DRC Upgrade Markets from Isolated to Cross

Proposals
1

Introduction to RavenDAO

Raven is a proprietary high-frequency algorithmic trading firm specializing in CeFi market making and DeFi liquidity provision.

Simple Summary

This proposal seeks to upgrade the liquidity tier of certain 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

dYdX Chain v8.0.1 upgrade allows the dYdX community to upgrade markets from Isolated to Cross margin via governance. The dYdX governance documentation suggests the following criteria to determine compatibility of an isolated market with cross-margining:

  • 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.
  • Availability of at least 30 days of historical data.

Based on the criteria above, we propose to upgrade the liquidity tier of and enable cross margin on the following markets:

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:

  1. Updating the liquidity tier of the markets above from Isolated to Long-Tail using MsgUpdatePerpetualParams.
  2. 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 on March 7, 2025.

2

The more markets in cross, the better. :slight_smile: