dYdX Ends v3, Shifts Focus to Developing dYdX Chain

dYdX Trading Inc. recently announced the discontinuation of its v3 product to prioritize the development of the dYdX Chain (v4), as reported by dYdX. This strategic move is designed to boost the platform’s functionality and reinforce its standing in the decentralized finance (DeFi) landscape.

Transition to dYdX Chain

Since its launch in 2017, dYdX Trading Inc. has been at the forefront of perpetual markets trading. The v3 product has facilitated over $1 trillion in trading volume and has been a significant influence in the Ethereum ecosystem. The introduction of dYdX Chain in 2023 represented a major leap forward, presenting a fully open-source, efficient, and decentralized appchain. This new system supports unlimited market listings, quicker transaction speeds, and authentic decentralization.

With trading volume exceeding $220 billion on the dYdX Chain already, the platform is gearing up for its next significant release: dYdX Unlimited, scheduled for this fall. In order to concentrate on this new phase, dYdX Trading will retire the v3 product and refocus all resources on the dYdX Chain.

User Impact

This shift will influence users of the dYdX v3 platform. Trading will proceed as normal until October 28, 2024. Users are advised to begin closing their positions and withdrawing their USDC from dYdX v3. All trading activities, oracle-price updates, and funding payments will cease on October 28 at 12:05 P.M. UTC. Following this, on October 30, the Ethereum smart contract will designate the L2 exchange as “frozen,” preventing any further balance updates and permitting users to withdraw their USDC, including the equivalent of open positions calculated based on oracle prices at the time trading stops.

dYdX Trading underscores that it does not and will not manage user funds. All account details and funds are secured on the Ethereum smart contract, guaranteeing that users can withdraw their USDC without dependence on dYdX Trading or any third parties. The company aims to keep read-only historical data accessible via API for at least one year after the termination date.

The Future of dYdX

The emphasis on the dYdX Chain is regarded as a positive step in bolstering the platform’s status as a premier DeFi trading site. The forthcoming launch of dYdX Unlimited is expected to offer a top-tier trading experience that is unmatched in the web3 arena.

For users eager to engage with the dYdX Chain, resources and guides are provided, and updates will continue to be communicated through the dYdX blog, Twitter, and Discord channels.

Frequently Asked Questions

Will this affect dYdX Chain (v4)?

No impact will be observed on dYdX Chain.

What implications does this have for the token?

The decision to sunset v3 does not directly influence the operation of any governance token. Further details may be found on the dYdX Foundation website.

What will happen to my open positions on dYdX v3?

Open positions will be liquidated for their USDC value based on existing oracle prices, and the respective USDC amount will be available for withdrawal from the Ethereum smart contract.

What steps do v3 users need to take?

Users are urged to prepare for closing their positions and withdrawing their USDC from the dYdX v3 smart contract. USDC held within the smart contract will remain available for withdrawal indefinitely, supported by L2Beat, a third-party entity.

Can dYdX Trading unilaterally deactivate dYdX v3?

dYdX Trading is winding down its involvement with dYdX v3, but certain functionalities will persist. The v3 smart contracts are governed by governance protocols and cannot be unilaterally altered by dYdX Trading or any other party.

What support will end?

dYdX Trading will stop processing specific trade information for v3, thereby ceasing trading activities on the platform.

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