Timothy Morano
May 16, 2025 08:38
DYDX introduces isolated markets and isolated margins in the latest software updates to expand market options and improve traders’ risk management.
DYDX, a leading distributed trading platform, announced that it introduced isolated markets and isolated margins in the upcoming software release version 5.0. This update aims to improve trading flexibility and expand the market range available on the platform.
Isolated market and margin
The new isolated market can support a wider range of markets with a variety of risk profiles, featuring separate mortgage grass and individual insurance funds. Unlike the existing cross -crossing market where all markets share the same collateral pool, the isolated market has its own hazardous real estate, so safe support for various market types is possible.
With this update, DYDX plans to expand its market widget to more than 800 potential markets in about 20 current markets. This expansion includes markets of one distributed exchange that meets at least two central exchanges or meets specific liquidity and market cap criteria.
Implementation and user benefits
Traders will benefit from the introduction of isolated margins, which can lead to collateral by position. This feature provides greater control and predictions on collateral requirements because the trader can adjust the collateral for a specific location without affecting others. Previously, all positions were cross -supplied, making it more difficult to manage.
This update will also allow the market proposal through governance, along with a future transition plan to the unlicensed market listing process. This change is expected to facilitate the listing immediately without governance approval.
Future development
In addition to the initial integration with Raydium for the decentralized exchange price query, DYDX plans to further grow market query that can be used by integrating additional oracle sources such as Uniswap V3.
The separated margin function uses the lower calculation function within the protocol to transfer the collateral from the merchant’s cross sub account to the isolated sub -account. This system allows collateral to be managed efficiently in other market locations.
Overall, these developments have been set to provide DYDX traders with more tools and options that can effectively manage trading activities and expand the market range that can be accessible from the platform.
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