This is a grant to the Chaos Labs team to design and administer the dYdX Launch Incentives Program. The dYdX community has already approved the allocation of $20M in DYDX From the dYdX Chain Community Treasury for this initiative via a Snapshot vote. The Chaos Labs team will design the launch incentives distribution framework with community feedback and build a public-facing portal to be utilized by the community. The portal will be an all-encompassing data hub for v4, allowing for complete transparency across all markets and aggregating top-level data. When trading is live on dYdX v4, Chaos will conduct a thorough trading season analysis for each epoch, prepare transparency reports, and make recommendations for incentives distributions according to the incentives distribution framework. These recommendations will be decided upon by dYdX governance before rewards are distributed to traders.

The grants team engaged Chaos Labs to onboard as a service provider through a formal agreement: https://drive.google.com/file/d/11xOb0fTciB2bueUbHMdH7pD3lyj_yAdn/view. The scope of work included a New Asset Listing portal, LP Reward Reporting and Analysis, and a Market Maker Risk portal. After starting work, dYdX announced the transition to v4, including updates that clashed with these deliverables (new assets paused and potential sunsetting of LP rewards). In response, the agreement was put on pause to negotiate its continuation and possible repurposing to a new scope. Chaos had already completed $300,000 in deliverables by the time it was paused, making them entitled to this compensation. After exploring alternatives, we have decided to terminate this engagement in favor of other projects with Chaos.