Markets
On dYdX Chain, each market pair has a set of parameters that can be adjusted by governance, the parameters are as follows:
Title | Definition |
sequentially-generated value | |
human-readable name of the market pair | |
exponent of the price. e.g. if | |
the minimum number of exchanges that should be reporting a live price for a price update to be considered valid. | |
the minimum allowable change in | |
A string of json that encodes the configuration for resolving the price of this market on various exchanges, otherwise also known as “oracle”. On dYdX Chain, oracles are used for the following:
|
Liquidity Tiers
Markets of similar risk are categorized into Liquidity Tiers based on standardized risk parameters. These tiers define the margin requirements for each market and should be determined according to the depth of the relative market's book and the market capitalization of the token.
Initial_margin_ppm
= the margin fraction needed to open a position.Maintenance_fraction_ppm
= the fraction of the initial-margin that the maintenance-margin is.Base_position_notional
= the maximum position size at which the margin requirements are not increased over the default values.Impact_notional
= the impact notional amount (in quote quantums) is used to determine impact bid/ask prices and its recommended value is 500 USDC / initial margin fraction.
id | name | initial_margin_ppm | maintenance_fraction_ppm | base_position_ notional | impact_notional | maintenance_fraction (as is) | impact_notional (as is) |
0 | 50000 [0.05] | 600000 [0.6] | 1000000000000 [1,000,000 USDC] | 500 USDC / IM | 0.03 | 10000000000 [10,000 USDC] | |
1 | 100000 [0.1] | 500000 [0.5] | 250000000000 [250,000 USDC] | 500 USDC / IM | 0.05 | 5000000000 [5,000 USDC] | |
2 | 200000 [0.2] | 500000 [0.5] | 100000000000 [100,000 USDC] | 500 USDC / IM | 0.1 | 2500000000 [2,500 USDC] | |
3 | 1000000 [1] | 200000 [0.02] | 1000000000 [1,000 USDC] | 2,500 USDC / IM | 0.2 | 2500000000 [2,500 USDC] |
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