Chaos Labs is creating this thread to discuss potential incentive design ahead of the launch of dYdX Unlimited. The purpose is to dedicate a single open brainstorming venue for incentive discussions, that any community members can use as a reference. Through respectful, positive debate we all can contribute towards the continued growth of the dYdX Chain as a market leader in perpetual futures trading.
We look forward to more of the interesting and diverse ideas this passionate community is known for and we will consider them all, should the dYdX Unlimited re-launch proposal pass.
Please limit ideas to those strictly related to distributing incentives to users of the protocol. Elements such as the user interface, community initiatives, affiliate programs, etc. are out of scope and require their own dedicated discussion threads.
To start a fairly simple idea; stimulate as much people to enter the MegaVault, since it effectively kills the need for Market Makers of the Long Tail Assets. Those funds can better be used to get people to participate in the MegaVault and achieve an economy of scale.
After the end of Season 6, we saw a significant decrease in trading volume, which certainly cannot be explained by a decrease in market volatility. Some accounts have reduced their trading volumes by 70-80%. I understand that it has only been a few days since the end of the season and we don’t have enough data yet, but the overall trend is concerning.
The sql query I used might have a mistakes so I want to ask @chaoslabs Have you noticed such a decrease in volumes from top accounts and do you agree with my conclusion that these volumes were essentially sustained by rewards?
I definitely don’t think we should rush to turn the rewards back on just to maintain trading volume. It’s irrational in the long run to buy inorganic volume at the expense of the treasury.
I’ve decided to update the previous query so that the “last 3 days” period would be from August 27 to August 29, as the end of the season was announced on August 26 at 17:30 GMT. For clearer data analysis, it was better to exclude August 26.
In my opinion, the drop in volumes looks even worse. I can attribute a 10-20% decrease to certain volatility, although the average we are comparing against includes weekends when trading volumes are much lower, and our three-day period falls on a workweek.
I would like those who are interested to check the query I used to eliminate any possible errors.
The query
WITH RecentVolume AS (
SELECT
account,
trade_date,
SUM(volume_usdc) AS total_volume_usdc
FROM (
SELECT
taker AS account,
DATE(block_timestamp) AS trade_date,
ABS(taker_quote_balance_delta_quote_quantums) / 1000000 AS volume_usdc
FROM `numia-data.dydx_mainnet.dydx_match`
WHERE
block_timestamp BETWEEN TIMESTAMP('2024-07-27 00:00:00 UTC') AND TIMESTAMP('2024-08-25 23:59:59 UTC')
UNION ALL
SELECT
maker AS account,
DATE(block_timestamp) AS trade_date,
ABS(maker_quote_balance_delta_quote_quantums) / 1000000 AS volume_usdc
FROM `numia-data.dydx_mainnet.dydx_match`
WHERE
block_timestamp BETWEEN TIMESTAMP('2024-07-27 00:00:00 UTC') AND TIMESTAMP('2024-08-25 23:59:59 UTC')
)
GROUP BY account, trade_date
),
Top50Accounts AS (
SELECT
account,
SUM(total_volume_usdc) AS total_volume_30_days,
SUM(total_volume_usdc) / 30 AS avg_daily_volume_30_days
FROM RecentVolume
WHERE trade_date BETWEEN DATE('2024-07-27') AND DATE('2024-08-25')
GROUP BY account
ORDER BY total_volume_30_days DESC
LIMIT 50
),
Last3DaysVolume AS (
SELECT
account,
SUM(volume_usdc) AS total_volume_last_3_days,
SUM(volume_usdc) / 3 AS avg_volume_last_3_days
FROM (
SELECT
taker AS account,
ABS(taker_quote_balance_delta_quote_quantums) / 1000000 AS volume_usdc
FROM `numia-data.dydx_mainnet.dydx_match`
WHERE
block_timestamp BETWEEN TIMESTAMP('2024-08-27 00:00:00 UTC') AND TIMESTAMP('2024-08-29 23:59:59 UTC')
AND taker IN (SELECT account FROM Top50Accounts)
UNION ALL
SELECT
maker AS account,
ABS(maker_quote_balance_delta_quote_quantums) / 1000000 AS volume_usdc
FROM `numia-data.dydx_mainnet.dydx_match`
WHERE
block_timestamp BETWEEN TIMESTAMP('2024-08-27 00:00:00 UTC') AND TIMESTAMP('2024-08-29 23:59:59 UTC')
AND maker IN (SELECT account FROM Top50Accounts)
)
GROUP BY account
),
VolumeComparison AS (
SELECT
a.account,
a.avg_daily_volume_30_days,
b.avg_volume_last_3_days,
((b.avg_volume_last_3_days - a.avg_daily_volume_30_days) / a.avg_daily_volume_30_days) * 100 AS percent_change
FROM Top50Accounts a
JOIN Last3DaysVolume b ON a.account = b.account
)
SELECT
account,
avg_daily_volume_30_days,
avg_volume_last_3_days,
percent_change
FROM VolumeComparison
ORDER BY percent_change ASC;
Please, note, not everyone who stopped trading are scammers. We had over 5kk trading volume in season 5 and stopped for maintenance and upgrade… And you cut all the bonuses which were allocated to our developers ( this was sad.
I have never said those who farm the rewards are scammers. I am saying that that volume based only on rewards is not organic. But It’s an open market and it’s normal to exploit the opportunity
