MegaVault is a user-facing feature that enables dYdX users to deposit USDC, provide liquidity to various markets, and earn yield in return. By aggregating liquidity from depositors, MegaVault ensures that every market maintains the necessary liquidity for smooth and efficient trading.
At a technical level, MegaVault will operate multiple “sub-vaults.” A sub-vault uses deposited USDC to run an automated market-making strategy for a given market. Deposited USDC is allocated to these sub-vaults, and the yield they generate is aggregated and distributed to MegaVault depositors.
Users can deposit USDC into MegaVault at any time and start earning yield immediately. At a high level, depositors can think of deposits as owning a percentage of the vault’s net equity (i.e., the vault’s USDC and position values).
Except in the case of Instant Market Listings, users will be able to withdraw from MegaVault at any time after depositing, though they may experience slippage based on MegaVault’s status, positions and market conditions.
For MegaVault to work effectively, it requires a dedicated operator to configure and optimize settings across all sub-vaults continuously. This includes spread parameters, skew factors, and liquidity allocation weights that determine how capital is deployed across markets. The operator must monitor market and vault activity and maintain these settings in real-time to ensure optimal market efficiency while protecting vault depositor returns.
On November 21, 2024, dYdX community elected Greave as MegaVault's operator, granting it the ability to update the parameters mentioned above.
1. Visit dYdX
Navigate to dydx.trade/vault to access the MegaVault page.
2. Connect Your Wallet
To interact with MegaVault, connect a compatible wallet such as MetaMask, Coinbase Wallet, OKX Wallet, Keplr, or many others.
3. Select Deposit Amount
Enter the amount of USDC you wish to deposit into MegaVault. Choose an amount that aligns with your investment strategy and risk tolerance.
4. Approve and Confirm the Transaction
Approve the transaction through your wallet by signing and confirming it. Ensure you have enough funds to cover the gas fees associated with the deposit.
5. Deposit USDC into MegaVault
Once approved, your USDC will be deposited into MegaVault and start earning yield immediately.
6. Generate Passive Income
With your USDC deposited, MegaVault begins automated market-making activities. You’ll earn a share of the profits from MegaVault’s operations and a portion of protocol revenue. Your earnings are added to your deposit balance.
8. Withdraw Anytime
MegaVault has no lock-up periods. Deposits and withdrawals are instant. Visit the MegaVault page to withdraw your funds whenever you like.
