This grant will fund the deployment of capital for testing and analysis of the new LP Vaults functionality launching on dYdX. LP Vaults will allow users to deposit capital for liquidity provisioning on long-tail markets using delta-neutral market making strategies. These vaults may allow users to profit in the long run, and will hopefully contribute towards significantly more liquidity on long-tail markets of dYdX.

In response to MEV and trade censorship issues, dYdX would like to explore the implementation of Trusted Execution Environments (TEEs) (e.g. SGX server) on the protocol's validator set. TEEs would allow the protocol to manage client deployments and enable encrypted market order data, preventing censorship and frontrunning. The goal of this research is to explore the viability of TEEs as a solution to MEV. The team will experiment with bandwidth and order processing on TEEs, and develop a framework for implementing this as a solution. If the research is successful, and the dYdX community or contributors chooses to use the framework, the team will unlock an additional success fee.