MegaVault Operator

Full RFP description can be viewed here.

‍1. MegaVault Overview

On Aug 6, 2024,  dYdX Trading published a deep dive on the MegaVault.

MegaVault is an upcoming user-facing feature on the dYdX Chain that enables users to deposit USDC in exchange for yield while providing liquidity to various markets on the dYdX Chain. The deposited USDC will be utilized in automated market-making strategies across markets on dYdX Chain.

MegaVault will operate using multiple “sub-vaults,” each running an automated market-making strategy for a specific market. The initial version of MegaVault will require an “operator,” elected via governance, to manually perform critical operational tasks such as moving USDC between sub-vaults and adjusting parameters that control the vault’s quoting strategies. Future iterations may automate these tasks, potentially removing the need for an operator.

2. Expected Responsibilities of the MegaVault Operator

The operator is expected to conduct preliminary research into the workings and requirements for a successful deployment and operation of the MegaVault. Preliminary research includes reviewing the vault parameter codebase, designing a playbook for how to manage allocations, and thinking through risk management strategies.

The operator will be responsible for drafting and submitting a governance proposal to launch the MegaVault and assign themselves as the operator.

If the dYdX community approves of the proposal, we expect the following ongoing responsibilities for the operator role:

1. Managing USDC Allocation:
2. Adjusting Sub-Vault Parameters:
3. Monitoring and Risk Management:
4. Reporting and Transparency:
5. Coordination with Governance:
6. Transition to Future Automation:

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