dYdX Trading Inc. to Discontinue v3 Product, Redirect Focus to dYdX Chain Development
In a strategic shift aimed at reinforcing its stance in decentralized finance, dYdX Trading Inc. has announced the sunset of its v3 product in order to concentrate on its newest initiative, the dYdX Chain software.
Transitioning to dYdX Chain
Founded in 2017, dYdX Trading Inc. has been a trailblazer in the domain of perpetual markets trading. Its v3 product has been a cornerstone in the Ethereum space, facilitating over $1 trillion in trading volume. However, with the release of the dYdX Chain (v4) in 2023, the company introduced a significant overhaul. This new infrastructure has brought forward a fully open-source, high-performance, and decentralized appchain. The dYdX Chain supports unlimited market listings, accelerated transaction times, and enhanced decentralization.
Already recording over $220 billion in trading volume, the dYdX Chain is gearing up for its next major release, dYdX Unlimited, slated to launch this autumn. In light of this, dYdX Trading will retire its v3 product to allocate all resources towards further developing the dYdX Chain.
Impact on Users
The discontinuation of the dYdX v3 product will have direct implications for its users. Trading on the platform will continue up to October 28, 2024. Users are advised to close their positions and withdraw any stored USDC from dYdX v3. On October 28 at 12:05 P.M. UTC, all trading activities, oracle-price updates, and funding payments will cease. Subsequently, on October 30, the Ethereum smart contract will label the Layer 2 (L2) exchange as “frozen.” From that point onwards, no further balance updates will occur, but users will still be able to withdraw their USDC, reflecting the value of open positions based on oracle prices at the time trading ceases.
dYdX Trading underscores its commitment to never custody user funds. All account states and funds remain on the Ethereum smart contract, ensuring users’ independence in withdrawing their USDC without reliance on dYdX Trading or any other entity. To support users post-shutdown, dYdX Trading plans to provide read-only historical data via API for at least one year following the cessation of v3.
Looking Ahead for dYdX
This pivot towards prioritising the dYdX Chain aims to bolster the platform’s standing as a premier DeFi trading venue. Users can look forward to the imminent launch of dYdX Unlimited, which promises a superior trading experience within the web3 ecosystem.
For those ready to delve into trading on the dYdX Chain, helpful resources and guides are already accessible, with continuous updates being disseminated through dYdX’s blog, Twitter, and Discord channels.
Frequently Asked Questions
Does this affect dYdX Chain (v4)?
- There is no impact on dYdX Chain.
What does this mean for the token?
- The functionality of any governance token remains unaffected. More details are available on the dYdX Foundation website.
What will happen to my open positions on dYdX v3?
- Open positions will be settled in USDC value based on current oracle prices, with the corresponding USDC amount available for withdrawal from the Ethereum smart contract.
What actions do v3 users need to take?
- Users should prepare to wind down positions and withdraw their USDC. The USDC held on the smart contract will remain withdrawable indefinitely, facilitated by L2Beat, an independent third-party monitor.
Can dYdX Trading unilaterally shut down dYdX v3?
- While dYdX Trading is ceasing its activities related to v3, certain functionalities will persist. The v3 smart contracts are governed by governance and cannot be changed unilaterally by dYdX Trading or any other party.
What support is being sunsetted?
- dYdX Trading will no longer process certain trade information for v3, effectively ending trading activity on the platform.
With this transition, dYdX Trading Inc. reaffirms its commitment to advancing decentralized finance through continuous innovation and development on its newer blockchain infrastructure.
Source: Noah Wire Services