dYdX Urges Migration Of 52M ethDYDX Tokens Ahead Of Final Bridge Shutdown Proposal
In Brief
dYdX announced that over 52 million ethDYDX tokens remain unmigrated to the native dYdX Chain, with a final on-chain proposal set for June 9 to end bridge support, urging users to migrate promptly to avoid complications.
Decentralized exchange (DEX) dYdX announced that over 52 million ethDYDX tokens have yet to be migrated to the native DYDX on the dYdX Chain.
A community vote previously approved the migration plan with approximately 91% support, and a final on-chain proposal is scheduled for June 9th to formally end support for the Ethereum-to-dYdX Chain bridge. Users have been advised to complete the migration process promptly to prevent potential complications.
The proposal highlights that a large portion of ethDYDX remains on Ethereum, which raises concerns about its continued role in the overall token structure. This issue is viewed as relevant to achieving long-term strategic alignment for the dYdX Chain. The recommendation includes discontinuing the wethDYDX smart contract—referred to as the Bridge—due to several considerations.
The parallel existence of ethDYDX and native DYDX tokens has resulted in fragmented liquidity, which has complicated trading conditions. It is noted that around 52% of the unbridged tokens are currently held on centralized exchanges. This division is also affecting staking and governance engagement on the dYdX Chain.
Ending support for the Bridge could simplify the token structure, reduce reliance on Ethereum-based infrastructure, and minimize risks of outages or maintenance issues associated with the Bridge. Additionally, the removal of unbridged tokens from active circulation might help offset token sales and reduce inflationary pressures on the DYDX token.
How To Migrate ethDYDX Tokens To dYdX Chain
Migrating ethDYDX tokens from Ethereum to the dYdX Chain enables token holders to engage in staking and participate in governance activities on the dYdX Chain, contributing to the network’s operational framework and decision-making processes.
The migration process can be initiated by accessing the official bridge interface at bridge.dydx.trade. Users are required to specify the amount of ethDYDX they intend to migrate, designate a recipient address on the dYdX Chain, review the migration summary, authorize the interaction with the wethDYDX smart contract, confirm the transaction by signing with their connected wallet, and monitor the migration status through the platform.
dYdX operates as a DEX focused on perpetual futures, margin trading, and derivatives for digital assets. It integrates advanced trading functionalities with a non-custodial structure supported by decentralized finance mechanisms.
Its dYdX Chain functions as an independent Layer 1 blockchain. It has been specifically developed for the dYdX trading protocol and utilizes the Cosmos SDK along with CometBFT (formerly Tendermint) to deliver a fully decentralized infrastructure optimized for performance and scalability.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, 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 crypto, AI, 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.
