[DRC] Cease support for the wethDYDX Smart Contract (i.e., the Bridge) on the dYdX Chain side

Proposals
1

Summary

This proposal seeks to finalize ceasing support for the wethDYDX Smart Contract (i.e., the Bridge) on the dYdX Chain side following the successful initial text proposal on December 7, 2024. We aim to submit the on-chain proposal on June 9, 2025 (Monday), to maximize community participation.

Abstract

The dYdX Chain, a delegated proof-of-stake blockchain network built using the Cosmos SDK, leverages DYDX as its L1 token. DYDX serves three core functions within the network: staking, security, and governance. Since the launch of dYdX Chain, ~[94%] of ethDYDX has been migrated to DYDX on the dYdX Chain. dYdX Trading, Inc. shut down dYdX v3 on October 28, 2024, significantly reducing the utility of the ethDYDX token. The existence of both ethDYDX tokens and DYDX tokens has led to fragmented liquidity, complicating market dynamics.

Following the successful initial text proposal on December 7, 2024, we now propose to finalize the cessation of support for the wethDYDX Smart Contract on the dYdX Chain side. We aim to submit the on-chain proposal on June 9, 2025 (Monday), to maximize community participation.

Motivation & Rationale

With the sunset of dYdX v3, the ecosystem has shifted its full focus to the dYdX Chain. The continued existence of both ethDYDX and DYDX tokens has fragmented liquidity and complicated market dynamics, limiting participation in staking and governance on the dYdX Chain. Maintaining the wethDYDX Bridge also introduces ongoing technical overhead and potential future maintenance or security risks. Discontinuing support for the Bridge will simplify the protocol’s tokenomics, consolidate network utility around DYDX on the dYdX Chain.

These points were outlined in the research shared on the governance forum. The community approved the initial text proposal, and this proposal aims to finalize the cessation of support for the Bridge smart contract.

Specification & Implementation

The dYdX Chain genesis file includes a built-in boolean flag, is_disabled, which effectively disables the bridge. This flag will be toggled to true as part of the upcoming proposal to enforce the bridge closure.

If this proposal passes, the dYdX Chain will no longer recognize transactions through the Bridge, and ethDYDX holders will not be able to convert their ethDYDX tokens on Ethereum into DYDX tokens on the dYdX Chain via the Bridge.

We recommend bridging any remaining ethDYDX (on Ethereum) to the dYdX Chain before June 9, 2025, to avoid any disruption.

If this proposal passes and the Bridge support is ceased, the dYdX community—if there is sufficient interest—could consider developing a procedure and submitting a governance proposal to migrate any remaining ethDYDX on Ethereum to DYDX on the dYdX Chain.

3 Likes
2

Hello dYdX community,

A quick update on the proposal to close the Ethereum–dYdX Chain bridge:

We are still on track to launch the governance proposal on Monday, June 9, 2025. If the proposal passes, the bridge will close on June 13, 2025, when validators stop acknowledging bridging transactions.

Important note for ethDYDX holders and Bridge front-end operators:

If the proposal passes, any bridging transactions initiated within ~25 hours (86400 dYdX Chain blocks + Ethereum finality time) before the bridge closure will fail. Specifically, any ethDYDX sent to the wethDYDX contract during this period will be locked in the bridge smart contract without the user receiving DYDX on dYdX Chain.

Please plan accordingly and complete any necessary bridging well in advance of the closure window.

1 Like
3

Hello dYdX Community

We would like to inform you that the bridge.dydx.trade will be updated to reflect the contents of the governance proposal once it is formally launched..

If the proposal is approved, validators are expected to stop acknowledging bridging transactions on June 13, 2025. In preparation, the dYdX Operations subDAO stands ready to update the bridge.dydx.trade front-end accordingly once the vote concludes.

As highlighted in Nethermind’s post, transactions initiated within ~25 hours before the closure (assuming the proposal is passed) may fail or result in tokens being locked. We therefore recommend that all users complete any necessary bridging before 12 June 2025.

If the proposal passes and the scheduled deprecation date is reached, the front-end will be updated to reflect that the bridge is no longer supported

dYdX Operations subDAO

2 Likes
4

Hi I tried many times to use the bridge but I got always errors. How can I do to convert my tokens?

7

Hi @MisterXYZ,

Thank you for reaching out, and welcome to the community.

Following the approval of the dYdX Chain governance proposal on Jun 13th 2025, support for the Ethereum–dYdX Chain bridge has been officially deprecated. This means it is no longer possible to bridge Ethereum-based DYDX tokens to the dYdX Chain.