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dYdX Negotiates Software Sale As v3 Exchange Gets Compromised – Crypto News

Published

12 months ago

July 23, 2024

Dripp

In a double-edged turn of events, dYdX finds itself navigating both a security crisis and a potential business deal. The exchange’s v3 website has been compromised, triggering immediate safety warnings for users. Simultaneously, the company behind the platform, is reportedly in talks to sell its v3 software to a consortium of major crypto market makers.

dYdX v3 Security Breach and Software Sale Negotiations

dYdX, a prominent decentralized finance (DeFi) exchange, is currently facing two significant developments that have shaken the crypto community. First, the v3 website has been compromised, prompting urgent warnings to users. Simultaneously, the company behind the exchange is in talks to sell some of its derivatives trading software to a consortium of major crypto market makers.

The team has issued an alert stating that their v3 website exchange has been compromised. Users are strongly advised to avoid visiting the website or clicking any links until further notice. The team has emphasized that this issue does not affect the newer v4 platform.

In a separate but equally noteworthy development, the company behind the exchange, is reportedly negotiating the sale of its v3 software. According to anonymous sources, the potential buyers include prominent crypto market makers such as Wintermute Trading Ltd and Selini Capital. The financial advisory firm Perella Weinberg Partners is said to be facilitating the deal.

The v3 platform, despite being superseded by v4, remains attractive to traders due to its higher liquidity for certain tokens and reduced slippage on large transactions. In 2022, the v3 platform generated an estimated $137 million in fees from a trading volume of $466.3 billion.

This potential sale marks a rare instance of mergers and acquisitions in the DeFi space, where open-source software is the norm. As the situation develops, the crypto community eagerly awaits further updates on both the security compromise and the potential software sale.

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Previous Technical Challenges

The current security breach is not the first technical challenge faced by dYdX. In April, they experienced a significant outage that lasted over nine hours. This disruption was triggered by a scheduled upgrade to version 4 of the chain, which encountered unexpected complications.

The root cause of this earlier issue was traced to an incorrectly implemented bug fix from the Cosmos IAVL library. This error led to network state corruption during the upgrade process. Despite the severity of the halt, the team managed to resolve the issue and resume block production within hours, following the implementation of a software bug fix.

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