What is dYdX?
dYdX is a decentralized cryptocurrency exchange made of smart contracts on the Ethereum blockchain network and zero-knowledge STARK Rollups powered by Starkware. The exchange supports perpetual trading and allows users to trade with no intermediaries. It is one of the largest decentralized cryptocurrency exchanges in the world in terms of market share and trading volume.
Founded in August 2017 by California-based entrepreneur Anonio Juliano, dYdX initially offered crypto margin trading, lending, and borrowing services. Several years later, the exchange evolved through three iterations to accommodate cross-margin perpetual trading which allows users to repurpose their balance on the exchange to provide liquidity to existing trades.
Grant size:
Varies on grant type
Founded:
2017
Location:
California, USA
Token:
DYDX
Website:
dydx.community
DYDX (dYdX) is the governance token for the layer 2 protocol of the eponymous non-custodial decentralized cryptocurrency exchange. It serves to facilitate the operation of layer 2 and allows traders, liquidity providers, and partners to contribute to the definition of the protocol’s future as a community.
The dYdX Grants
There are several different types of open grants on the dYdX grants page at any given time. Closed, previous grants can also be viewed there. Currently, the following types of grants are available:
Funding Rate Bounding Research
Today, dYdX bounds funding rates to a range between -0.75% and 0.75%. Capped funding rates make the exchange vulnerable to issues like oracle drift due to funding rate arbitrages and excessive trading flow. dYdX is looking for experienced risk teams and perpetual market researchers to conduct in-depth research on setting the optimal max funding rate for dYdX. The deliverable should include a report with peer analysis and a community vote to enact the changes. Funding amount ranges between $20,000 – $40,000.
Local Workshops
As part of the dYdX International Growth budget, the Grants team is looking to support local communities through interactive events instead of traditional sponsorship grants. Workshops can be educational lessons, interactive walkthroughs, and builder-oriented with live projects. If you’re interested in gathering up a group of traders and builders to get their hands dirty in dYdX, applying for a workshop grant may be the right option for you. Funding is $1,000 – $2,500.
Multi-Asset Collateral Research
Today, dYdX supports USDC as a form of trading collateral. In a V4 environment, the community may look towards adopting additional assets to be eligible for collateral. Doing so will require assessment criteria and an in-depth analysis of the risk management required to manage non-USDC collateral. With this grant, dYdX is hoping to answer the question of what the community will need to think about when adding new collateral assets. Funding amount ranges between $10,000 – $25,000.
Academy Page Contributions
The grants team is creating an Academy Page Working Group to help launch a dYdX Academy page. The group will be used to coordinate all educational and dYdX-related content to be created across different grants. The funding amount can be $2,500 – $10,000.
DYDX Integration
The Grants team is looking for community members who can lead initiatives to get dYdX listed on decentralized lending protocols (e.g. Compound, Aave) as collateral or alternative yield-bearing opportunities for DYDX holders. Funding can be $25,000+
Hedgie Integration
Promote the use of Hedgies integrating into platforms, add-ons, benefits, and more. The funding amount can be $10,000 – $20,000.
Event Sponsorship
Grant to sponsor a crypto or trading-related event that includes marketing and promotion, funded up to $5,000 – $20,000.
Third-Party Integration
Collaborating, Integrating, and Partnering with third-party services that can help promote dYdX or benefit the community for between $5,000 – $20,000.
Project Proposals
To help inform the types of grants which are most likely to get funded, they highlight the following target areas:
- Protocol development (including core Aave protocol development, development of higher layer protocols which use the Aave protocol)
- Applications and integrations (front-ends and other applications that use the Aave protocol)
- Developer tooling
- Community (marketing and educational)
- Committees, sub-committees, and DAOs that serve the Aave ecosystem
- Code audits
- Events and hackathons
- Bounties
Application Process
Grants can be applied to from the dYdX grants webpage, where an in-page airtable webform asks for the following information:
- Name
- About You / Team
- Additional Links
- Grant Name
- Grant Description
- Grant Category
- Grant Goals
- Milestones
- Timeline
- Funding Request
- Budget Breakdown
- Are you located in the US?
- Other Information
- Referral
Additional details
The dYdX Grants team follows a standard criteria when assessing applications. The following qualities guide the team’s selection:
- Relevance – All funded projects should be applicable to dYdX and its community. Grants must involve, build on top of, or benefit the protocol in some capacity.
- Benefit – The goal of this program is to grow the protocol and benefit the community. Grants must result in beneficial progress contributed to dYdX.
- Feasibility – Ideas and discussions are great, but only realistic projects with tangible results will be funded.Can the project really be accomplished?
- Execution – Applicants must provide a clear execution plan for completing the project and reaching the goals.
- Qualification – While we do our best to support growth and learning, applicants must have some background or credentials to prove their capabilities.
- Originality – Projects must contribute something new to the protocol, not just repeat existing grants or previous work.
- Cost – The team does its best to attract high quality contributors with competitive funding without overspending.