Simple Summary
This proposal seeks to adjust the block rate limits on dYdX to better accommodate traders, aiming to enhance trading efficiency while managing protocol storage constraints.
Abstract
The equity tier/net collateral limit determines the number of open orders a sub-account can hold simultaneously on the dYdX Chain. Currently, the limits are particularly restrictive for traders within lower equity tiers ($20–$10,000). A proposal was created a year ago to adjust the limits for traders with equity tiers between $20-$100, which is still deemed too restrictive.
Under the current framework:
Stateful Order
| Net Collateral (USD) | Max Open Orders |
|---|---|
| $20 – $100 | 4 |
| $100 – $1,000 | 8 |
| $1,000 – $10,000 | 10 |
| $10,000 – $100,000 | 100 |
| Above $100,000 | 200 |
Short-term Order
| Net Collateral (USD) | Max Open Orders |
|---|---|
| $20 – $100 | 4 |
| $100 – $1,000 | 8 |
| $1,000 – $10,000 | 10 |
| $10,000 – $100,000 | 100 |
| Above $100,000 | 1,000 |
These conservative limits aim to protect protocol storage and maintain system performance, but have also caused significant friction in the trading experience. Therefore, we propose to adjust the limits of equity tiers between $20–$10,000 for both stateful and short-term orders.
Motivation & Rationale
The current constraints discourage traders from moving liquidity to dYdX and reduce the depth and quality of the order book. Many other exchanges offer more accommodating rate limits, making dYdX less competitive as a trading venue.
At the same time, we recognize that stateful orders consume on-chain storage, and a significant increase without careful management could jeopardize protocol reliability. This proposal balances the need to improve the trading experience with the need to protect the system’s performance.
Specification
We propose to adjust the equity tiers as follows:
Stateful Orders
| Net Collateral (USD) | Previous Limit | New Limit | Change |
|---|---|---|---|
| $20 – $100 | 4 | 10 | Increased |
| $100 – $1,000 | 8 | 20 | Increased |
| $1,000 – $10,000 | 10 | 40 | Increased |
| $10,000 – $50,000 | 100 | 100 | Unchanged |
| Above $50,000 | 200 | 200 | Net Collateral Threshold lowered from $100K |
Short-Term Orders
| Net Collateral (USD) | Previous Limit | New Limit | Change |
|---|---|---|---|
| $20 – $100 | 4 | 10 | Increased |
| $100 – $1,000 | 8 | 20 | Increased |
| $1,000 – $10,000 | 10 | 50 | Increased |
| $10,000 – $100,000 | 100 | 200 | Increased |
| Above $100,000 | 1,000 | 1,000 | Unchanged |
Next Steps
We invite the community to provide feedback on this post. If there’s no significant objection, we will submit the on-chain proposal on Thursday, May 8, 2025.