Research

Basis Trading Research

Completed

Project link

Funding amount

$15,000

Start date

January 2023

Execution

4 months

Team

Blockworks Research

Description

Funding an in-depth look at the opportunities for cash-and-carry trading in the existing dYdX product. Given the lack of native spot markets, there are capital efficiency considerations, external protocol integration requirements and risks, and other important topics to explore in determining whether a well-capitalized trader can efficiently perform basis trades using dYdX. The delivered report will help traders explore these opportunities and position themselves to capture funding premiums on dYdX.

Purpose

Basis trading is among the most popular strategies adopted across perp exchanges to profit from the price premiums and perp funding rates. These strategies have driven significant volume across other platforms that also support spot markets. Since dYdX only supports perpetual markets, it's harder to execute these trades natively on the platform. To help explain the technical, capital, and trading requirements needed to execute these trades through dYdX, the report will cover all implications and possibilities. The report will serve as both a research piece on possible future developments for the platform and immediate guide for users hoping to trade basis.

Payment structure

25% upfront, 75% at completion

Useful Links

Impact & Metrics

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