Basis trading, also known as cash-and-carry, is a popular trading strategy that benefits from the price difference between spot and perpetual markets. Because perpetual markets sometimes trade at a premium or discount to the underlying spot price, traders can take offsetting positions between the two and profit from funding rates. As an example, if the price of ATOM-USD on dYdX is trading above the price of ATOM-USD on Osmosis, and the dYdX market has a positive funding premium, traders can buy ATOM on Osmosis and sell the same amount on dYdX. Through these two trades, the trader has no exposure to price but earns funding interest from the short position on dYdX.
We would like to build a tool that lets users find and execute basis trading opportunities on dYdX and a Cosmos-based spot platform (e.g. Osmosis). The tool should execute both trades simultaneously, allow users to track their profitability, and make existing the two positions simple.
Staking lets users lock their tokens to provide economic security for a blockchain. In return, stakers receive a reward from the protocol. Typically, that reward is paid out in the same token that was staked (the protocol’s native token). Users can claim rewards and immediately stake those tokens to further build their stake and accumulate even more rewards.
The dYdX Chain will reward stakers with fees collected from trading activity, which are paid in USDC. Users will stake DYDX and receive USDC rewards. We would like to replicate the experience described above by building a tool that lets users periodically claim their USDC rewards, swap the USDC to DYDX, and then stake that DYDX back to the protocol. This will allow users to seamlessly increase their staked DYDX, earning more rewards as their position grows. Users should be able to switch this option on and off based on their preferences.
As part of our International Growth budget, the Grants team is looking to support local communities through interactive events instead of the traditional sponsorship grants. Workshops can be educational lessons, interactive walkthroughs, and builder-oriented with live projects. If you’re interested in gathering up a group of traders and builders to get their hands dirty in dYdX, apply for a workshop grant!
Grant to sponsor a crypto or trading related event that includes marketing and promotion.
Collaborating, Integrating, Partnering with third-party services that can help promote dYdX or benefit the community.