dYdX early market makers initiated a proposal for a "seed insurance fund," suggesting to transfer nearly 360,000 DYDX to Wintermute

ChainCatcher message, dYdX early market maker e4 submitted a "seed insurance fund" proposal to the community, which suggests transferring 359,697 DYDX from the community treasury to Wintermute in exchange for approximately 1 million USDC as seed funding for the insurance fund.

To maintain the solvency of the dYdX Chain trading system, the insurance fund is used as the first line of defense when an account has a negative balance. The account will be liquidated, and the insurance fund will cover any losses. The insurance fund will be used before deleveraging. Since its launch on November 28, the insurance fund has a scale of 3,997.49 USDC. With a daily trading volume of 260 million USD, traders on the dYdX Chain may benefit from the insurance fund. Therefore, Wintermute expressed interest in injecting approximately 1 million USDC into the insurance fund using the mid-price of ETHDYDX on Binance minus a 10% discount.