DeFi giant DYdX is reportedly negotiating to sell part of its derivatives trading software for an undisclosed sum. Bloomberg reported Tuesday that the potential buyers could be a consortium of major market makers in the cryptocurrency industry.
According to the report, the potential buyers are Wintermute Trading and Selini Capital, with Perella Weinberg Partners acting as an advisor to the company.
The company, in a Wednesday post on the X platform, mentioned exploring new options for V3 technology. This new direction would not include Ethereum ‘s current smart contracts or the technology associated with the DYdX token.
Nonetheless, DYdX token holders will be able to vote on any changes made to the underlying V3 smart contracts.
“Considering strategic alternatives to v3 technology is a way to clarify our focus, which will enable us to make dYdX Chain’s software as effective as possible.” – the platform stated.
The open nature of DeFi’s software makes traditional mergers and acquisitions difficult. Because most DeFi projects are based on publicly available code, anyone can copy, improve and build their own version, making full acquisitions less common.
DYdX moves to v4 format with new blockchain, raises adoption concerns
Founded in 2017, DYdX specializes in providing perpetual trading options for various cryptocurrencies such as Bitcoin, Ethereum, Dogecoin and Cardano. Operating initially on the Ethereum blockchain , DYdX switched to its own Cosmos-based DYdX chain in October 2023.
This change raised concerns among analysts and community members about whether it would achieve the same level of adoption as Ethereum.
Coinciding with the launch of its own blockchain, it also moved to its current v4 format. As of December 2023, DYdX’s trading volume exceeded $1 trillion and is rapidly expanding its user base.
Earlier this year, DYdX surpassed Uniswap to become the largest decentralized cryptocurrency exchange (DEX) in terms of trading volume.
On Tuesday, DYdX reported on the X program that its version 3 website had been compromised and warned users not to click on any links. The exchange clarified that the problem did not affect the v4 platform. The website has since been restored.
