dYdX rumored to be selling dYdX V3, market maker Wintermute interested in acquiring

Bloomberg reported that the leading decentralized exchange (DEX) for perpetual contracts, dYdX, is said to be in talks to sell its dYdX V3 software to buyers such as market maker Wintermute. Subsequently, the dYdX V3 website was attacked; however, fortunately, no user losses have been reported at this time.

dYdX Considering Selling dYdX V3 Software

According to sources familiar with the matter, dYdX Trading, the developer behind dYdX, is in talks with market makers and venture capital firms regarding the sale of its V3 protocol.

Potential buyers reportedly include well-known cryptocurrency market maker Wintermute and venture capital firm Selini Capital, among others.

dYdX has only mentioned in a statement released earlier today that dYdX is exploring "strategic alternatives related to the V3 technology," excluding Ethereum smart contracts or other technologies governed by utility tokens. DYDX token holders still need to vote and approve "any changes to the V3 smart contracts":

While V3 software has received positive feedback, we believe that dYdX Chain better represents dYdX Trading's vision and the spirit of DeFi, so we will focus on the development of that software.

Declared No Vulnerabilities Two Weeks Ago, Now Under Attack

Shortly after the news of a potential sale emerged, dYdX tweeted that its dYdX V3 website was under attack, urging users not to click on suspicious links and emphasizing that it does not affect the operation of dYdX V4:

Currently, only the website frontend has been compromised, and the smart contracts of dYdX V3 are still secure and operational.

Ironically, dYdX's tweet two weeks ago addressed the hacking of the frontends of Compound Finance and Celer Network, claiming that they had "not detected any vulnerabilities or security issues," yet now their website has also been attacked.

It is reported that dYdX.exchange and two other protocols are hosted by Squarespace for domain hosting services, which was reported to have security risks a few weeks ago.

dYdX Token Price Drops Over 8%

Coingecko data shows that tokens such as DYDX, ETHDYDX, and STDYDX have experienced daily declines of around 8% to 9%.

In October last year, dYdX launched its own L1 "dYdX Chain v1.0" and also introduced the V4 version, completing the transition from Ethereum L2 to operating on Cosmos L1.

Competing with Uniswap? dYdX Chain v1 Launched, Emphasizing Fully Open Source Code

Prior to this, dYdX founder Antonio Juliano resigned as CEO in May this year, and was succeeded by former Chief Strategy Officer Ivo Crnkovic-Rubsamen.