ETH Collateral in dYdX

Thank you very much for your comments. I am pleased to further develop each of the proposals we have been working on at Dragon Stake, which we have not seen included in the project’s Roadmap. We understand that the development team is currently focused on launching unlimited, which I believe is indeed a significant step forward for the project. (dYdX Unlimited: Coming This Fall)

We have made several proposals regarding this, which are as follows:

  1. ETH as Collateral, which I believe should be a key step towards enabling multiple collateral types. This upgrade is critical to provide liquidity to markets with lower liquidity and would enable the development of an investment product similar to what Ethena offers.
  2. A Copy Trading Program (Trading Competitions vs. Funding Talented Traders - #4 by cryptoplaza), which we believe would create much more long-term value for the protocol than the current competition we were conducting.
  3. Changing the Market Making Strategy to shift it from a cost for the project to a revenue-generating activity (Market Making: Turning Costs into Revenue).
  4. Replacing USDC with a stablecoin like USDS, where the protocol could receive income derived from the agreements that are being offered.

We believe that all these changes would likely have a significant impact on value creation, and we think it would be interesting to assess, when prioritizing new developments, the expected impact of each of these proposals. This would allow for evaluating the opportunity cost that these decisions might entail.

We have some additional ideas, but we believe these are the ones that make the most sense for the project in this regard