dYdX Approved 4% Maximum Funding Raise And Bug Fixes In Perp V3 Contracts

Key Points:

• The dYdX community approved the DIP 22 proposal in an online vote, proposing to increase the maximum funding rate (8h) from 0.75% to 4% and fix data errors in the V3 perpetual contract.
• Changing the maximum funding rate improves the trading experience and reduces the need for manual intervention through margin adjustments.
• Implementing the fix allows them to exit the dYdX exchange in the event it freezes reliably.

On April 24, the dYdX community adopted the DIP 22 proposal in an online vote, proposing increasing the maximum funding rate (8h) from 0.75% to 4% and correcting data errors in perpetual contract V3.

The study identified several cases where the maximum ratio was insufficient to encourage convergence between the dYdX market price and the underlying index price. This needs to be improved in the market and trading experience. To address this, Financial Consideration proposes to increase the maximum 8h rate to the limit from -4% to 4%, up from -0.75% and 0.75%. This change will improve the trading experience and reduce the need for manual intervention through margin adjustments. The proposal states that changing the maximum funding rate will enhance the trading experience and reduce the need for manual intervention through margin adjustments.

Also, the data error mentioned in the proposal is: there is a bug in the current version of the dYdX StarkEx Cairo code, just in the specific case that the transaction results in a collateral balance of precisely zero ( after all fees are paid) and for the account will trigger this vulnerability. This can make it impossible to get a refund after the trading platform is frozen, and neither dYdX nor StarkWare can help users.

Implementing this fix will ensure no dependency on dYdX Trading and StarkWare to allow users to rebuild the entire Merkle Tree of Locations holding positions. In particular, this will enable them to exit the dYdX exchange in the event it freezes reliably.

The snap vote ended with the consent of 657 voters and 18 million DYDX (99.99%). Voting results showed significant support for the proposal.

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