not have even close to the liquidity provided for users to trade them.

It is extremely dangerous quite frankly, given the high leverage DYDX provides and without a liquid market it is quite easy for a user to get completely wiped out in the low liquidty.

greater incentives should be provided to market makers who wish to attempt to make a market on these micro cap tokens. otherwise I dont get what there listed does, you cannot trade a token that does not have a robust orderbook .

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