dYdX Trading Restores Website After Breach

The dYdX Trading team has restored the compromised website of the trading platform v3 at dydx.exchange.

https://t.co/Ym1dFLLOwx website has been recovered by dYdX Trading Inc. ?

Please note that your machine may still be caching the compromised site.

Make sure to clear your cache and restart your browser before connecting to the website.

— dYdX (@dYdX) July 23, 2024

According to the developers, an attacker seized the v3 domain and deployed a fake site to steal funds when wallets were connected. The attack did not affect the core smart contracts or user funds within them, nor did it impact the v4 platform (dydx.trade).

Following the incident, Bloomberg reported that the dYdX v3 platform is up for sale. The buyer is a consortium of crypto market companies, including Wintermute and Selini Capital.

According to Gauntlet, v3 remains popular among traders due to its higher liquidity levels for certain assets and reduced slippage on large transactions. VanEck calculated that the platform generated $137 million in fees in 2022. DeFi Llama forecasts this year’s figure to be $18.67 million.

dYdX Trading stated they are seeking a “strategic alternative” to the v3 technology and are fully committed to developing the v4 platform, launched on their own blockchain.

A message from dYdX Trading Inc. pic.twitter.com/i8jrCfkvge

— dYdX (@dYdX) July 23, 2024

“While v3 has been successful, we believe the dYdX Chain better reflects our vision and the spirit of DeFi, and we will dedicate ourselves to developing this software,” the statement reads.

Earlier in July, attackers compromised the Compound Finance site through a vulnerability in Squarespace web hosting. Experts identified dYdX among the domains at risk of hacking.