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Some members of the dYdX community have recently raised concerns regarding the discontinuation of support for the wethDYDX smart contract (the “Bridge”). The dYdX Foundation would like to provide additional clarity on the governance process that determined this outcome, as well as the Foundation’s role within the ecosystem.
Background: Governance Decisions
The decision to discontinue support for the Bridge was not unilateral, but rather the result of a two-step governance process led by the dYdX community:
- December 7, 2024 – A text-based proposal passed to cease support for the Bridge by June 2025.
- June 13, 2025 – A parameter-change proposal finalised the discontinuation of support.
With these governance outcomes, support for the Bridge formally ended in June 2025.
Key Clarifications
Re-Enabling the Bridge
The dYdX Foundation does not have the ability to unilaterally re-enable or extend support for the Bridge. Any reconsideration would need to come from a new governance proposal and gain approval from the dYdX community through the established process.
Providing Liquidity
Some community members have asked whether the Foundation could provide liquidity on decentralised or centralised exchanges. It’s important to clarify that the dYdX Foundation is a community-funded, non-profit entity. It does not hold large proprietary reserves, nor is it structured to operate as a market maker.
Alternative Migration Solutions
As with any protocol change, solutions must be community-driven and follow the dYdX governance proposal lifecycle.
Path Forward
Since the discontinuation of the Bridge was finalised on June 13, 2025, any new initiatives for bridging or liquidity should be determined by the community. A likely process would be to:
- Align on a potential solution on the dYdX Forum.
- Introduce a text proposal to gauge alignment from the community.
- If the text proposal passes, follow up with an on-chain proposal if necessary.
Conclusion
The Bridge discontinuation was a formal governance decision by the dYdX community. While the Foundation’s role is to support governance, education, and coordination, it does not act as a liquidity provider or a unilateral decision-maker. Any next steps must originate from the community itself, ensuring that dYdX remains a truly decentralized protocol.
About the dYdX Foundation
Legitimacy and Disclaimer
Crypto-assets can be highly volatile and trading crypto-assets involves risk of loss, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be adequate for retail investors. Do your own research and due diligence before engaging in any activity involving crypto-assets.
dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to U.S. persons as well as in other restricted jurisdictions. The dYdX Foundation does not operate or participate in the operation of any component of the dYdX Chain's infrastructure.
The dYdX Foundation’s purpose is to support the current implementation and any future implementations of the dYdX protocol and to foster community-driven growth in the dYdX ecosystem.
The dYdX Chain software (including dYdX Unlimited) is open-source software to be used or implemented by any party in accordance with the applicable license. At no time should the dYdX Chain and/or its software or related components (including dYdX Unlimited) be deemed to be a product or service provided or made available in any way by the dYdX Foundation. Interactions with the dYdX Chain software (including dYdX Unlimited) or any implementation thereof are permissionless and disintermediated, subject to the terms of the applicable licenses and code. Users who interact with the dYdX Chain software, i ncluding dYdX Unlimited (or any implementations thereof) will not be interacting with the dYdX Foundation in any way whatsoever. The dYdX Foundation does not make any representations, warranties or covenants in connection with the dYdX Chain software (or any implementations and/or components thereof, including dYdX Unlimited), including (without limitation) with regard to their technical properties or performance, as well as their actual or potential usefulness or suitability for any particular purpose, and users agree to rely on the dYdX Chain software (or any implementations and/or components thereof, including dYdX Unlimited) “AS IS, WHERE IS”.
Nothing in this post should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act by anyone. Users should conduct their own research and due diligence before making any decisions. The dYdX Foundation may alter or update any information in this post in the future at its sole discretion and assumes no obligation to publicly disclose any such change. This post is solely based on the information available to the dYdX Foundation at the time it was published and should only be read and taken into consideration at the time it was published and on the basis of the circumstances that surrounded it. The dYdX Foundation makes no guarantees of future performance and is under no obligation to undertake any of the activities contemplated herein.
Depositing into the MegaVault carries risks. Do your own research and make sure to understand the risks before depositing funds. MegaVault returns are not guaranteed and may fluctuate over time depending on multiple factors. MegaVault returns may be negative and you may lose your entire investment.The dYdX Foundation does not operate or has control over the MegaVault and has not been involved in the development, deployment and operation of any component of the dYdX Unlimited software (including the MegaVault).
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