From 0521a5835aad6899662a2159d1b2f1172bb5bc0e Mon Sep 17 00:00:00 2001 From: "dr. mia von steinkirch, phd" <1130416+mvonsteinkirch@users.noreply.github.com> Date: Thu, 9 Feb 2023 19:39:39 -0800 Subject: [PATCH] Update dydx.md --- MEV_and_trading/protocols/dydx.md | 4 ++++ 1 file changed, 4 insertions(+) diff --git a/MEV_and_trading/protocols/dydx.md b/MEV_and_trading/protocols/dydx.md index 04b2a1e..e937ee3 100644 --- a/MEV_and_trading/protocols/dydx.md +++ b/MEV_and_trading/protocols/dydx.md @@ -9,6 +9,10 @@ * founded in 2017, dydx is the most popular dex for trading perps and utilizes a central limit orderbook model (rather amm). +* the oracle price is an aggregate price calculated using on-chain price oracles. collateralization and liquidations on dydx are determined using the oracle prices of each asset. +* the index price is an aggregate price based on price data from multiple exchanges and is used to trigger stop orders. +* the mid-market price is determined by the orderbook as tge midpoint or average between the lowest ask (sell price) and the highest bid (buy price). +* funding rate is the fee paid between longs and shorts for each perpetual market. longs pay shorts if the funding rate is positive and vice versa. * it on starkware's L2 (migrated from ethereum in 2021) and soon moving to their own standalone cosmos chain (dydx v4).