DYdX Set to Sell Trading Platform to Top Crypto Firms

DYdX is in the process of negotiating the sale of its v3 derivatives trading software to a group of prominent crypto market makers, including Wintermute Trading Ltd. and Selini Capital.

Bloomberg reports that the deal, which is being advised by Perella Weinberg Partners, has an undisclosed value.

The dYdX v3 platform, built on Ethereum, facilitates trading of perpetual futures contracts with cryptocurrencies. It stands out due to higher liquidity and lower slippage on large trades, according to Gauntlet.

In 2022, the platform generated $137 million in fees from a trading volume of $466.3 billion and served over 33,900 traders, as reported by VanEck. For 2023, DefiLlama projects nearly $19 million in revenue.

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Backed by Andreessen Horowitz and Paradigm, dYdX launched its own blockchain with the v4 version last year. Founded in 2017 by ex-Coinbase engineer Antonio Juliano, it is now led by CEO Ivo Crnkovic-Rubsamen, formerly of D.E. Shaw.

This sale is significant in the DeFi space, where projects usually operate with open-source software. US residents, however, cannot trade on the dYdX platform.

Coincidentally, right after Bloomberg’s announcement, dYdX’s X account reported that its v3 interface “dydx.exchange” was compromised. Users were advised to avoid the site, though no smart contract issues were noted at that time.

Alexander Stefanov