Liquidity & Safety Staking Research Retroactive


Funding amount


Start date

October 2022




Xenophon Labs has conducted research on the efficiency of both the Liquidity Module and Safety Module in dYdX. The research was published in detailed written reports and accompanying Dune dashboards to visualize the data. Through this research, both modules were found to be inefficient sources of DYDX protocol emissions. Following the Liquidity Module research, the community approved a proposal to sunset the module, resulting in 383,562 DYDX accruing to the dYdX Community per epoch. In total, the protocol is saving +19M in DYDX emissions through this proposal.


Reducing inefficient protocol emissions is an important step to improving the efficient allocation of DYDX. By redistributing these emissions to the dYdX Community, community members can now opt to push forward new initiatives, perform treasury allocations, or re-allocate the DYDX in different community run programs. Research like this is crucial to continue improving the protocol and pushing forward new measures of improving DYDX allocations.

Payment structure

100% upfront as a Retroactive

Impact & Metrics

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