dYdX Introduces Isolated Markets and Isolated Margins

dYdX, the decentralized trading platform, is set to launch Isolated Markets and Isolated Margins. This upgrade is part of the upcoming Release 5.0 of dYdX Trading’s v4 open-source software suite and is anticipated to take effect in the next few weeks.

Benefits of Isolated Markets

Isolated Markets, unlike the current cross-margined markets, have segregated collateral pools and their own insurance fund. This arrangement allows each market to have its distinct risk properties, enabling the protocol to safely support a broader range of market types.

The introduction of isolated markets will significantly expand the number of markets available on dYdX. The new market widget, which sources markets from v4-web, currently lists approximately 20 markets. With the advent of isolated markets, this figure is expected to soar to over 800 potential markets.

Expanded Market Universe

The markets that can be listed via the new market widget will include those available on at least two centralized exchanges or at least one decentralized exchange, subject to specific liquidity and market-cap guidelines. The methodology for the new market widget universe will be open-sourced at docs.dydx.exchange.

This release will also see the first-time querying of prices directly from decentralized exchanges on dYdX Chain. The initial protocol validators will be able to query from is Raydium, resulting in Raydium markets being available for listing on dYdX.

Role of Isolated Margin

Isolated Margin makes trading easier for traders by allowing them to trade any market as an isolated position. They can confine collateral to a specific position and manually adjust their collateral for that given position. This flexibility enables users to have more control and understanding of their collateral management.

While all isolated markets will need to be traded with isolated margin, markets that are cross-margined on the protocol can either be traded with user cross or isolated margins via the UI.

Adding New Markets

The process of adding new markets will remain the same as it is today, through governance. Eventually, adding new markets to dYdX Chain will be fully permissionless, enabling markets to be listed instantly without any governance process.

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In a significant move for crypto traders, Binance Futures has announced the launch of its new Funding Rate Arbitrage Bot. The bot, aimed at facilitating more efficient trading, is available on the Binance website, with app availability expected in June.

Special Promotion with USDT Prize Pool

To celebrate the bot’s launch, Binance Futures is running a special promotion. Eligible users can partake in a share of a 50,000 USDT prize pool. The promotion period runs from 2024-05-15 11:30:00 (UTC) to 2024-05-29 11:30:00 (UTC).

There are two promotional offers in place. In Promotion A, eligible users who set up their first arbitrage bot and maintain it for 72 hours during the promotion period can earn 10 USDT per user from a 30,000 USDT prize pool. This offer operates on a first-come, first-served basis.

In Promotion B, new users who have never traded on Binance Futures prior to the promotion period can receive an additional 10 USDT token voucher after participating in Promotion A, again on a first-come, first-served basis.

How the Funding Rate Arbitrage Bot Works

The Funding Rate Arbitrage Bot utilizes funding fees – periodic payments exchanged between long and short positions in perpetual futures contracts. The bot aims to allow traders to earn these fees by opening a position on perpetual futures and hedging it by taking an opposite position on the same symbol in the spot market.

There are two types of strategies: Positive Carry, where the bot buys assets on the spot market and shorts the corresponding perpetual futures contract, and Reverse Carry, where the bot sells assets on the spot market and goes long on perpetual contracts.

How to Participate

Participation involves three steps. Firstly, users must log in to their Binance Futures account. Secondly, they must register for the activity by clicking on ‘Register Now’ on the activity page. Finally, users must set up their Arbitrage Bot Strategy and let it run for at least 72 hours.

Terms and Conditions

There are several terms and conditions attached to the promotion. Notably, all vouchers will be distributed within 14 working days after the conclusion of the campaign. The validity period for all vouchers is 14 days after distribution. The campaign is only available to users who are eligible for trading on Binance Futures and may be restricted in certain jurisdictions or regions, depending on legal and regulatory requirements.

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Introducing the Sei V2 Launch

The highly anticipated Sei V2, a proposed upgrade to the live blockchain, is on the horizon. This upgrade is expected to bring the first highly performant parallelized EVM into production, pending a Governance approval process.

The launch is scheduled to occur in three phases, each meticulously designed to ensure optimal network performance, set accurate expectations and minimize risk. By taking a measured approach to the rollout, Sei Contributors can conduct rigorous testing, monitor network stability, and guarantee that all third-party infrastructures are ready for users to begin using Sei at scale.

Phase 1: Governance

As a permission-less, open-source, delegated proof-of-stake network, Sei is governed by SEI token holders. Sei Labs engineers are set to notify validators about the readiness of V2 for Mainnet adoption via an onchain proposal. This will kickstart the Governance approval process, following numerous audits and ongoing optimizations discovered during the Sei V2 public Devnet.

Phase 2: Alpha Launch, Stability, and Third-Party Infrastructure Deployment

Once the Governance approval process is accepted, validators will begin to upgrade their software, and the existing Sei Pacific-1 Mainnet will be upgraded to “v2”. At this stage, deploying EVM-based contracts and beginning infrastructure integrations on Sei will become possible. Existing applications and tokens will continue to function as they did before the upgrade.

This phase is expected to span days rather than weeks, during which Sei Labs will monitor and report on chain stability. Certain functionalities, such as bridges, will require additional time to deploy to Mainnet before they can be utilized by the community.

Phase 3: v2 Ready

Upon achieving stable v2, an announcement will be made via the official Sei Twitter account, indicating that critical infrastructure such as RPCs, bridges, indexers, and multisigs are ready. Initially, a block gas limit will be in place for stability purposes. As demand increases, this limit will be raised to meet the needs of the community.

While this upgrade marks a significant stride forward, the work to continuously optimize Sei does not end here. The ultimate goal is to build a blockchain capable of supporting consumer-grade applications and serving millions of users.

Stay tuned for more updates on the Sei V2 launch.

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