Summary
● On November 15, the dYdX community approved routing 50% of protocol fees to the MegaVault. To date, DEP has allocated $1,523,102.00 USDC to market-specific subvaults under the designated grant.
● This proposal seeks to optimize the performance of the dYdX Chain vaults by deploying additional available capital and adjusting the parameters of each subvault to align with the specific characteristics of their respective markets.
● This proposal is time-sensitive, as the rebalances rely on current equity levels in the MegaVault and its subvaults, which are subject to fluctuations over time. If the equity in any subvault drops below the levels required for the proposed rebalances, the entire proposal may be rendered ineffective.
● To ensure that these optimizations can be executed based on the current vault conditions, we intend to submit an expedited proposal for an on-chain vote as soon as possible.
Motivation/Rationale
The dYdX Unlimited upgrade introduced support for the MegaVault—a user-facing feature designed to allow dYdX Chain users to deposit USDC, provide liquidity to various markets, and earn yield.
Under this grant, DEP deposited $1,523,102.00 capital into market-specific subvaults to facilitate testing and bootstrapping. Currently, there is no Megavault Operator on dYdX Chain and as a result any changes to subvault parameters must be completed through a dYdX Chain governance proposal.
This proposal aims to change vault allocations, deploy more capital in the Megavault, and to set the spread and skew parameters for select vaults. We will monitor subvault performance and may need to submit another proposal early next week.
Specification
Vaults will be updated as follows:
| pair | half_spread_change | new_skew_change | transfer |
|---|---|---|---|
| ZRO-USD | 0.003 | -0.5 | -1712.6955 |
| PEPE-USD | 0.003 | -0.5 | 59300.6579 |
| TRY-USD | 0 | 0 | -37744.409 |
| MOTHER-USD | 0 | 0 | -30419.845 |
| TREMP-USD | 0 | 0 | -17859.453 |
| SNX-USD | 0 | 0 | -11499.202 |
| 1INCH-USD | 0 | 0 | -7615.7577 |
| POPCAT-USD | 0 | 0 | -7128.1809 |
| AR-USD | 0 | 0 | -5425.5725 |
| BTC-USD | 0 | 0 | -4318.6276 |
| ENS-USD | 0 | 0 | -4249.3934 |
| MEW-USD | 0 | 0 | -4062.2563 |
| ENJ-USD | 0 | 0 | -4048.0045 |
| FOXY-USD | 0 | 0 | -3813.1186 |
| ETH-USD | 0 | 0 | -3717.7995 |
| TAIKO-USD | 0 | 0 | -3516.1647 |
| MNT-USD | 0 | 0 | -3491.8718 |
| DMAIL-USD | 0 | 0 | -3420.9654 |
| AXS-USD | 0 | 0 | -3383.4451 |
| OM-USD | 0 | 0 | -3213.5244 |
| RETARDIO-USD | 0 | 0 | -3209.8745 |
| BICO-USD | 0 | 0 | -3197.506 |
| STRK-USD | 0 | 0 | -3170.3524 |
| PIXEL-USD | 0 | 0 | -3159.745 |
| CVX-USD | 0 | 0 | -3152.8664 |
| EIGEN-USD | 0 | 0 | -3113.9792 |
| ZEN-USD | 0 | 0 | -3094.4346 |
| TRX-USD | 0 | 0 | -3077.8731 |
| DAI-USD | 0 | 0 | -3075.1496 |
| STX-USD | 0 | 0 | -3047.4369 |
| ZERO-USD | 0 | 0 | -3042.428 |
| IMX-USD | 0 | 0 | -3019.4934 |
| CORE-USD | 0 | 0 | -2983.5475 |
| GME-USD | 0 | 0 | -2959.6702 |
| XAI-USD | 0 | 0 | -2929.6294 |
| EGLD-USD | 0 | 0 | -2929.2814 |
| NEO-USD | 0 | 0 | -2889.5652 |
| UMA-USD | 0 | 0 | -2825.1443 |
| OSMO-USD | 0 | 0 | -2816.0179 |
| ZK-USD | 0 | 0 | -2805.2489 |
| ALT-USD | 0 | 0 | -2766.9346 |
| EURC-USD | 0 | 0 | -2754.1352 |
| BLAST-USD | 0 | 0 | -2598.2574 |
| JTO-USD | 0 | 0 | -2328.7913 |
| ORDI-USD | 0 | 0 | -2246.9287 |
| TLOS-USD | 0 | 0 | -2095.675 |
| ARKM-USD | 0 | 0 | -2026.0659 |
| FLOKI-USD | 0 | 0 | -1932.9976 |
| TON-USD | 0 | 0 | -1892.8431 |
| DRIFT-USD | 0 | 0 | -1848.0492 |
| WOO-USD | 0 | 0 | -1693.3708 |
| VRTX-USD | 0 | 0 | -1592.3248 |
| AURORA-USD | 0 | 0 | -1568.018 |
| NOT-USD | 0 | 0 | -1531.5645 |
| BLUR-USD | 0 | 0 | -1426.442 |
| XTZ-USD | 0 | 0 | -1357.0859 |
| GMX-USD | 0 | 0 | -1264.7339 |
| PENDLE-USD | 0 | 0 | -1246.35 |
| BODEN-USD | 0 | 0 | -1115.8995 |
| AKT-USD | 0 | 0 | -1100.7746 |
| ASTR-USD | 0 | 0 | -1059.2707 |
| PYTH-USD | 0 | 0 | -927.07487 |
| JUP-USD | 0 | 0 | -861.93808 |
| SAFE-USD | 0 | 0 | -831.88219 |
| NEIRO-USD | 0 | 0 | -702.69554 |
| PEOPLE-USD | 0 | 0 | -676.62458 |
| W-USD | 0 | 0 | 122.776982 |
| MOG-USD | 0 | 0 | 144.596679 |
| ETHFI-USD | 0 | 0 | 204.439898 |
| AEVO-USD | 0 | 0 | 1168.66967 |
| DEGEN-USD | 0 | 0 | 2155.12689 |
| ALGO-USD | 0 | 0 | 2400.4241 |
| AXL-USD | 0 | 0 | 2874.69518 |
| APT-USD | 0 | 0 | 3269.66995 |
| TAO-USD | 0 | 0 | 5578.88438 |
| GRT-USD | 0 | 0 | 5890.86254 |
| ENA-USD | 0 | 0 | 12460.4506 |
| MANA-USD | 0 | 0 | 12966.1111 |
| SEI-USD | 0 | 0 | 24889.2711 |
| BONK-USD | 0 | 0 | 26798.0821 |
| CHZ-USD | 0 | 0 | 31909.3226 |
| FTM-USD | 0 | 0 | 40540.922 |
| RENDER-USD | 0 | 0 | 49047.8444 |
| TIA-USD | 0 | 0 | 66593.5309 |
| SHIB-USD | 0 | 0 | 68024.8359 |
| RUNE-USD | 0 | 0 | 70712.8391 |
| UNI-USD | 0 | 0 | 71444.4519 |
| SUI-USD | 0 | 0 | 72149.6941 |
| WLD-USD | 0 | 0 | 72711.2228 |
| DOGE-USD | 0 | 0 | 76170.3365 |
| MICHI-USD | -0.003 | 0.5 | -22275.533 |
| XMR-USD | -0.0015 | 0.5 | 0 |
| DYM-USD | 0 | 0.5 | -334.73457 |
| WIF-USD | 0 | 0.5 | 11424.4598 |
| HBAR-USD | 0 | 0.5 | 20511.9724 |
Next Steps
We intend to submit an expedited proposal for an on-chain vote as soon as possible.
