New dYdX v4 reaches community vote stage

On-chain vote to launch dYdX v4 is expected to be live in early September

article-image

Tikhonova Yana/Shutterstock modified by Blockworks

share

The community that oversees the dYdX protocol is looking to adopt dYdX v4 in a recent governance proposal.

The crypto derivatives exchange plans to launch a custom dYdX app chain using the Cosmos SDK has been in the works since early last year as it migrates from an Ethereum rollup. 

A public testnet of dYdX v4 was launched in early July and has seen transaction volumes north of $46 million.

MEV mitigation is the subject of ongoing discussion, with monitoring by Skip Protocol, combined with some sort of governance-based social slashing the trendy approach.

Read more: Decentralized exchange DYdX to build its own blockchain

On the governance front, Callen Van Den Elst from Wintermute has noted that a handful of requirements must be met in order to successfully launch dYdX v4.

Notably, DYDX, the native token of the network, will be the layer-1 token for its new app chain. DYDX tokens will be bridged through a one-way Ethereum smart contract commissioned by the dYdX Foundation, and validators must reference the Ethereum Smart Contract when distributing DYDX tokens on the app chain.

Community governance will also determine whether a wrapped version of the Ethereum-based DYDX token (wethDYDX) will have the same governance and utility as ethDYDX tokens on dYdX v3. 

This final requirement is necessary to ensure that governance on Ethereum remains functional during the transition period. 

These proposal items will all be included in a 4-day Snapshot vote beginning Monday at 7:49 pm ET.

The price of DYDX is trading at $2.16, up from $1.97 the day prior as of 10:15 am ET.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

Privy said it would still operate as an “independent product” despite the acquisition

article-image

Franklin Templeton’s Roger Bayston tells Blockworks that stablecoins and market funds ‘complement’ each other

article-image

Analysts are lowering their earnings estimates for Big Tech, while BTC continues to outperform top names

article-image

The updates could set the Solana ETFs on a path to approval within the next few months

article-image

Could the mobile-first platform give Courtyard a run for its money?

article-image

A new middleware layer promises lightning-fast confirmations and private orderflow on Ethereum mainnet