[DRC] Upgrade 2Z-USD and ZEC-USD markets

Proposals
1

Simple Summary

This proposal seeks to upgrade the liquidity tier of 2Z-USD and ZEC-USD markets from Isolated to Long-Tail and enable Cross Margin trading on dYdX. The proposed changes aim to improve trading flexibility while ensuring minimal liquidation risk.

Abstract

Based on the criteria set out in the dYdX governance documentation, we propose to upgrade the liquidity tier of and enable cross margin on the 2Z-USD and ZEC-USD markets.

The criteria fulfilled are as follows:

  • At least two oracle sources with > $1M USD in trading volume each.

  • At least two oracle sources with > $150K depth within 2% of the mid-price.

  • A minimum of four total oracle sources.

Motivation and Rationale

Upgrading the above markets from Isolated to Long-Tail and enabling Cross Margin trading will allow traders to optimize capital efficiency while minimizing fragmentation across isolated positions.

Specification

We propose to execute this upgrade by submitting an on-chain proposal that contains the following messages:

  • Updating the liquidity tier of the markets above from Isolated to Long-Tail using MsgUpdatePerpetualParams.

  • Enabling Cross Margin trading by executing MsgUpgradeIsolatedPerpetualToCross.

Next Steps

If there aren’t any objections or concerns, we are planning to submit the mainnet proposal in the near future.

1 Like
2

Hi dYdX community,

We plan to submit a proposal to upgrade FARTCOIN-USD to Cross Margin trading.

This market similarly fulfills the liquidity and oracle criteria referenced above — including sufficient depth, multiple reliable price feeds, and trading activity.

Upgrading FARTCOIN-USD will:

  • Improve capital efficiency by allowing cross-margin usage across correlated positions.

  • Reduce fragmentation of liquidity currently trapped in isolated margin accounts.

  • Maintain risk parameters in line with other long-tail assets that meet the governance framework thresholds.

Once the voting-period-reduction proposal passes, we will proceed with submitting the on-chain market-upgrade proposal accordingly.

Thank you for your consideration and ongoing feedback!