diff --git a/protocol/app/upgrades.go b/protocol/app/upgrades.go
index df4bf3eb38..5172477265 100644
--- a/protocol/app/upgrades.go
+++ b/protocol/app/upgrades.go
@@ -3,7 +3,7 @@ package app
 import (
 	"fmt"
 
-	v7_0_0 "github.com/dydxprotocol/v4-chain/protocol/app/upgrades/v7.0.0"
+	v8_0_0 "github.com/dydxprotocol/v4-chain/protocol/app/upgrades/v8.0.0"
 
 	upgradetypes "cosmossdk.io/x/upgrade/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
@@ -14,7 +14,7 @@ var (
 	// `Upgrades` defines the upgrade handlers and store loaders for the application.
 	// New upgrades should be added to this slice after they are implemented.
 	Upgrades = []upgrades.Upgrade{
-		v7_0_0.Upgrade,
+		v8_0_0.Upgrade,
 	}
 	Forks = []upgrades.Fork{}
 )
@@ -22,16 +22,15 @@ var (
 // setupUpgradeHandlers registers the upgrade handlers to perform custom upgrade
 // logic and state migrations for software upgrades.
 func (app *App) setupUpgradeHandlers() {
-	if app.UpgradeKeeper.HasHandler(v7_0_0.UpgradeName) {
-		panic(fmt.Sprintf("Cannot register duplicate upgrade handler '%s'", v7_0_0.UpgradeName))
+	if app.UpgradeKeeper.HasHandler(v8_0_0.UpgradeName) {
+		panic(fmt.Sprintf("Cannot register duplicate upgrade handler '%s'", v8_0_0.UpgradeName))
 	}
 	app.UpgradeKeeper.SetUpgradeHandler(
-		v7_0_0.UpgradeName,
-		v7_0_0.CreateUpgradeHandler(
+		v8_0_0.UpgradeName,
+		v8_0_0.CreateUpgradeHandler(
 			app.ModuleManager,
 			app.configurator,
-			app.PricesKeeper,
-			app.VaultKeeper,
+			app.ListingKeeper,
 		),
 	)
 }
diff --git a/protocol/app/upgrades/v7.0.0/upgrade_container_test.go b/protocol/app/upgrades/v7.0.0/upgrade_container_test.go
deleted file mode 100644
index ccc0c79883..0000000000
--- a/protocol/app/upgrades/v7.0.0/upgrade_container_test.go
+++ /dev/null
@@ -1,184 +0,0 @@
-//go:build all || container_test
-
-package v_7_0_0_test
-
-import (
-	"math/big"
-	"testing"
-
-	"github.com/cosmos/gogoproto/proto"
-
-	v_7_0_0 "github.com/dydxprotocol/v4-chain/protocol/app/upgrades/v7.0.0"
-	"github.com/dydxprotocol/v4-chain/protocol/dtypes"
-	"github.com/dydxprotocol/v4-chain/protocol/testing/containertest"
-	"github.com/dydxprotocol/v4-chain/protocol/testutil/constants"
-	affiliatestypes "github.com/dydxprotocol/v4-chain/protocol/x/affiliates/types"
-	vaulttypes "github.com/dydxprotocol/v4-chain/protocol/x/vault/types"
-	"github.com/stretchr/testify/require"
-)
-
-const (
-	AliceBobBTCQuantums = 1_000_000
-	CarlDaveBTCQuantums = 2_000_000
-	CarlDaveETHQuantums = 4_000_000
-)
-
-func TestStateUpgrade(t *testing.T) {
-	testnet, err := containertest.NewTestnetWithPreupgradeGenesis()
-	require.NoError(t, err, "failed to create testnet - is docker daemon running?")
-	err = testnet.Start()
-	require.NoError(t, err)
-	defer testnet.MustCleanUp()
-	node := testnet.Nodes["alice"]
-	nodeAddress := constants.AliceAccAddress.String()
-
-	preUpgradeSetups(node, t)
-	preUpgradeChecks(node, t)
-
-	err = containertest.UpgradeTestnet(nodeAddress, t, node, v_7_0_0.UpgradeName)
-	require.NoError(t, err)
-
-	postUpgradeChecks(node, t)
-}
-
-func preUpgradeSetups(node *containertest.Node, t *testing.T) {}
-
-func preUpgradeChecks(node *containertest.Node, t *testing.T) {
-	// Add test for your upgrade handler logic below
-}
-
-func postUpgradeChecks(node *containertest.Node, t *testing.T) {
-	// Add test for your upgrade handler logic below
-	postUpgradeVaultParamsCheck(node, t)
-	postUpgradeMegavaultSharesCheck(node, t)
-
-	// Check that the affiliates module has been initialized with the default tiers.
-	postUpgradeAffiliatesModuleTiersCheck(node, t)
-}
-
-func postUpgradeVaultParamsCheck(node *containertest.Node, t *testing.T) {
-	// Check that a vault with quoting params is successfully migrated and the quoting params are
-	// successfully migrated to the vault params.
-	expectedQuotingParams := &vaulttypes.QuotingParams{
-		Layers:                           3,
-		SpreadMinPpm:                     1500,
-		SpreadBufferPpm:                  500,
-		SkewFactorPpm:                    1000000,
-		OrderSizePctPpm:                  50000,
-		OrderExpirationSeconds:           30,
-		ActivationThresholdQuoteQuantums: dtypes.NewIntFromUint64(500_000_000),
-	}
-
-	checkVaultParams(node, t, 0, vaulttypes.VaultStatus_VAULT_STATUS_QUOTING, expectedQuotingParams)
-
-	// Check that a vault without quoting params is successfully migrated and the quoting params are
-	// not set in the migrated vault params.
-	checkVaultParams(node, t, 1, vaulttypes.VaultStatus_VAULT_STATUS_QUOTING, nil)
-}
-
-func checkVaultParams(
-	node *containertest.Node,
-	t *testing.T,
-	vaultNumber uint32,
-	expectedStatus vaulttypes.VaultStatus,
-	expectedQuotingParams *vaulttypes.QuotingParams,
-) {
-	resp, err := containertest.Query(
-		node,
-		vaulttypes.NewQueryClient,
-		vaulttypes.QueryClient.VaultParams,
-		&vaulttypes.QueryVaultParamsRequest{
-			Type:   vaulttypes.VaultType_VAULT_TYPE_CLOB,
-			Number: vaultNumber,
-		},
-	)
-	require.NoError(t, err)
-	require.NotNil(t, resp)
-
-	vaultParamsResp := vaulttypes.QueryVaultParamsResponse{}
-	err = proto.UnmarshalText(resp.String(), &vaultParamsResp)
-	require.NoError(t, err)
-
-	require.Equal(t, expectedStatus, vaultParamsResp.VaultParams.Status)
-	require.Equal(t, expectedQuotingParams, vaultParamsResp.VaultParams.QuotingParams)
-}
-
-func postUpgradeMegavaultSharesCheck(node *containertest.Node, t *testing.T) {
-	// Alice equity = vault_0_equity * 1 + vault_1_equity * 1/3 + vault_2_equity * 123_456/556_677
-	// = 1_000 + 2_000 * 1/3 + 3_000 * 123_456/556_677
-	// ~= 2331.99
-	// Bob equity = vault_1_equity * 1/3 + vault_2_equity * 433_221/556_677
-	// = 2_000 * 1/3 + 3_000 * 433_221/556_677
-	// ~= 3001.35
-	// Carl equity = vault_1_equity * 1/3
-	// = 2_000 * 1/3
-	// ~= 666.67
-	// 1 USDC in equity should be granted 1 megavault share and round down to nearest integer.
-	expectedOwnerShares := map[string]*big.Int{
-		constants.AliceAccAddress.String(): big.NewInt(2_331),
-		constants.BobAccAddress.String():   big.NewInt(3_001),
-		constants.CarlAccAddress.String():  big.NewInt(666),
-	}
-	// 2331 + 3001 + 666 = 5998
-	expectedTotalShares := big.NewInt(5_998)
-
-	// Check MegaVault total shares.
-	resp, err := containertest.Query(
-		node,
-		vaulttypes.NewQueryClient,
-		vaulttypes.QueryClient.MegavaultTotalShares,
-		&vaulttypes.QueryMegavaultTotalSharesRequest{},
-	)
-	require.NoError(t, err)
-	require.NotNil(t, resp)
-
-	totalSharesResp := vaulttypes.QueryMegavaultTotalSharesResponse{}
-	err = proto.UnmarshalText(resp.String(), &totalSharesResp)
-	require.NoError(t, err)
-
-	require.Equal(
-		t,
-		expectedTotalShares,
-		totalSharesResp.TotalShares.NumShares.BigInt(),
-	)
-
-	// Check MegaVault owner shares.
-	resp, err = containertest.Query(
-		node,
-		vaulttypes.NewQueryClient,
-		vaulttypes.QueryClient.MegavaultAllOwnerShares,
-		&vaulttypes.QueryMegavaultAllOwnerSharesRequest{},
-	)
-	require.NoError(t, err)
-	require.NotNil(t, resp)
-
-	allOwnerSharesResp := vaulttypes.QueryMegavaultAllOwnerSharesResponse{}
-	err = proto.UnmarshalText(resp.String(), &allOwnerSharesResp)
-	require.NoError(t, err)
-
-	require.Len(t, allOwnerSharesResp.OwnerShares, 3)
-	gotOwnerShares := make(map[string]*big.Int)
-	for _, ownerShare := range allOwnerSharesResp.OwnerShares {
-		gotOwnerShares[ownerShare.Owner] = ownerShare.Shares.NumShares.BigInt()
-	}
-	for owner, expectedShares := range expectedOwnerShares {
-		require.Contains(t, gotOwnerShares, owner)
-		require.Equal(t, expectedShares, gotOwnerShares[owner])
-	}
-}
-
-func postUpgradeAffiliatesModuleTiersCheck(node *containertest.Node, t *testing.T) {
-	resp, err := containertest.Query(
-		node,
-		affiliatestypes.NewQueryClient,
-		affiliatestypes.QueryClient.AllAffiliateTiers,
-		&affiliatestypes.AllAffiliateTiersRequest{},
-	)
-	require.NoError(t, err)
-	require.NotNil(t, resp)
-
-	affiliateTiersResp := affiliatestypes.AllAffiliateTiersResponse{}
-	err = proto.UnmarshalText(resp.String(), &affiliateTiersResp)
-	require.NoError(t, err)
-	require.Equal(t, affiliatestypes.DefaultAffiliateTiers, affiliateTiersResp.Tiers)
-}
diff --git a/protocol/app/upgrades/v8.0.0/constants.go b/protocol/app/upgrades/v8.0.0/constants.go
new file mode 100644
index 0000000000..48f3e41292
--- /dev/null
+++ b/protocol/app/upgrades/v8.0.0/constants.go
@@ -0,0 +1,17 @@
+package v_8_0_0
+
+import (
+	store "cosmossdk.io/store/types"
+	"github.com/dydxprotocol/v4-chain/protocol/app/upgrades"
+)
+
+const (
+	UpgradeName = "v8.0.0"
+)
+
+var Upgrade = upgrades.Upgrade{
+	UpgradeName: UpgradeName,
+	StoreUpgrades: store.StoreUpgrades{
+		Added: []string{},
+	},
+}
diff --git a/protocol/app/upgrades/v8.0.0/upgrade.go b/protocol/app/upgrades/v8.0.0/upgrade.go
new file mode 100644
index 0000000000..f8e20a8e12
--- /dev/null
+++ b/protocol/app/upgrades/v8.0.0/upgrade.go
@@ -0,0 +1,46 @@
+package v_8_0_0
+
+import (
+	"context"
+	"fmt"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	listingtypes "github.com/dydxprotocol/v4-chain/protocol/x/listing/types"
+
+	upgradetypes "cosmossdk.io/x/upgrade/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	"github.com/dydxprotocol/v4-chain/protocol/lib"
+	listingkeeper "github.com/dydxprotocol/v4-chain/protocol/x/listing/keeper"
+)
+
+func initListingModuleState(ctx sdk.Context, listingKeeper listingkeeper.Keeper) {
+	// Set hard cap on listed markets
+	err := listingKeeper.SetMarketsHardCap(ctx, 500)
+	if err != nil {
+		panic(fmt.Sprintf("failed to set markets hard cap: %s", err))
+	}
+
+	// Set listing vault deposit params
+	err = listingKeeper.SetListingVaultDepositParams(
+		ctx,
+		listingtypes.DefaultParams(),
+	)
+	if err != nil {
+		panic(fmt.Sprintf("failed to set listing vault deposit params: %s", err))
+	}
+}
+
+func CreateUpgradeHandler(
+	mm *module.Manager,
+	configurator module.Configurator,
+	listingKeeper listingkeeper.Keeper,
+) upgradetypes.UpgradeHandler {
+	return func(ctx context.Context, plan upgradetypes.Plan, vm module.VersionMap) (module.VersionMap, error) {
+		sdkCtx := lib.UnwrapSDKContext(ctx, "app/upgrades")
+		sdkCtx.Logger().Info(fmt.Sprintf("Running %s Upgrade...", UpgradeName))
+
+		initListingModuleState(sdkCtx, listingKeeper)
+
+		return mm.RunMigrations(ctx, configurator, vm)
+	}
+}
diff --git a/protocol/app/upgrades/v8.0.0/upgrade_container_test.go b/protocol/app/upgrades/v8.0.0/upgrade_container_test.go
new file mode 100644
index 0000000000..3526dbf25d
--- /dev/null
+++ b/protocol/app/upgrades/v8.0.0/upgrade_container_test.go
@@ -0,0 +1,82 @@
+//go:build all || container_test
+
+package v_8_0_0_test
+
+import (
+	"testing"
+
+	v_8_0_0 "github.com/dydxprotocol/v4-chain/protocol/app/upgrades/v8.0.0"
+	listingtypes "github.com/dydxprotocol/v4-chain/protocol/x/listing/types"
+
+	"github.com/cosmos/gogoproto/proto"
+
+	"github.com/dydxprotocol/v4-chain/protocol/testing/containertest"
+	"github.com/dydxprotocol/v4-chain/protocol/testutil/constants"
+	"github.com/stretchr/testify/require"
+)
+
+const (
+	AliceBobBTCQuantums = 1_000_000
+	CarlDaveBTCQuantums = 2_000_000
+	CarlDaveETHQuantums = 4_000_000
+)
+
+func TestStateUpgrade(t *testing.T) {
+	testnet, err := containertest.NewTestnetWithPreupgradeGenesis()
+	require.NoError(t, err, "failed to create testnet - is docker daemon running?")
+	err = testnet.Start()
+	require.NoError(t, err)
+	defer testnet.MustCleanUp()
+	node := testnet.Nodes["alice"]
+	nodeAddress := constants.AliceAccAddress.String()
+
+	preUpgradeSetups(node, t)
+	preUpgradeChecks(node, t)
+
+	err = containertest.UpgradeTestnet(nodeAddress, t, node, v_8_0_0.UpgradeName)
+	require.NoError(t, err)
+
+	postUpgradeChecks(node, t)
+}
+
+func preUpgradeSetups(node *containertest.Node, t *testing.T) {}
+
+func preUpgradeChecks(node *containertest.Node, t *testing.T) {
+	// Add test for your upgrade handler logic below
+}
+
+func postUpgradeChecks(node *containertest.Node, t *testing.T) {
+	// Add test for your upgrade handler logic below
+	postUpgradeListingModuleStateCheck(node, t)
+}
+
+func postUpgradeListingModuleStateCheck(node *containertest.Node, t *testing.T) {
+	// Check that the listing module state has been initialized with the hard cap and default deposit params.
+	resp, err := containertest.Query(
+		node,
+		listingtypes.NewQueryClient,
+		listingtypes.QueryClient.ListingVaultDepositParams,
+		&listingtypes.QueryListingVaultDepositParams{},
+	)
+	require.NoError(t, err)
+	require.NotNil(t, resp)
+
+	listingVaultDepositParamsResp := listingtypes.QueryListingVaultDepositParamsResponse{}
+	err = proto.UnmarshalText(resp.String(), &listingVaultDepositParamsResp)
+	require.NoError(t, err)
+	require.Equal(t, listingtypes.DefaultParams(), listingVaultDepositParamsResp.Params)
+
+	resp, err = containertest.Query(
+		node,
+		listingtypes.NewQueryClient,
+		listingtypes.QueryClient.MarketsHardCap,
+		&listingtypes.QueryMarketsHardCap{},
+	)
+	require.NoError(t, err)
+	require.NotNil(t, resp)
+
+	marketsHardCapResp := listingtypes.QueryMarketsHardCapResponse{}
+	err = proto.UnmarshalText(resp.String(), &marketsHardCapResp)
+	require.NoError(t, err)
+	require.Equal(t, uint32(500), marketsHardCapResp.HardCap)
+}