[DRC] Delist Low Activity Markets on dYdX

Proposals
1

Simple Summary
This proposal seeks to delist certain dYdX markets with low activity levels. The aim is to improve block time and better allocate the platform’s resources to more active and liquid markets.

Abstract
Markets with limited activity can hinder the platform’s performance and user experience. This proposal outlines criteria for identifying such markets for delisting.

The criteria include the following thresholds:

  • For CEX providers: at least $100,000 in 24-hour trading volume and at least $10,000 ±2% liquidity.
  • For DEX providers: at least $5M liquidity in the pool.

Additionally, the markets on dYdX must have less than $1,000 in 24-hour trading volume and less than $10,000 in open interest. The delisting process aims to redirect the platform’s resources to more active markets, including liquidity vaults, validator computing resources, and marketing, thereby enhancing the overall user experience.

Note, markets that are delisted can be listed again in the future.

Motivation and Rationale
Maintaining low-activity markets requires MegaVault to continuously place orders and validators to continuously fetch prices, which results in an inefficient allocation of protocol resources. Further, liquidity deployed in underperforming markets could be more impactful in higher-demand markets.

By delisting low-activity markets, dYdX can allocate its resources more effectively and strengthen the performance of high-demand markets. This approach ensures the platform remains robust and attractive to traders. The proposed criteria ensure that only the most underutilized markets are targeted for delisting, with clear thresholds that reflect inadequate activity and liquidity.

Specification
Based on the criteria mentioned above, we propose to delist the following markets from dYdX:
● AURORA
● BCUT
● BODEN
● GHST
● GME
● HAWKTUAH
● LUCE
● MAD
● MOTHER
● POWSCHE
● REN
● RETARDIO
● TREMP
● ZBCN
● ZERO

Each of these markets fails to meet the criteria outlined above.

Next Steps
We welcome community feedback regarding the proposed criteria and delisting list. If there is no strong dissent from the community, we plan to submit an on-chain parameter change proposal on January 7, 2025.

5 Likes
2

Thanks for the proposal, am for it and it’s a good idea considering these markets aren’t traded. More of a thought rather than criticism (that doesn’t specifically relate to this proposal) is that the selling point, or at least what DYDX hopes to become, is a place where everything can be traded ‘Trade Anything’ and Antonio has mentioned on several occasions that by the end of 2024 we would have 500 markets listed. Or maybe he meant 500 markets that ‘can be listed.’ Either way, we currently have 188 markets listed, and apparently by delisting these 15 markets we can ‘allocate more resources’ to high-demand markets. Which I guess means that by delisting these 15 markets, we can at least to some degree improve the performance of the DYDX chain.

So logically, how exactly are we supposed to scale and ‘Trade Anything’ if we’re already trying to improve the chain’s performance by delisting markets? I mean, the grand vision is to have thousands of markets listed on DYDX, at least that’s what comes to mind when reading ‘Trade Anything’. How can we achieve that if we’re already nitpicking on delisting 15 markets to improve performance?

3 Likes
3

Thank you for submitting this proposal. At Govmos, we have consistently advocated against listing low-value assets, especially during the period when governance approval was required for asset inclusion. Since the introduction of permissionless deployment, it has become increasingly clear that ongoing monitoring and periodic removal of underperforming assets are essential to maintaining platform efficiency.

This proposal aligns perfectly with this necessity, and we strongly support it. We also recommend that similar asset reviews and clean-up operations be conducted on at least a quarterly basis to ensure optimal performance.

Thank you for your efforts,
The Govmos Team
pro-delegators-sign

1 Like
4

Very valid proposal, appreciate the thought.
I would suggest that you also consider the following parameters:

  1. Life of the market, give it at least 12-15 weeks to organically build after setup to avoid delisting of new projects before giving them a fair chance to build.

  2. Ability of the exchange to build awareness about new listings. We should explore ways to promote new markets beyond the short "new listings’ feature on the exchange. Can e use our growth/marketing contributor support?

  3. Although listings are decentralised, if there is a way to partner with project communities and cross promote it will be a win-win. Long shot!

(We also need to remember that dydx is no longer the goto dex for may high volume projects who still qualify in the launchable categroy- but not signing up. alienating interested projects should be done with a macro understanding of second order effects as well.)

1 Like
5

Hi Nascor,

Thank you for your thoughtful comment and support of the proposal. You’ve raised an important point about the vision of dYdX as a platform where users can “Trade Anything” and the roadmap toward potentially listing thousands of markets.

The primary rationale for delisting these specific markets is to ensure that the protocol remains efficient and scalable as we grow. The key challenge isn’t about the number of markets but about ensuring that the infrastructure can support them without compromising performance.

Low-activity markets create unnecessary strain on the chain by requiring validators to fetch prices and fill block space with vault orders, all without delivering meaningful trading activity. Since crypto markets are cyclical, delisting tokens that have become irrelevant or inactive is a practical way to keep the platform optimized and ready for users to list new, high-demand tokens at any time.

2 Likes
6

As a follow-up to this proposal, we intend to submit a governance proposal to delist the CIG-USD market on dYdX, as it does not meet the activity and liquidity criteria outlined above.
Given the community’s support for the original proposal, we anticipate launching the on-chain proposal in the near future.

1 Like