Summary
This proposal introduces another round of tick size reductions across 50 perpetual markets on the dYdX Chain.
The changes target markets where the current tick size exceeds 10 basis points (bps) of the oracle price, which can restrict efficient price movement and reduce market quality.
This round includes:
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35 cross-margin markets
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15 isolated markets
For most markets, the proposed change reduces the tick size by a factor of 10, improving price granularity and enabling tighter spreads.
The goal is to improve price discovery and trading efficiency across these markets.
Motivation
When tick sizes are too large relative to the market price, several issues arise:
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Prices can only move in large increments
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Market makers cannot quote competitively
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Bid/ask spreads remain artificially wide
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Order books become inefficient
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Traders experience poorer execution quality
In a number of the affected markets, the current tick size represents more than 10 bps of the underlying oracle price, which can restrict natural price movements.
Reducing tick sizes improves:
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Order book granularity
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Spread compression
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Market maker participation
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Overall market liquidity
Proposed Changes
This proposal reduces tick size across the following markets.
Cross-Margin Markets (35)
MOVE-USD
ORDI-USD
ONDO-USD
GRT-USD
STX-USD
JTO-USD
FLOKI-USD
LDO-USD
SNX-USD
TIA-USD
DYM-USD
STRK-USD
S-USD
RUNE-USD
PYTH-USD
POPCAT-USD
AXL-USD
ETHFI-USD
ENS-USD
ATH-USD
SEI-USD
PEOPLE-USD
2Z-USD
DRIFT-USD
ETC-USD
DYDX-USD
ALGO-USD
MANA-USD
AVAX-USD
1INCH-USD
FIL-USD
HBAR-USD
APT-USD
POL-USD
ARB-USD
Isolated Markets (15)
KAS-USD
LINEA-USD
AERO-USD
AKT-USD
USELESS-USD
BANANA-USD
IOTX-USD
MNRY-USD
RAY-USD
JASMY-USD
IOTA-USD
DEGEN-USD
KOMA-USD
IP-USD
FLR-USD
Parameter Adjustments
For the majority of these markets:
- Current tick size → New tick size = divide by 10
This reduces the percentage tick size relative to the oracle price to more appropriate levels and allows markets to move in smaller increments.
A detailed breakdown of oracle prices, current tick sizes, and new tick sizes is provided in the accompanying data table.
Expected Impact
The proposed adjustments are expected to:
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Improve price discovery
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Allow tighter bid/ask spreads
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Increase market maker competitiveness
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Improve execution quality for traders
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Enhance overall market health
No changes are made to risk parameters, margin requirements, or matching engine behavior.
Timeline
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Forum discussion: immediately
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Onchain proposal submission: Wednesday (11-March-2026)
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Goal: complete governance voting before the weekend
If anyone has feedback, concerns, or suggestions for improvement, please share them soon so we can incorporate any adjustments before the proposal goes onchain.