kpk is pleased to present the dYdX Treasury SubDAO’s August Community Update, highlighting key developments and initiatives from the past month, a brief market analysis, DYDX token metrics and a few staking adjustments. This is accompanied by kpk’s August Treasury Report, including detailed treasury performance and strategy review.
Market Update
The digital asset market closed August on a strong note, with both BTC and ETH reaching new all-time highs (ATHs).
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BTC (-4.5% for the month) reached a new ATH of $124.12k mid-August, before retracing to close the month at $108.41k. ETH (+19% for the month) outperformed the broader market, peaking past $4.95k before closing the month at $4.38k.
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Institutional inflows slowed down to $4.37B, driven by growing adoption of ETH-based products ($3.96B), but partially offset by outflow from BTC-products (~$301M).
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Bitcoin dominance declined further (from 61% to 58%), driven by strong ETH outperformance. Some exchange-related tokens also made strong gains (OKB +262%, CRO +113%, MNT +67%, KCS +38%). OKB was up sharply after OKX announced the token supply will be cut in half. CRO was up on news of a new digital asset treasury company that will hold CRO, established in partnership with the Trump family. Other strong performers were LINK +48%, POL +43%, PUMP +36% and ARB +36%.
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The rest of the Top 20 digital assets by market cap showed mixed returns, with most underperforming ETH (XRP -5%, SOL +23%, BNB +13%, HYPE +3%).
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The worst performers for the month were BONK -17%, PENGU -16% and surprisingly SKY -16% as it failed to capitalize on the wider stablecoin narrative in August.
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The total implied network value (market cap) of the digital asset market stood at $3.84tn at the end of August and was largely flat for the month.
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Crypto funding rates fluctuated significantly during August without reaching extreme levels:
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Off-chain Funding Rates: Both BTC and ETH funding rates stayed between 5% to 12% on Binance despite choppy price action. Open interest for Binance BTC and ETH was almost flat (BTC Perps: 130k to 131k (BTC), ETH Perps: 2.56M to 2.64M (ETH))
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On-chain Funding Rates: On Hyperliquid, the rate fluctuations were much more pronounced; ETH funding moved between -6% and 38%, while BTC funding was between 5% and 38%. Interestingly, open interest for ETH and BTC was almost equal at $3.70B towards the end of the month.
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Several notable developments in the crypto space during August were:
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Digital asset treasuries continued gaining traction, driving ETH demand.
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Tom Lee’s BitMine Immersion Tech (BMNR), which is targeting to hold 5% of total ETH supply, bought almost 1.30M ETH in August, and finished the month with a total of 1.80M ETH in their treasury.
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Sharplink (SBET) also continued to stack their ETH treasury, growing from 361K to 798K ETH.
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Other companies like The Ether Machine (DYNX) and ETHZilla Corporation (ETHZ) also followed suit. The total ETH held by public companies is now a staggering amount of 3.5M ETH or about 3% of the total token supply.
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In a landmark shift, the Commodities Futures Trading Commission announced that spot crypto asset contracts can now be traded on futures exchanges under its jurisdiction—ushering in enhanced federal-level clarity and collaboration with the SEC under “Project Crypto.”
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BlackRock crossed $100 billion in crypto holdings. As of August 14, BlackRock has accumulated approximately $104.00B in crypto assets, with Bitcoin comprising the lion’s share—underscoring a massive institutional commitment to digital assets.
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Crypto enters U.S. retirement plans as a Trump administration executive order now permits 401(k) and other retirement plans to invest in cryptocurrency investment vehicles, private equity as well as other alternative investments, potentially opening trillions in new capital flows while raising concerns about risk for ordinary savers.
Many digital asset treasury companies are now trading below a multiple of net asset value (mNAV) of 1, meaning the market values these companies below their net asset value. This suggests that the frenzy of DAT may begin to slowly fizzle out.
DYDX Token Update
Trading volumes on the DYDX platform reflected robust market participation, led by ETH-USD and BTC-USD pairs, which accounted for 58% and ~24% of total 30-day volume respectively. ETH alone saw $4.37B in notional volume across nearly half a million trades, followed by BTC at $1.78B and SOL at $503.71M.
Overall, the platform sustained high activity levels across majors and mid-cap assets.
DYDX Buyback Program – August Update
August marked the fourth full month of execution for the Buyback Program since its inception on April 23rd. During the month, a portion of the USDC held in the buyback account was transferred to the Treasury SubDAO’s Binance account and swapped for USDT, enabling more efficient use of capital for subsequent purchases. Following this, the program executed two types of buybacks: open-market DYDX purchases via Binance and an OTC transaction.
CEX purchases resulted in the acquisition of 191,967 DYDX at an average price of $0.63527, with tokens periodically withdrawn to the Treasury SubDAO’s buyback account.
OTC purchases from the dYdX Operations SubDAO resulted in the acquisition of 900,000 DYDX at an average price of $0.66492. The trade was executed directly on the dYdX Chain, ensuring full on-chain transparency and minimising slippage and market impact.
All buyback-related activity remains fully transparent and can be monitored through the community-built Buyback Dashboard.
A detailed breakdown of August execution performance and key insights is provided below:
Staking Program — Periodic delegation review
No changes were made to the Staking Program delegation in August.
Ops Subdao undelegation rebalancing
The Treasury SubDAO has successfully undelegated 1M DYDX from the Operations SubDAO vault, and redelegated 900k DYDX from the Buyback Vault to offset the unstake. The released 100k DYDX will form a liquid position to cover anticipated monthly operational needs andwhile supporting initiatives to broaden DYDX accessibility, particularly for institutional adoption and alternative distribution networks.
Asset Allocation
As of August 31, the Treasury SubDAO reached a total value of $52.33M in assets comprising:
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Asset Allocation: 84.93M DYDX tokens (97.3%) and 1.42M USDC tokens (2.7%).
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Yield Generation:
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Staking Results: 183k USDC generated by the Staking Program.
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Megavault Results: 6k USDC; since the deployment of $300k USDC to Megavault on February 13th, Megavault has generated $23k (~13.6% annualised return).
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Marked-to-market (“MTM”): the Treasury SubDAO assets benefited from a monthly MTM gain of $3.07M due to an increase in the DYDX token price (+6.57%).
Token Allocation %
Next Steps for September
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Buyback Program: Continue DYDX buybacks via both CEX and OTC channels
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Launching solutions to broaden DYDX access, focusing on institutional adoption and integration into alternative distribution networks.
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Providing on-chain DYDX spot liquidity