On Tuesday, July 23, the team at decentralized exchange (DEX) dYdX reported that the website of one of its trading platforms had been hacked. The attack did not affect traders' funds.
Unknown individuals hacked the dydx.exchange website, which is used by the v3 trading platform. At the time of publication, the dYdX team has already restored the site.
Details of the incident
According to the developers' statements, it was the v3 site, an older version of the platform, that was affected by the hack. The weekly volume of derivatives trading on this platform is about $1.5 billion.
All traders' funds, as well as the v4 platform (dydx.trade), remain safe. The attackers only attacked the v3 domain, not the smart contracts. On this domain, the hackers deployed a fake website to steal cryptocurrency when connecting wallets.
A few hours later, the dYdX team restored access to v3. The developers advised users to clear their cache and restart their browser. They also warned that cryptocurrency wallet extensions such as Metamask and Phantom may still show warnings when navigating to the site.
Future plans
The incident occurred shortly after Bloomberg reported that the dYdX v3 platform was up for sale. Large market makers including Wintermute and Selini Capital want to buy part of the derivatives trading software.
According to Gauntlet, v3 remains popular among traders due to its high liquidity and minimal slippage on large transactions. In 2022, the platform generated $137 million in commissions.
More information
Following the hack, the dYdX team issued a statement indicating that they were looking for a “strategic alternative” for the v3 technology. Representatives from dYdX emphasized their full commitment to the development of the v4 version, which they switched to earlier this year.
The cryptocurrency exchange team noted that despite the success of v3, dYdX Chain is better aligned with the company's vision and the spirit of DeFi. They will focus on the development of this software.
The developers also said that there will be “several exciting new features” for dYdX Chain in the near future. Plans include the introduction of new liquidity mechanisms, integration with Elixir, the ability to list without authorization, and new trading features that will be available within a few months.
