Decentralized Exchange dYdX Suffers Security Breach Amid Talks To Sell Trading Software: Report

The developer of the decentralized finance (DeFi) exchange dYdX is reportedly negotiating the sale of its derivatives trading software for an undisclosed amount.

Citing anonymous sources, Bloomberg reports that dYdX Trading is in talks to sell dYdX v3 software to potential buyers, which include the algorithmic crypto trading company Wintermute Trading and the venture capital firm Selini Capital.

The exchange enables peer-to-peer trading of perpetual futures contracts on crypto assets such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Dogecoin (DOGE). The older, semi-decentralized version of the trading platform uses the v3 software but the fully decentralized protocol currently uses v4.

According to crypto risk modeling firm Gauntlet, the v3 platform remains appealing to traders because it offers a higher level of liquidity for some tokens and less slippage on large transactions.

Following news of the prospective sale, dYdX warns its users not to visit the v3 platform for security reasons.

“We just learned that dYdX v3 website (dYdX . exchange) has been compromised. Please do not visit the website or click any links until further notice. An update will be provided when available. This message does not relate to dYdX v4.”

The DEX later announced that it had recovered the website.

“dydx.exchange 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.”

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