Isolated Markets Feedback

dYdX Chain
1

Congrats on the isolated markets launch! I am loving how we’re making a statement by listing a very recently launched meme coin. The reception seems to have been great.

I’d like to submit some feedback as I’ve been testing this new isolated market. I have noticed that:

  • The low liquidity warnings are buggy/glitchy.
  • The UI allows me to submit orders which result in losing about 80% of my deposit due to low liquidity/high spread (these were test funds, so no big harm here).

I have recorded a video:

You will notice that:

  1. The user does not get initially warned that there is low liquidity.
  2. The low liquidity warning appeared only once, for a fraction of a second, towards the end of the video.
  3. For the example in the video, there is a 490.78% price impact (I have paused the video to take another screenshot which you can see below). Although there is such a high price impact, the order can still be submitted without any additional guardrails.

Screenshot_2

So, what happened here, if we were to assume that a new trader just onboarded and wanted to trade MOTHER:

  1. The user would have submitted an order (not aware that there is low liquidity due to the glitchy warning).
  2. The user would have been able to successfully submit the order, even though there is a 490% price impact.
  3. The user would have lost most of their deposited capital.

Other than fixing the low liquidity warning, I’d like to propose adding additional guardrails for submitting orders that have such high price impact. In what cases would a trader want to submit an order with a price impact of 500%? Why would the UI allow the user to submit such an order in the first place? I think at the very least we should have a window pop-up, confirming whether the user wants to indeed submit such an order, and possibly simulate their account/deposit balance before and after submitting the trade.

I think adding additional guardrails for such cases will save us a lot of complaints in the future.

I know there is a feedback page for such things, but I consider this urgent and wanted to provide more details.

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2

hey thanks for the feedback. I agree this warning flashing is not working as intended. We will address this.

Can you clarify, did you actually submit an order that faced very high slippage? Or did you just see a warning that you would.

Our internal dashboards indicate the spread has been less than 1% since the market went live, and that you can trade up to $12k within 60bps of mid.

1 Like
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have dmed you with the details

4

For anyone else following the thread:

This wasn’t a liquidity issue, but a different subtle issue related to transfers and the user being logged in with 2 accounts at once. Collateral was transferred from one of the users addresses to a different address also used by the user.

We diagnosed the issue and added additional controls to prevent it in the future and will issue @Nascor a bug bounty.

3 Likes