karpatkey is pleased to present the dYdX Treasury SubDAO’s February Community Update to the broader dYdX Community. This report encapsulates the dYdX Treasury SubDAO’s activities in February, and is complemented by karpatkey’s dYdX February Treasury Report.
DYDX Buyback Program
- The Treasury SubDAO submitted proposal #225, proposing a DYDX Buyback Program. The Program will allocate 25% of dYdX’s net protocol revenue to repurchase DYDX tokens.
- The Treasury SubDAO will manage a dedicated Buyback Account, acquiring DYDX via centralized or decentralized exchanges using a Time-Weighted Average Price (TWAP) strategy. Purchased tokens will be staked with dYdX Chain validators under the Treasury SubDAO’s staking program.
- The program aims to align token holders with dYdX’s growth while strengthening network security.
- Future governance may be passed to increase the buyback program, or to introduce additional features to further align token holders alignment.
Staking Program Updates
- Following the first periodic review and re-delegation of the Staking Program, the Treasury SubDAO has worked on refining the delegation calculation methodology to make it more equitable to active network participants.
- In February, Skycatcher departed from the dYdX active validator set and concomitantly withdrew their delegation. The dYdX Treasury SubDAO has since initiated unbonding from Skycatcher; once unbonded, the amount will be re-delegated.
Delegations can be viewed at the Treasury SubDAO’s address, and the latest changes are summarised in the table below.
| Name | Delegation |
|---|---|
| Skycatcher | -1,562,139.19 |
- Asset allocation: the Treasury SubDAO reached a total value of $48.58M in assets at the end of February 2025, comprising ~45M DYDX tokens and 1.43M USDC tokens.
- DeFi Results: 106.9k USDC generated by the Staking Program, and 158.4k USDC received from the protocol revenue share mechanism.
- Marked-to-market (“MTM”): Treasury SubDAO assets suffered from a decrease in market value of $16.9M in MTM, due to a decrease in the DYDX token price from $1.08 to ~$0.70 as of February 2025.
Token Allocation %
USDC Deployment into MegaVault
- Following a comprehensive due diligence and risk assessment, the Treasury SubDAO has successfully deployed 300K USDC into the dYdX Megavault on February 13, 2025.
- The deployment serves dual purpose of 1/ generating additional yield for the Treasury, 2/ add ecosystem benefits by deepening DYDX Exchange liquidity.
- The 300K USDC deposited into the Megavault have a current value of 300,507 USDC. The yield over the past 90 days has been approximately 4%.
Other Updates
- Recall of Stride Liquid Staking Program: following the approval of proposals 211 and 217, the Stride Recall was confirmed and is now being executed. This recalled 20M DYDX tokens from Stride and moved them under the management of the dYdX Treasury SubDAO, which will employ them for the staking program. We expect this additional amount to be available for delegation by the first week of April.
Next Steps for March
- dYdX Treasury SubDAO Staking Program: delegation adjustments for DYDX tokens previously delegated to Skycatcher
- Buyback Program: Treasury SubDAO Binance account creation, buyback algorithm development
- USDC Deployment: Continuous assessment and evaluation of alternative DeFi strategies to diversify from the MegaVault and improve the range of yield source