Looking to earn passive yield on dYdX? MegaVault offers a seamless way to put your USDC to work while supporting market liquidity. In this guide, we’ll walk you through everything you need to know about MegaVault—how it works, where the yield comes from, and how to deposit your funds with just a few clicks.
What is dYdX?
As the largest DEX for perpetual trading, dYdX enables users to go long or short on a variety of cryptos with up to 100x leverage. But beyond trading, the platform allows users to earn yield through MegaVault, which captures a share of trading fees and market funding payments from traders and rewards liquidity providers for supporting the ecosystem.
What is dYdX MegaVault?
MegaVault is a core liquidity solution within dYdX, designed to offer users a seamless and passive way to earn yield while providing liquidity to decentralized markets.
When users deposit USDC, the funds are automatically deployed across dYdX’s markets through advanced market-making strategies, ensuring optimal liquidity, even for newly listed assets.
By aggregating liquidity, MegaVault enhances market efficiency while providing depositors with a fully automated and passive income stream. Whether you're a trader benefiting from improved market conditions or a depositor earning yield effortlessly, MegaVault is a key pillar of the evolving dYdX ecosystem.
Set Up dYdX and Deposit Funds
Before you can deposit funds into MegaVault, you must connect your wallet and deposit funds as collateral on dYdX. Luckily, we've got a tutorial to guide you through it: How to Set Up dYdX and Deposit Funds
How to Deposit Funds into dYdX MegaVault
- First, visit the MegaVault page
- Enter the amount you wish to deposit and click on "Review"
- Check the MegaVault Terms box and click on "Confirm"
✅ Your funds are now deposited into the MegaVault. Enjoy the APR!
Where does dYdX MegaVault yield come from?
MegaVault yield is generated from multiple sources, including profit and loss from vault positions, funding rate payments, trading fee revenue shares, and other incentives proposed by the dYdX community.
Can I withdraw my funds from MegaVault anytime?
Yes, you can withdraw your funds at any time. Simply visit the MegaVault page, select your withdrawal amount, and confirm the transaction. Keep in mind that withdrawal times may vary depending on market conditions.
Does MegaVault charge any fees?
MegaVault does not charge direct fees, but your earnings are derived from market funding payments and a share of trading fees. The exact yield depends on trading activity and liquidity demand on the platform.
Who controls my funds in MegaVault?
You do. Your funds remain under your control through your wallet’s private keys. While MegaVault automatically deploys your USDC into market-making strategies, only you can withdraw your funds at any time.
When I deposit into MegaVault, where do the funds come from?
The funds you deposit into MegaVault come from your cross-margined balance. If you have open cross-margin positions, adding funds to MegaVault will increase your cross-margin usage.
Is there any risk involved in using MegaVault?
As with any DeFi platform, there are risks, including smart contract vulnerabilities and market fluctuations. However, dYdX implements robust security measures to mitigate risks and ensure optimal liquidity management.
