Summary
KPK is pleased to present the dYdX Treasury SubDAO’s July Community Update, which outlines recent developments, DYDX metrics, and programme execution.
This update is accompanied by KPK’s July Treasury Report, which provides a detailed review of treasury performance and strategy.
Market Update
July 2026 was a fragile recovery month for digital asset markets. BTC and ETH recovered from June’s drawdown, but the rebound remained uneven as renewed US-Iran tensions, higher oil prices and a higher-for-longer rates backdrop continued to constrain risk appetite. Ether outperformed materially, while the broader altcoin market remained under pressure.
Market Performance
BTC opened July at approximately $60,415 and closed at approximately $62,905, up 4.1% month on month. It reached a monthly high near $66,264 on 21 July before easing into month-end. ETH outperformed, moving from approximately $1,621 to $1,861, a 14.8% monthly gain, and reached a monthly high near $1,949 on 26 July. The divergence reflected a selective recovery concentrated in the two largest assets rather than broad-based risk-on positioning.
Institutional Flows
Institutional flows remained mixed. ETF demand began to recover early in the month: $265.7M of net inflows into US-listed spot bitcoin ETFs on 6 July after $221.7M on 2 July. The recovery remained uneven as markets continued to assess the Fed outlook and geopolitical risk.
Market Structure & Dominance
Market structure continued to favour majors. BTC recovered modestly despite intermittent geopolitical headlines, while ETH’s stronger performance reflected selective demand. Kiplinger’s July Fed coverage reported that rates were left unchanged while policymakers remained concerned about inflation and the energy shock. Together, these conditions indicated that the recovery had not developed into a broad rotation across the digital asset market.
DYDX Token Update
DYDX underperformed major crypto assets in July. The token opened the month at approximately $0.1486 and closed at approximately $0.1134, delivering a 23.7% monthly decline. Over the same period, BTC returned +4.1%, ETH returned +14.8%, and HYPE declined 17.1%. DYDX reached its monthly high on 1 July and traded down to an intra-month low of approximately $0.1096 on 30 July before closing the month slightly above that level.
Mintscan dYdX analytics shows that total platform volume on the dYdX perpetual venue was approximately $1.51B across 596,328 trades. Activity remained concentrated in BTC-USD, which generated approximately $903.6M in notional volume across 197,500 trades, accounting for 59.8% of total platform volume. ETH-USD ranked second with approximately $438.7M across 101,336 trades, representing 29.0% of activity, while SOL-USD was third at approximately $139.4M across 47,810 trades, equivalent to 9.2% of platform volume.
Outside the top three pairs, activity was fragmented. OP-USD generated approximately $4.6M, ETC-USD recorded approximately $3.1M, XRP-USD recorded approximately $2.8M, and DOGE-USD recorded approximately $2.5M. The DYDX-USD market itself remained comparatively small, with approximately $72.4k in notional volume across 667 trades during the month.
Buyback Programme
Open-market activity acquired 895,295 DYDX at an average price of $0.12468, executed across 5,358 orders, for a total outlay of 111,626 USDC. Execution recorded adverse slippage of approximately $524.28, alongside $111.63 in exchange fees, indicating that aggregate open-market execution was worse than the benchmark price used for slippage measurement.
No OTC transactions were executed during July, with all DYDX buyback activity conducted through open-market purchases.
No stable-swap activity was executed during July. Tokens purchased through the buyback programme were periodically transferred to the Treasury SubDAO buyback account and staked under the Treasury SubDAO’s Staking Programme.
Staking Programme
The Treasury SubDAO completed its sixth periodic staking review in July, with a targeted rebalance designed to reinforce the chain’s designated proposer set while preserving the existing validator composition. The review considered approximately 90.0M DYDX delegated in total, including approximately 69.2M DYDX from the Staking address, 20.0M DYDX from the Buyback address, and 0.9M DYDX from the Osmosis LP address.
The resulting redelegations moved approximately 3.41M DYDX away from Cosmostation and reallocated delegation across Kingnodes, Solva (CryptoCrew) X Defi Dojo, PRO Delegators, Crosnest, RHINO, Kiln, and TTT VN. All redelegations from the review have been fully executed.
Asset Allocation
As of 31 July 2026, the Treasury SubDAO’s total funds stood at approximately $16.04M. The portfolio currently consists of:
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$10.24M in DYDX (63.84%)
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$3.50M in RWA (21.82%)
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$2.30M in stablecoins (14.34%)
Capital utilisation stood at 89.04%, with $14.28M allocated across DeFi positions and $1.76M held in wallet balances. The RWA sleeve consists of the $3.50M Ondo USDY position on Ethereum. By chain, approximately $11.04M was held on Cosmos dYdX (68.80%) and $5.00M on Ethereum (31.20%), reflecting the RWA allocation and ongoing Ethereum-based DeFi exposure.
Yield Generation
| Strategy | Month-end allocation | July yield | APY |
|---|---|---|---|
| dYdX Staking Programme | $10,277,609 | $10,057 | 1.15% |
| Ondo USDY | $3,500,617 | $1,843 | 3.55% |
| kpk USDC Prime Core V2 (Morpho) | $503,918 | $1,447 | 3.69% |
| Total | $14,282,144 | $13,347 | - |
DeFi strategies generated $13,347 during July. The Treasury SubDAO deployed approximately $3.5M into Ondo USDY on Ethereum during the month, adding an RWA-backed, decorrelated yield source alongside staking and stablecoin lending. This deployment was made under the mandate approved in Proposal #372.
Other Updates
The Treasury SubDAO is progressing a change to one Class B Director to reflect changes in the community signers set, while maintaining operational continuity. The community approved this change through Mintscan Proposal #391.
Next Steps for August
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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 across the active set, with reallocations implemented only as needed.
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Yield allocations: monitor the USDY and Morpho positions, including their contribution to diversification and risk-adjusted yield.
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Director transition: complete onboarding of the new Class B Director and the associated operational signing responsibilities.