dYdX to allow permissionless listing with new update
The crypto trading platform dYdX announced new updates to its dYdX chain, including permissionless listing, which allows market participants to list tokens without approval.
According to dYdX, it would allow its users to list any market on the dYdX chain without the need for governance approval. The team also said that users can instantly list markets if they deposit a certain amount of USD Coin ( USDC ) into a “MegaVault,” another new feature that provides market liquidity.
The chain will determine the amount needed to list new markets through its governance mechanism. dYdX claimed that the new permissionless market listing with automatic liquidity is not yet available in any other decentralized exchanges (DEXs) or centralized exchanges (CEXs) .
dYdX reveals new master liquidity pool
Along with its permissionless listing feature, dYdX is also introducing its MegaVault, a feature that ensures sufficient liquidity in all of its markets. This includes new markets that will be added through the permissionless listing feature.
MegaVault would serve as the platform’s master liquidity pool and market maker for all of its markets. The vault would allow users to deposit liquidity and receive a portion of the revenue it generates. The exchange highlighted that depositors will also receive a share of protocol revenue, which its governance will determine.
dYdX claims this method will produce a high annual percentage rate (APR) for its investors. Furthermore, MegaVault depositors will not need to choose which markets to provide liquidity for, as the funds will automatically market-make across various markets.
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dYdX said that users would generate yields from various sources, including vault positions, trading fees and other incentives. In addition, users will be able to deposit and withdraw their USDC from the vault at any time. dYdX wrote:
“In the initial version of MegaVault, users will be able to withdraw from MegaVault at any time after depositing, though users may experience slippage based on MegaVault’s status and positions as well as market conditions.”
However, the team added that withdrawals could potentially be subject to restrictions like lockup periods in future iterations of the MegaVault. This may apply to new market listings, ensuring that the markets have liquidity.
dYdX said the feature is still under development and will be released in the next few months.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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