# DRC Upgrade Markets from Isolated to Cross

**URL:** <https://dydx.forum/t/drc-upgrade-markets-from-isolated-to-cross/3458>\
**Category:** Proposals\
**Tags:** drc\
**Created:** [March 5, 2025, 12:19pm UTC](https://dydx.forum/t/drc-upgrade-markets-from-isolated-to-cross/3458 "2025-03-05T12:19:29Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Carlossss](https://avatars.discourse-cdn.com/v4/letter/c/b9bd4f/32.png) [@Carlossss](https://dydx.forum/u/Carlossss)\
**Post date:** [March 5, 2025, 12:19pm UTC](https://dydx.forum/t/drc-upgrade-markets-from-isolated-to-cross/3458/1 "2025-03-05T12:19:29Z")

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**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](https://github.com/dydxprotocol/v4-chain/releases/tag/protocol/v8.0.1) upgrade allows the dYdX community to upgrade markets from Isolated to Cross margin via governance. The dYdX [governance documentation](https://docs.dydx.community/dydx-unlimited/modules/governance/governance-adjustable-parameters/markets%23market-types) 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:

- [**ATH-USD**](https://dydx.trade/trade/ATH-USD)
- [**BEAM-USD**](https://dydx.trade/trade/BEAM-USD)
- [**DRIFT-USD**](https://dydx.trade/trade/DRIFT-USD)
- [**EIGEN-USD**](https://dydx.trade/trade/EIGEN-USD)
- [**ENA-USD**](https://dydx.trade/trade/ENA-USD)
- [**MORPHO-USD**](https://dydx.trade/trade/MORPHO-USD)
- [**MOVE-USD**](https://dydx.trade/trade/MOVE-USD)
- [**ONDO-USD**](https://dydx.trade/trade/ONDO-USD)
- [**PENGU-USD**](https://dydx.trade/trade/PENGU-USD)
- [**PNUT-USD**](https://dydx.trade/trade/PNUT-USD)
- [**POL-USD**](https://dydx.trade/trade/POL-USD)
- [**S-USD**](https://dydx.trade/trade/S-USD)
- [**USUAL-USD**](https://dydx.trade/trade/USUAL-USD)
- [**XMR-USD**](https://dydx.trade/trade/XMR-USD)
- [**ZEN-USD**](https://dydx.trade/trade/ZEN-USD)

**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.

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**Author:** ![mjd](https://dub1.discourse-cdn.com/flex013/user_avatar/dydx.forum/mjd/32/2107_2.png) [@mjd](https://dydx.forum/u/mjd)\
**Post date:** [March 5, 2025, 3:46pm UTC](https://dydx.forum/t/drc-upgrade-markets-from-isolated-to-cross/3458/2 "2025-03-05T15:46:13Z")

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The more markets in cross, the better. 🙂