Since 2017, dYdX Trading Inc. has been a pioneer in perpetual markets trading, pushing the boundaries of innovation with each upgrade. In just a few years, v3 supported over $1 trillion in trading volume and continues to act as a model for projects building in the Ethereum space. The release of dYdX Chain (v4) in 2023 marked our commitment to building forward looking tech–a fully open-source, performant, and decentralized appchain. dYdX Chain allows us to build software that enables what v3 could not–unlimited market listings, faster transaction times, true decentralization, and so much more. With over $220B in trading volume on dYdX Chain already, we're on the cusp of our most exciting chapter yet: dYdX Unlimited, launching this fall!
As we gear up for this game-changing launch, we're channeling all our resources and innovation into making dYdX truly exceptional. As a result, we will be sunsetting our support for v3 to pave a future for dYdX that is truly Unlimited.
What does this mean for users?
This change only affects users of dYdX v3. Users of dYdX Chain, dydx.trade or the v4 API are unaffected by this change.
From now until October 28th, 2024, the exchange will operate as-normal. Trading will remain uninterrupted but we encourage users to make a plan for winding down positions and withdrawing their USDC from dYdX v3.
All trading, oracle-price updates, and funding payments are planned to halt on October 28th at 12:05 P.M. UTC.
Two days later, on October 30th, the Ethereum smart contract will register the L2 exchange as “frozen,” meaning that the exchange will not be able to make any further balance updates, and that users can withdraw the full USDC value of their accounts, which includes the value of their open positions, which are valued at the oracle prices at the time when the trading halted. No trading fees, liquidation fees, or other fees are incurred to users during this time. However, users will incur gas fees when sending Ethereum transactions to withdraw their USDC from the smart contract.
As a reminder–dYdX Trading does not and will never custody your funds. The state of all accounts and all funds is stored on the Ethereum smart contract, thus the ability to withdraw USDC from the smart contract remains available without need for reliance on dYdX Trading or any other party.
dYdX Trading plans to host read-only historical data via API for at least 1 year after the shut-down date.
In the unanticipated case that liquidity on the exchange is ever insufficient for users to effectively trade, the date and time may be moved earlier.
Looking forward
We’re confident that intensifying our efforts on dYdX Chain will further strengthen its position as DeFi’s pro trading platform. The upcoming launch of dYdX Unlimited will offer users a world class trading experience not found anywhere else in web3 and we are so excited to build and iterate on this vision. Ready to start trading on dYdX Chain? Check out this guide and follow along for more updates on what’s coming this Fall on our blog, Twitter, or Discord.
FAQ
Does this affect dYdX Chain (v4)?
There will be no effect on dYdX Chain.
What does this mean for the token?
dYdX Trading’s decision to wind down its own activities related to v3 does not directly affect the functionality of any governance token. Information about dYdX v3 governance can be found on the dYdX Foundation website.
What will happen to my open positions on dYdX v3?
If you leave positions open, your positions will be settled for their USDC value based on then-current oracle prices, and the corresponding USDC amount will be available for you to withdraw from the Ethereum smart contract.
What actions do v3 users need to take?
We encourage users to make a plan for winding down positions and withdrawing their USDC from the dYdX v3 smart contract.
USDC held on the smart contract will remain available to withdraw indefinitely, after dYdX winds down its user interface, this functionality will be supported by L2Beat, an independent third party that provides block explorers and services related to Layer 2 activity.
Can dYdX Trading unilaterally shut down dYdX v3?
dYdX Trading is winding down its own activities related to dYdX v3, and certain functionality will remain. For example, the v3 smart contracts are controlled by governance, and neither dYdX Trading nor any other party can unilaterally modify the v3 smart contracts or access user funds. Information about dYdX v3 governance can be found at the bottom of this page.
What support is being sunsetted?
v3 is a fully non-custodial protocol for which dYdX Trading has historically processed certain trade information. dYdX Trading will be sunsetting that support, which will sunset trading activity.
Update: Post-sunset, the v3 interface remains available here and users may use the Escape Hatch link to use the withdraw functionality supported by L2Beat.