The key components of this proposal include the adoption of dYdX V4 open-source software as the next version of the dYdX protocol and the selection of DYDX as the Layer 1 (L1) token for the dYdX Chain.
Under this proposal, the dYdX community commits to adopting the Ethereum smart contract, commissioned by the dYdX Foundation, which would facilitate a permissionless and autonomous one-way bridge for migrating DYDX tokens from Ethereum to the dYdX Chain.
This move aims to seamlessly integrate DYDX into the new chain and unlock its full potential.
Furthermore, it’s worth noting that the proposal also emphasizes that wethDYDX, the resulting token from this migration, will maintain the same governance and utility functions as Ethereum-based DYDX (ethDYDX) on dYdX V3, ensuring continuity for users.
The approval of these significant changes does not necessitate any smart contract modifications and can be ratified through a Snapshot vote.
Wintermute, the proposer, currently possesses over 10 million DYDX proposing power but requires approximately 10 million more for a successful Long Timelock vote. DYDX holders are encouraged to consider delegating their proposal power to Wintermute to facilitate this crucial next step.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.