Summary
KPK presents the dYdX Treasury SubDAO’s August Community Update, covering market developments, DYDX metrics and programme execution.
The accompanying KPK August Treasury Report provides the detailed treasury balances, allocations and strategy results for the month.
Market Update
August brought a recovery in major digital assets, supported by renewed ETF inflows. ETH outperformed BTC, while participation across the wider altcoin market remained uneven. DYDX moved against that recovery and ended the month lower.
Market Performance
BTC increased from approximately $62,780 on 1 August to $78,558 on 31 August, a 25.1% gain between the first and last daily observations. ETH outperformed, rising from approximately $1,846 to $2,468 and recording a 33.7% increase over the same period. VanEck associated the rally with a weaker dollar and lower long-term yields, alongside the Treasury’s debt-buyback announcement.
Institutional Flows
Institutional demand strengthened during August. US spot BTC ETFs attracted approximately $3.54B in net inflows, while US spot ETH ETFs received approximately $1.84B, based on the sum of Farside Investors’ daily data. These flows provided a supportive backdrop to the recovery in both assets.
Market Structure & Dominance
The recovery extended beyond BTC, but did not amount to a broad altcoin rotation. CryptoRank’s August market recap reported a 26.5% rise in top-100 altcoin capitalisation against a 24.5% BTC gain, while the median altcoin gained 17%. Its Altseason Index remained below 40 and BTC dominance stayed elevated, pointing to uneven participation beneath the headline rally.
DYDX Token Update
DYDX underperformed major crypto assets in August. The token declined from approximately $0.11375 on 1 August to $0.10707 on 31 August, recording a 5.9% decrease between the first and last daily observations. Over the same period, BTC gained 25.1%, ETH gained 33.7%, and HYPE gained 62.1%. DYDX’s daily series recorded a low of approximately $0.09853 on 16 August and a high of $0.12405 on 23 August.
Mintscan dYdX analytics shows that total platform volume on the dYdX perpetual venue was approximately $1.18B across 491,357 trades. Activity was led by ETH-USD, which generated approximately $729.6M in notional volume across 116,714 trades, accounting for 61.9% of total platform volume. BTC-USD ranked second with approximately $324.4M across 108,496 trades, representing 27.5% of activity, while SOL-USD was third at approximately $102.3M across 32,907 trades, equivalent to 8.7% of platform volume.
Outside the top three pairs, activity was fragmented. XRP-USD generated approximately $4.1M, ZEC-USD recorded approximately $1.4M, MOVE-USD recorded approximately $1.2M, and BNB-USD recorded approximately $1.1M. The DYDX-USD market itself remained comparatively small, with approximately $82.6k in notional volume across 603 trades during the month.
Buyback Programme
Open-market activity acquired 1,152,868 DYDX at an average price of $0.11104, executed across 4,208 orders, for a total executed notional of 128,016.09 USDT. Execution recorded favourable slippage of approximately $353.32, alongside $128.02 in exchange fees, indicating better aggregate execution than the recorded benchmark. Executed-notional-weighted participation stood at 4.872%.
No OTC transactions were executed during August; all recorded DYDX purchases were made through the open market.
No stable-swap activity was recorded during the month.
Staking Programme
The Treasury SubDAO held approximately 90.04M DYDX staked at month-end across the Staking address, Buyback address and Osmosis LP address. The staking strategy generated $6,622 in August yield.
No new staking reallocations were implemented in August. The programme continued with the allocation established following the July staking review.
Asset Allocation
As of 31 August 2026, the Treasury SubDAO’s total funds stood at approximately $15.50M. The portfolio consists of:
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$9.66M in DYDX (62.32%).
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$3.51M in RWA (22.64%).
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$2.33M in stablecoins (15.04%).
Capital utilisation stood at 94.97%, with $14.73M allocated across DeFi positions and $0.78M held in wallet balances as a budget for the buyback program. The RWA sleeve consists of the $3.51M Ondo USDY position on Ethereum. By chain, approximately $10.49M was held on Cosmos dYdX (67.63%) and $5.02M on Ethereum (32.37%).
Yield Generation
| Strategy | Month-end allocation | August yield | APY / annualised yield |
|---|---|---|---|
| dYdX Staking Programme | $9,706,639 | $6,622 | 0.80% annualised yield |
| Ondo USDY | $3,510,669 | $10,052 | 3.55% |
| kpk USDC Prime Core V2 (Morpho) | $1,507,728 | $4,469 | 4.23% |
| Total | $14,725,036 | $21,143 | - |
DeFi strategies generated $21,143 during August. The Treasury SubDAO deployed an additional $1M into kpk USDC Prime Core V2 on Morpho, bringing the position to approximately $1.51M at month-end. The strategy generated $4,469 during the month, with a trailing-24-hour net APY of 4.23% at the last available observation on 31 August.
The Ondo USDY position generated $10,052 and continued to provide Treasury-backed yield alongside staking and stablecoin lending, supporting the diversification mandate approved in Proposal #372. Its month-end APY was 3.55%.
Other Updates
The Treasury SubDAO finalised onboarding of the newly elected Class A Director during August, completing the director transition approved by the community through Proposal #391.
Next Steps for September
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Buyback programme: continue DYDX purchases across approved execution channels, subject to mandate and market conditions.
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Staking programme: continue monitoring validator performance, with reallocations implemented as needed.
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Yield diversification: monitor the USDY RWA sleeve and Morpho deployment, including yield, liquidity and risk exposure.