July 23, 2024

Exploring Strategic Alternatives for v3

dYdX
Exploring Strategic Alternatives for v3

Background:

As a reminder, the dYdX v3 exchange has an offshore matching engine supported by dYdX Trading. All funds and settlement on v3 occur on smart contracts controlled by tokenholder governance. Trading fees on v3 accrue to dYdX Trading.

By contrast, dYdX Chain is fully decentralized. All of the trading fees paid on dYdX Chain accrue to validators and DYDX stakers. All dYdX Chain code is open source.

What are we doing?

dYdX Trading is exploring strategic alternatives related to the v3 technology, which does not include the Ethereum smart contract or other technology governed by the utility token. Token holders would, of course, have to vote to approve any changes to the smart contracts that underly v3.

Why are we doing this?

dYdX Trading is all in on dYdX Chain. While v3 has been successful, we believe dYdX Chain better represents the vision of dYdX Trading Inc. and the ethos of DeFi, and we will be dedicating ourselves to the development of this software.

Considering strategic alternatives for the v3 technology is a way to clarify our focus to allow us to make dYdX Chain software as successful as possible.

What’s next?

We have some incredible things in store for the dYdX Chain software. Novel new liquidity mechanisms including an integration with our friends at Elixir, permissionless market listings, and new ways to trade, all coming in the next few months.

Check out our product roadmap here.

About dYdX and Terms

Here at dYdX, our mission is to democratize access to financial opportunity. We believe that v4 software will represent notable progress in service of that mission. The events in the global economy that have transpired over the last year have only reinforced the need for open, transparent, and permissionless financial products. We’re excited for v4 software to better meet those needs.

If building the future of a decentralized exchange and open finance is something you’re interested in, check out what it’s like to work at dYdX and our open roles!

To ask additional questions, join the discussion on Discord, participate in the dYdX community, or follow us on Twitter. We’re excited to continue building the dYdX Chain and will continue to release updates over the coming months.

Terms and Conditions: This post is subject to the dYdX Terms of Use.  The dYdX interface and products are not available to persons or entities who reside in, are located in, are incorporated in, or have registered offices in the United States or Canada ("Blocked Persons"), or other Restricted Persons (as defined in the dYdX Terms of Use). dYdX products and services are not intended for, and should not be used by, Blocked Persons or Restricted Persons. Terms of Use specific to v4 software can be found here.

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