Asset Listing Temperature Check: List $DYDX on Compound

This forum post intends to serve as a temperature check before creating a proposal to list $cDYDX on Compound.

We are Blockchain at Berkeley - a student organization that is a delegate for both the dYdX and Compound protocol. Full disclosure we received a grant from dYdX DAO to list $DYDX governance token on decentralized exchanges. We hold no $DYDX that is not a governance delegation nor hold any positions on the dYdX platform or Compound platform.

The dYdX protocol has allowed for perpetual trading on Ethereum since going live in July 2021. It is one of the leading- if not the leading- blockchain-enabled derivatives trading platforms. dYdX leverages StarkEx as a layer2 solution to settle orders. Currently, dYdX operates on a centralized order book but is set to fully decentralize its operations via the V4 upgrade scheduled for Q4 2022. dYdX has been growing and decentralizing methodically- the DAO is extremely active and currently decentralizing development through the ambassador program. 2022 is a big year for the protocol - you can read about their roadmap here.

$DYDX is the governance token for the dYdX protocol - it was originally minted August 2021. $DYDX has most of its liquidity concentrated on Uniswap V3 - So updating the Uniswap Anchored View contract to support Uniswap V3 oracles is a necessity before this asset listing occurs. $DYDX issuance occurs in the form of platform rewards.

Below are some notable stats about token liquidity

  • Traded on Binance, Okex, Coinbase, and FTX.
  • DEX liquidity: Uniswap v3 $900k, Sushiswap $200k
  • Uniswap V3 7d volume $900k
  • Notable: The treasury holds 5% of minted $DYDX.
  • FDV: $1.7B

We want to open the floor to any concerns that may arise regarding this asset listing proposal. We will deploy $cDYDX with a 0% collateral factor and 25% reserve factor. We’ve already deployed $cDYDX on Ropsten test network - the contract can be viewed here

We appreciate community feedback. Please vote yes in this poll if you would support bringing this proposal to vote (with neccessary modifications).

  • Yes
  • No

0 voters

Compound Asset Listing - Overview

It seems you have to complete this checklist

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Ah - thank you. This was meant to collect sentiment and field initial concerns. We will post in New Markets following this guide.

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Can we not do it for staked DYDX ? What would be the implication of turning stDYDX in a cToken ?

Liquidity is worse
easier price manipulation

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I’m just wondering what could make me withdraw the stkDYDX and add to compound ? Currently I get bonus on trading fees plus %% … Only downside is the safety lock period but I somehow agree for dydxs safety. Obviously as it stands we loose those benefits if we add to compound…. could we work on a strategy where comp could still grant dydx depositors some benefits ?

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Maybe a proposal on dydx to share some of those privileges to dydx compound depositors … compound to then promise to deposit some of that to secure dydx further and and change the rewards gained in comp for dydx depositors on Compound as COMP …

Thank you for bringing this up - I’ll check in with the dYdX community to see if they would be in favor of pursuing a complimentary proposal, providing dYdX platform reward access to $cDYDX token holders. I think listing $stDYDX on Compound is not a great alternative, because of lower liquidity as @ClairvoyantLabs pointed out.

You can follow the discussion on dYdX forum regarding allowing $cDYDX in the safety staking pool

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I agree stkDYDX might be tricky to list and not feasible but if we can get some trading discounts as cDYDX that would be awesome a plus for both protocols. I will head to dYdX forum for more … its Yes from me from get-go

1 Like