Proposal to add a DYDXETH Gauge

Proposals
#1

Summary:

Proposal to add DYDX - ETH Factory Pool to the Gauge Controller to enable users to assign gauge weight and mint CRV.

DYDX Abstract:

We present a set of protocols that allow several types of financial products to be created,
issued, and traded for any pair of underlying ERC20 tokens. Our approach uses off-chain
order books with on-chain settlement to allow creation of efficient markets. All described
protocols are fair and trustless, creating truly open markets that are not governed by a
central authority. The protocols are extensible by anyone, requiring no special
permissions to be used with other smart contracts.

Motivation:

Liquidity for DYDX at the moment is grim for anyone investing with decent size, be it on CEX’s or on DEX’s. A gauge that earns CRV would greatly improve this liquidity, which in turn would be good for Token Holders and Investors. As DYDX is planning to go fully decentralised this year with DYDX V4, it might be prudent for Curve to adopt a Gauge for the DYDX Pool in order to solidify its position in the Defi Ecosystem.

For:
DYDX-ETH should have a gauge than can earn CRV

Against:
DYDX-ETH should not have a gauge than can earn CRV

Poll:

Post a link to your proposal if it’s already been created

3 Likes
#2

yes pls! I’d provide
face

2 Likes
#3

Hi!

Could you please align the format of this proposal with: Gauge Proposals - Curve.fi Governance

This should automatically populate the post with a few questions for the DAO that need to be answered before the DAO has enough information to vote in favor or against your proposal.

2 Likes
#4

Summary:

Proposal to add DYDX + ETH v2 pool to the Gauge Controller to enable users to assign gauge weight and mint CRV.

References/Useful links:

• Website

https://dydx.exchange/

• Documentation

https://docs.dydx.exchange/#general

• Github Page

https://github.com/dydxprotocol/

• Communities

https://forums.dydx.community/
https://discord.com/invite/Tuze6tY

• Twitter
https://twitter.com/dydxprotocol

Protocol Description:

Dydx is a perpetual futures exchange on Starkware’s Layer 2; currently running on StarkEx but inevitably moving towards Starknet (public) later this year.
To quote data cited on their site at the time of writing this proposal:
Over 2 billion USD in 24h trading volume
Over 370k individual trades over the past 24h

Over 1 billion USD in open interest

Their VC list is extensive, to mention a few: Horowitz, a16z, 3AC (& defiance), Paradigm, Polychain, Wintermute,…

Revenue generated by the exchange is currently going to centralized entities, but those are said to be dismantled by the end of 2022 source.

The $DYDX token is currently only used for governance & as a safety backstop in the case of systemic unprofitable liquidations.

Motivation:

Explain why this pool needs incentivization

CRV rewards could bring substantial off-chain liquidity back on-chain, while also attracting other on-chain liquidity into curve (there’s currently 5M USD worth of dydx/eth liquidity deployed on uni v3, with 2.7M USD 24h volume at the time of writing, 9th february 2022)

Audit:

PeckShield audit report

Oracles used by the dydx exchange:

Oracle prices are equal to the median of the reported prices of 15 independent Chainlink nodes.

Those nodes are listed here
Although used by the platform, they are in no direct relation to the dydx Token itself or causally related to its pricing.

Centralization vectors:
The current dydx product sheds its revenue to dydx Trading inc.
There’s also the DYDX Foundation
Both will be dismantled by the end of 2022 source

Market History:
Inception through airdrop. Coingecko price history starts september 8, 2021.
ATH $28
ATL $5
Most of the volume & liquidity currently sits on centralised exchanges, many of them known wash-traders & grifters. Reliable on.chain data is sparse while comparative volume & liquidity is small in size.

2 Likes
#5

Thanks for the update! Very cool of you. Could we potentially have the on-chain gauge vote set up? I think the community is excited to on-board DYDX as an asset on curve V2!

1 Like
#6

https://dao.curve.fi/vote/ownership/124

It’s done!

2 Likes