Proposal to add DYDX/ETH to the Gauge Controller

Original Post by 0xVespasian, posted in the wrong category.


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

• Documentation

• Github Page

• Communities

• Twitter

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.


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)


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.