dYdX Reminds Users To Withdraw USDC From Smart Contract Ahead Of V3 Sunset On October 28
In Brief
dYdX announced that all trading, oracle price updates, and funding payments on dYdX V3 will be suspended at 12:05 PM UTC on October 28th.
Decentralized exchange (DEX) dYdX announced that all trading, oracle price updates, and funding payments on dYdX V3 will be suspended at 12:05 PM UTC on October 28th. Users are advised to prepare for this change by winding down their positions and withdrawing USDC from the smart contract.
This update affects only dYdX V3 users. Those using dYdX Chain, dydx.trade, or the V4 API will not be impacted. The exchange will continue its operations until October 28th, with trading remaining uninterrupted.
On October 30th, the Ethereum smart contract will officially “freeze” the Layer 2 exchange. This means that no further balance updates will be possible, although users will still be able to withdraw the full USDC value of their accounts. This encompasses the value of any open positions, which will be valued according to oracle prices at the time trading ceases. Over the course of this period, users will not incur any trading, liquidation, or other fees; however, gas fees may apply for Ethereum transactions needed to withdraw USDC from the smart contract.
Notably, dYdX Trading does not and will not hold custody of user funds. All account states and funds are stored on Ethereum. Therefore, the ability to withdraw USDC remains without reliance on dYdX Trading. Furthermore, dYdX Trading will provide read-only historical data via API for at least twelve months after the shutdown.
dYdX Switches To dYdX Chain Due To Its Advanced Capabilities
dYdX functions as an exchange specifically designed for trading perpetual futures. Until recently, it provided users with two offerings: dYdX Chain and dYdX V3. Since its inception in 2017, dYdX Trading has been at the forefront of perpetual markets, consistently innovating with each platform upgrade. Within just a few years, the V3 version facilitated over $1 trillion in trading volume and continues to serve as a benchmark for other projects within the Ethereum ecosystem.
dYdX launched dYdX Chain (V4) last year, which enables the platform to develop software that supports unlimited market listings, faster transaction times, and decentralization, among other features. Recently, dYdX upgraded dYdX Chain to version 5.1.0, which includes performance improvements, Slinky updates, and enhancements to the Vault user experience.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
