DYdX, a leading DeFi platform, is in talks to sell a segment of its derivatives trading software for an unspecified amount.
Potential Buyers
Bloomberg reported that potential buyers could include major cryptocurrency market makers. Among them are Wintermute Trading and Selini Capital. Perella Weinberg Partners is advising DYdX on the sale.
No Comment from DYdX
DYdX did not respond to Cryptonews’ request for comment by the publication time. However, in a recent post on X, the platform indicated it is considering new options for its V3 technology. These options would not involve the current Ethereum smart contracts or the DYdX token.
Token Holders’ Involvement
DYdX token holders will still have the opportunity to vote on any changes made to the core V3 smart contracts.
Strategic Alternatives
“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,” the platform stated.
Challenges in DeFi Mergers
DeFi’s open-source nature complicates traditional mergers and acquisitions. Since most DeFi projects rely on publicly available code, anyone can replicate and modify it, making full takeovers less common.
Transition to v4 Format and New Blockchain
Founded in 2017, DYdX offers perpetual trading options for cryptocurrencies like Bitcoin, Ethereum, Dogecoin, and Cardano. Initially on the Ethereum blockchain, DYdX moved to its Cosmos-based DYdX Chain in October 2023.
This change raised concerns about whether the platform would achieve the same adoption level as on Ethereum. Alongside the launch of its blockchain, DYdX switched to its v4 format. As of December 2023, it surpassed $1 trillion in trading volume and is rapidly growing its user base.
Earlier this year, DYdX overtook Uniswap to become the largest decentralized crypto exchange by trading volume.
v3 Website Compromise
On Tuesday, DYdX announced on X that its v3 website had been compromised. Users were warned not to click on any links. The exchange clarified that the issue does not affect the v4 platform. The website has since been restored.
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