DeFi giant DYdX is reportedly negotiating the sale of a portion of its derivatives trading software for an undisclosed sum.
Bloomberg reported Tuesday that the potential buyers may include a consortium of major market makers in the cryptocurrency industry.
Potential buyers include Wintermute Trading and Selini Capital, while Perella Weinberg Partners is serving as the firm’s advisor, the report said.
DYdX didn’t return Cryptonews’ request for comment by press time. But in an X post on Wednesday, the platform mentioned exploring new options for its V3 technology. This new direction wouldn’t involve the current Ethereum smart contracts or technology tied to the DYdX token.
Still, DYdX token holders would get to vote on any changes being made to the core V3 smart contracts.
A message from dYdX Trading Inc. pic.twitter.com/i8jrCfkvge
— dYdX (@dYdX) July 23, 2024
“Considering strategic alternatives for the v3 technology is a way to clarify our focus to allow us to make dYdX Chain software as successful as possible,” the platform said.
DeFi’s open-source nature throws a wrench into traditional mergers and acquisitions. Since most DeFi projects rely on publicly available code, anyone can copy, tweak, and build their own version, making full-on takeovers less common.
DYdX Switches to v4 Format with New Blockchain, Raises Adoption Concerns
Founded in 2017, DYdX specializes in providing perpetual trading options for various cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and Cardano. Initially operating on the Ethereum blockchain, DYdX transitioned to its own Cosmos-based DYdX Chain in October 2023.
This shift had raised concerns among analysts and community members about whether it would achieve the same level of adoption as it did on Ethereum.
Coinciding with the launch of its own blockchain, it also transitioned to its current v4 format. As of Dec. 2023, DYdX surpassed $1 trillion in trading volume and is swiftly expanding its user base.
Earlier this year, DYdX crossed Uniswap to become the largest decentralized crypto exchange (DEX) in terms of trading volumes.
DYdX Alerts Users to v3 Website Compromise
On Tuesday, DYdX said on X that its v3 website had been compromised and cautioned users against clicking on any links. The exchange clarified that this issue does not affect the v4 platform. The website has since been restored.
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