- Shutdown of dYdX v3 Platform
- Important Notice for Users on Withdrawing Funds
- dYdX Trading's Priorities and Plans
dYdX Trading Inc., a pioneer in perpetual markets, announced plans to discontinue the dYdX v3 platform by the end of October.
Shutdown of dYdX v3 Platform
According to a post on X, the shutdown of the v3 platform will pave the way for the launch of dYdX Unlimited this fall. The sunset of the v3 platform will primarily affect users of dYdX v3, but users of dYdX Chain, dydx.trade, or the v4 API will remain unaffected.
Important Notice for Users on Withdrawing Funds
dYdX urges users to withdraw their USDC before the transition date. The company stated that the deactivation is consistent with their objective of “truly unlimited” decentralized trading. From now until the mentioned date, dYdX v3 will continue to operate normally, with uninterrupted trading. However, users are encouraged to wind down their positions and withdraw their USDC from the platform. Trading, oracle-price updates, and funding payments are scheduled to cease on October 28 at 12:05 P.M. UTC. Two days after the dYdX v3 platform is shut down, the Ethereum smart contract will register the L2 exchange as “frozen,” enabling users to withdraw the full USDC value of their accounts without incurring any trading or liquidation fees, aside from gas fees associated with Ethereum transactions.
dYdX Trading's Priorities and Plans
dYdX Trading emphasizes that they will never custody user funds. All user accounts and their funds are securely held within the Ethereum smart contract system, allowing users to withdraw their funds without relying on dYdX Trading or any other third-party entity. The company intends to keep access to read-only historical data through API for a minimum of one year after the shutdown date to ensure users can still view past trading details. The dYdX v3 platform, which received significant startup funding from organizations like Andreessen Horowitz and Paradigm, was highly popular among investors due to its high liquidity and reduced slippage on larger trades. VanEck’s March 2023 report projected the platform earned $137 million in fees at the end of 2022. Its operator has already chosen to retire the platform in favor of a more modern successor. In July, speculations surfaced that dYdX Trading was considering selling the decentralized exchange platform. Wintermute Trading and Selini Capital are among the potential bidders, while Perella Weinberg Partners is advising dYdX Trading on the transaction.
In summary, dYdX v3 users need to prepare for the upcoming changes and withdraw their funds. The company continues to focus on improving decentralized trading conditions and plans to launch the new dYdX Unlimited platform.
