[DRC] Proposal for dYdX Protocol Upgrade to v9.4

dYdX Chain
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v9.4
v9.41920×960 52.5 KB

TL;DR: (summary)

We would like to submit for consideration a software upgrade proposal for the dYdX Protocol v9.4. This version introduces leverage enforcement, staking-based fee tiers, and refined affiliate rewards, improving trading safety, incentive alignment, and protocol consistency.

Introduction:

Hello dYdX Community,

We’re bringing to your attention the dYdX Protocol release v9.4, which introduces enhancements aimed at improving the trading experience and incentive mechanisms across the dYdX Chain. If accepted, this upgrade would enable protocol-level enforcement of leverage limits to ensure consistent margin checks on order placement, updates, and withdrawals. It would also make fees more dynamic through new staking tiers, market-based fee discounts, and integrated commission overrides, aligning rewards more closely with user participation. The affiliate program would be refined to prevent abuse by removing the whitelist and setting clearer eligibility rules tied to trading activity.
Note: the adoption of v9.4 is subject to software upgrade via a governance proposal.

Specification:

Detailed information on v9.4 can be found in the release notes.
Key updates include:

  • Leverage enforcement: The Protocol checks leverage on order placement, updates, and withdrawals, improving risk control and preventing unsafe positions.

  • Staking-based fee tiers: Traders can benefit from reduced fees depending on their staked amount, introducing new staking-tier logic into fee calculations.

  • Market fee discounts: Adds per-market fee discounting to reward trading activity in specific markets.

  • Affiliate program refinements: Deprecates the Affiliate Whitelist, adds a 30-day trading-volume cap for new referral revenue, and improves fairness in affiliate rewards.

  • Commission and override integration: Referrer and tier commissions are seamlessly reflected in the user’s effective fee rates.

  • Improved data consistency: Fixes to staking metrics and TWAP store logic ensure more accurate protocol and analytics behavior.

Next Steps:

Feedback is welcome on this DRC. The dYdX Operations subDAO suggests the following timeline for proceeding with the governance proposal:

  • Proposal Submission: Nov 1, 2025
  • Vote Outcome: Nov 5, 2025
  • Upgrade Date: Nov 6, 2025
  • Suggested Block Height: 62250000

Note: We advise that the potential proposer revise the suggested block height at the time of proposing and pick an upgrade height close to 5:00 PM (UTC) on November 6, 2025 - especially in case the ETA of 62250000 has shifted dramatically.

Resources:

NOTE: Please make sure to include the required info-fields in the proposal.

Also, please note that the protocol software has dropped patch number from upgrade name, therefore mandating the use of v9.4 in the proposal JSON.

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Thank you for your continued participation and support in the governance and improvement of the dYdX Chain.

dYdX Operations SubDAO

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