On September 8, the non-custodial trading platform dYdX issued a governance token and unveiled the Safety Staking Pool. Shortly after its launch, developers discovered an error in the deployment of its smart contract.
After the Safety Staking Pool launch, we discovered an error in the deployment process for the Safety Staking Pool smart contract. In response, access to the Safety Pool was temporarily removed from https://t.co/ADuVmVnAWg
🚨 No user funds are at risk. All funds are recoverable.
— dYdX Foundation 🦔 (@dydxfoundation) September 8, 2021
The Safety Staking Pool allows users to earn yield in DYDX. Due to the error, access to the service was blocked.
The new governance model envisages that updates to the smart contract can be made only after community approval. The developers noted that they will soon publish the patch’s open-source code, which platform participants will be able to vote on.
Governance may also decide if or how to compensate the few early stakers for the rewards they should have received. No compensation for deposited funds should be necessary as the funds are not at risk.
— dYdX Foundation 🦔 (@dydxfoundation) September 8, 2021
“The design of the Safety Staking Pool contemplates locking deposits for at least one epoch (28 days). If we assume that the upgrade proposal will be approved within the next week, the incident won’t affect users, and the few early stakers will be able to withdraw their funds in time,” the project team writes.
The developers also stressed that the forthcoming vote includes a decision on whether to compensate potential rewards that stakers might have earned. Compensation for deposited assets is not anticipated, as they are not at risk.
After the governance-token release, dYdX distributed 7.5% of its issuance among users who used the platform before July 26. To participate in the airdrop, users had to meet certain trading-volume targets.
After the release, the price of DYDX stood at $11.77, according to CoinGecko. On September 9 at 5:00 MSK, Binance conducted the token listing — in the first hour quotes exceeded $14. At the time of writing, the asset was trading near $12.5.
Back in June, the dYdX attracted $65 million from Paradigm and other investors.
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