dYdX USDC MM Vault

Summary

Ticker: dYdXUSDC Primary Liquidy Venue: dYdX Hedging venue(s): Lighter, Defx Underlying product: Two sided liquidity provisioning vault Base asset: USDC Vault type: Active market making vault

Short description

A tokenised vault for USDC that provides active two-sided liquidity on dYdX, giving depositors automated access to market making returns in a single composable asset with professional risk management and active hedging.

Description

Unlike passive LP vaults, this strategy is active market making on dYdX. Axtior runs a two-sided quoting strategy designed to capture sustainable spread and any applicable maker programs on the venue.

The vault may hold inventory risk as part of normal market making. To keep risk within a defined envelope, Axtior may actively hedge exposures on Lighter and Defx.

Because dYdXUSDC is a standard ERC-20, it can be transferred, used as collateral (where supported), or integrated across DeFi while continuing to track the performance of the vault’s active MM strategy.

1. How the Vault Works

1.1 Deposits and Shares

• You deposit USDC into the dYdX USDC MM Vault.

• The vault mints dYdXUSDC to your address.

• The number of dYdXUSDC you receive represents your pro-rata claim on the vault’s assets and PnL.

• Over time, the value of 1 dYdXUSDC (in USDC terms) floats based on the net performance of the active MM strategy (after vault fees).

1.2 Active Two-Sided Market Making

The vault deploys capital to support two-sided quoting on dYdX

The strategy may adjust:

• Quote width and depth

• Inventory targets

• Participation in venue-specific incentive programs

Primary return drivers typically include:

• Spread capture

• Maker rebates (if applicable)

• Venue incentives (if active)

1.3 Hedging & Inventory Management

To manage directional and inventory risk, Axtior may hedge on:

• Lighter

• Defx

1.4 Rebalancing & Risk Controls

Axtior monitors:

• Inventory skew and turnover

• Fill quality and adverse selection

• Volatility and regime shifts

• dYdX uptime, performance, and operational risk

• Hedge efficiency and basis risk

Within the defined risk envelope, the curator may:

• Reduce or pause quoting on dYdX

• Tighten risk limits during high volatility

• Maintain liquidity buffers (where applicable)

2. Yield Model

The vault’s return profile is driven primarily by:

• Market making PnL: net spread capture after execution costs

• Rebates & incentives: where offered by dYdX

• Risk management quality: inventory control and hedge efficiency

The dYdXUSDC share price reflects net performance after:

• Venue-level fees and execution costs

• Hedging impacts

• Strategy-level fees defined for the vault

3. Who Is This Vault For?

This vault is designed for:

• USDC holders who want professional, dYdX-specific active MM exposure in a single ERC-20.

• DAOs and treasuries seeking orderbook yield with managed risk.

• Integrators building structured products referencing active trading yield strategies.

You should be comfortable with:

• The possibility of inventory-driven drawdowns

• dYdX venue and operational risk

• The curator’s discretionary execution and hedging decisions

• Periods of negative performance

4. How to Interact

4.1 Depositing

• Choose the dYdX USDC MM Vault in the interface.

• Approve the vault to spend your USDC.

• Deposit USDC and receive dYdXUSDC.

4.2 Holding & Using dYdXUSDC

While you hold dYdXUSDC:

• Your exposure tracks Axtior’s actively managed MM strategy on dYdX.

• You can transfer dYdXUSDC, use it as collateral where supported, or integrate it into other DeFi strategies.

4.3 Redeeming

• Initiate redemption of dYdXUSDC for USDC.

• The vault scales down pro-rata dYdX exposure as needed (subject to venue mechanics).

• You receive USDC based on your share of the vault assets at that point in time.