Final Cessation of Support for wethDYDX Smart Contract Vote

This vote finalizes a decision initiated on December 7, 2024, when 87% of dYdX token holders approved phasing out the Bridge by June 2025 [docs.dydx.community]. The wethDYDX Smart Contract, a bridge linking Ethereum-based ethDYDX to the dYdX Chain, will no longer be supported, ending token conversions. The purpose? To streamline operations on the native chain, reducing reliance on legacy infrastructure. This could boost efficiency and security but will lock ethDYDX holders out of future chain interactions. The impact? A leaner, more autonomous dYdX Chain, potentially attracting pro traders, though it risks alienating users tied to the old system. Risk Disclaimer: Assess your token holdings, as discontinued support may affect value or utility.

Recent News

Over the past three months, dYdX has hit milestones like launching a dydx.vote webpage to enhance governance participation [dydxgrants.com, June 2025]. The Foundation also sponsored four ETHGlobal hackathons, boosting ecosystem visibility [dydxgrants.com]. These moves signal a maturing protocol, with the Bridge cessation vote building on the 2024 community consensus to prioritize native chain growth.

Future Plans

Looking ahead, dYdX aims to scale its orderbook throughput “orders of magnitude higher” with custom Cosmos-based tech [dydx.xyz]. Plans include expanding market listings and distributing 100% of protocol fees in USDC to stakers [dydx.foundation]. This focus on staking and governance could solidify dYdX as a DeFi leader, though success hinges on community adoption post-Bridge closure.

Onchain Data

Exact transaction volumes tied to the Bridge are unavailable as of now, but historical data shows only 2% of dYdX trading volume relied on it pre-2024 [docs.dydx.community]. This low dependency supports the cessation, though current wallet activity around ethDYDX remains untracked here. We’ll update as data emerges from platforms like Dune Analytics.

Community Sentiment

X reactions are buzzing with excitement and curiosity. Users like @1ncrypto call it a “clean break from legacy infra” and “real onchain governance” [X, 11:13 2025-07-07], while @Irishotbabe questions the rationale [X, 16:23 2025-07-07]. Influencers praise the maturity, but some express concern for ethDYDX holders. The sentiment leans positive, with governance participation trending as a key discussion point.

Additional Insights

Competitors like Uniswap rely on AMM models, while dYdX’s orderbook focus caters to institutional traders [dydx.xyz]. This vote aligns with a broader DeFi shift toward sovereignty, potentially setting a precedent. For users, staking DYDX offers rewards, but Bridge closure requires proactive portfolio adjustments.

Mark your calendars and vote at https://t.co/iOK9GTxNo5! Stay informed and engaged as dYdX shapes DeFi’s future.