TreasuryBridge Smart Contract

Overview of the TreasuryBridge Smart Contract

TreasuryBridge Contract

Since the TreasuryVester Smart Contract is immutable, an updated Treasury Smart Contract, TreasuryBridge Smart Contract was developed. The TreasuryBridge Smart Contract, if deployed and if the dYdX community decided through dYdX governance, could -

• One time: reject new vesting from the TreasuryVester Smart Contract by calling the setRecipient function on this contract to set the recipient to a burn address, and

• Ongoing Basis: allow governance to bridge any amount of existing tokens in the community treasury or the rewards treasury (the current Treasury Smart Contract only allows transfer() and approve()).

Note, the TreasuryBridge smart contract is similar to the current corresponding Treasury Smart Contract except for the two differences referenced above.

Also note, for the dYdX community to effectively migrate ethDYDX to the dYdX Chain through dYdX governance, two TreasuryBridge Smart Contracts will need need to be deployed - one for the community treasury and one for the rewards treasury.

Resources

• Github TreasuryBridge Smart Contract

• Peckshield Audit Report

V3 Treasury Contracts

24.2% (241,735,862 $DYDX) of the token supply is allocated to the v3 community treasury for the dYdX community to use on an ongoing basis for contributor grants, community initiatives, liquidity mining, and other programs. Initially,5.0% of the token supply (50,000,000 ethDYDX) was allocated to the community treasury, and 766,703 ethDYDX vests in the community treasury each epoch. Currently, 3,787,251 ethDYDX vest in the community treasury because several governance proposals resulted in a 3,020,548 ethDYDX increase in the amount of ethDYDX available to the dYdX community each epoch:

• DIP 14 - set the rewards for staking USDC to 0 (383,562 ethDYDX per epoch),

• DIP 16 - reduce trading rewards by 25% (958,904 ethDYDX per epoch),

• DIP 17 - set the rewards for staking $DYDX to 0 (383,562 ethDYDX per epoch),

• DIP 20 - further reduce trading rewards by 45% (1,294,520 ethDYDX per epoch), and

• DIP 24 - reduce Liquidity Provider Rewards by 50% (575,342 ethDYDX per epoch).

Objectives

• Fund programs and initiatives that drive the growth of dYdX.

• Develop grant programs to fund community NFTs, hackathons, analytics dashboards, memes, swag, third-party tools, translations, and other projects.

• Develop a best-in-class governance system and incentivize robust governance.

Overview

The community treasury will retain ethDYDX to use as ethDYDX holders decide, whether it be for grants, new liquidity mining pools, or any other program. ethDYDX will vest to the community treasury on a continuous basis over the course of five years. A governance vote will be required to spend any ethDYDX from the community treasury.

If, after five years, governance decides to enact perpetual inflation (at a maximum annual inflation of 2%), any newly minted ethDYDX will be available to the community treasury.

FAQ

How does $DYDX vest in the Community Treasury?

Every second, the Community Treasury Vester (see details here) vests 0.3169242627 ethDYDX to the Community Treasury. Once ethDYDX has been vested, calling the claim function on the Community Treasury Vester will transfer the vested ethDYDX to the Community Treasury. Any dYdX community member can call the claim function on Etherscan here (which would require some ETH for gas fees) to move the vested ethDYDX from the Community Treasury Vester to the Community Treasury.

Please refer to the dYdX Foundation’s Terms of Use for further details on the control of the Community Treasury by the dYdX community.

What is the vested balance of the Community Treasury?

dYdX community members can view the vested balance of the Community Treasury here. Further, dYdX Foundation publishes for information only the vested balance of the Community Treasury in the Epoch Review at the end of each epoch. In addition to the vested ethDYDX in the Community Treasury, the dYdX community can also access the ethDYDX accruing in the Rewards Treasury as a result of the votes to:

• DIP 14 - set the rewards for staking USDC to 0 (383,562 ethDYDX per epoch),

• DIP 16 - reduce trading rewards by 25% (958,904 ethDYDX per epoch),

• DIP 17 - set the rewards for staking $DYDX to 0 (383,562 ethDYDX per epoch),

• DIP 20 - further reduce trading rewards by 45% (1,294,520 ethDYDX per epoch), and

• DIP 24 - reduce Liquidity Provider Rewards by 50% (575,342 ethDYDX per epoch).

Starting in Epoch 26, 3,595,890 ethDYDX will accrue in the Rewards Treasury each epoch and can be used by the dYdX community with a governance vote.

Who can submit proposals to spend ethDYDX from the Community Treasury?

Any user with sufficient proposing power can submit proposals. A governance vote will be required to spend any ethDYDX from the Community Treasury. To submit a proposal, please submit a dYdX Improvement Proposal (DIP) as laid out in the DIP Proposal Lifecycle.

How do you go about building a proposal to spend funds from the Community Treasury?

Reverie has put together a comprehensive, technical, step-by-step guide on how any dYdX community member with more than 5M ethDYDX (proposal threshold for a short timelock vote) of proposal power can create a proposal to transfer ethDYDX from the Community Treasury to a destination address. Click here to access the technical guide.

What types of proposals can be submitted to the Community Treasury?

A community-managed treasury opens up a world of possibilities. We hope to see various experiments and initiatives, including ecosystem grants, which can foster the dYdX Layer 2 Protocol’s ecosystem growth.

The TreasuryVester contract was inspired by Uniswap.

Contract	Address
Rewards Treasury	0x639192D54431F8c816368D3FB4107Bc168d0E871
Rewards Treasury Vester	0xb9431E19B29B952d9358025f680077C3Fd37292f
Community Treasury	0xE710CEd57456D3A16152c32835B5FB4E72D9eA5b
Community Treasury Vester	0x08a90Fe0741B7DeF03fB290cc7B273F1855767D8
Short Timelock Executor	0x64c7d40c07EFAbec2AafdC243bF59eaF2195c6dc
Merkle Distributor	0x01d3348601968aB85b4bb028979006eac235a588
Safety Module	0x65f7BA4Ec257AF7c55fd5854E5f6356bBd0fb8EC
Liquidity Staking	0x5Aa653A076c1dbB47cec8C1B4d152444CAD91941
DydxToken	0x92D6C1e31e14520e676a687F0a93788B716BEff5
DydxGovernor	0x7E9B1672616FF6D6629Ef2879419aaE79A9018D2

https://docs.dydx.community/dydx-governance/resources/technical-overview

The Short Timelock can only execute governance-approved actions.

There are two vesting contracts, the Rewards Treasury Vester and the Community Treasury Vester. Each vester vests ethDYDX to the respective treasury contract - Rewards Treasury Vester to the Rewards Treasury and Community Treasury Vester to the Community Treasury.

dYdX governance under the Short Timelock Executor, controls the Rewards Treasury and the Community Treasury. As such, the dYdX community through dYdX governance can transfer funds in the Rewards Treasury and the Community Treasury to any address and/or approve any address to spend funds from either treasury.

Each treasury vester will vest tokens linearly over ~5 years (August 3rd 2021 - August 3rd 2026) to the corresponding treasury.