DRC: Migration solution for ERC-20 DYDX holders

Proposals
1

Autor : werty

Date : 08.09.2025

Summary

Many community members, including myself, still hold DYDX tokens in the ERC-20 format on Ethereum. Since the official bridge was closed, there is currently no fair or straightforward way to migrate these tokens to the dYdX Chain.

This DRC proposes that the community discusses possible solutions to enable a smooth and fair migration for ERC-20 holders.

Motivation

The closing of the bridge has left a group of long-term supporters unable to participate fully in the new ecosystem. Current alternatives (DEX swaps) are not feasible due to low liquidity and heavy losses.

It is important for the integrity of the community and fairness to provide ERC-20 holders with a proper migration path.

Proposed Solutions

I would like to open discussion on the following possible approaches:

1. Reopen the bridge temporarily — allow ERC-20 DYDX holders to convert their tokens into native DYDX at a 1:1 rate.

2. Provide official liquidity on decentralized exchanges — so ERC-20 holders can swap at a fair price without extreme slippage.

3. Introduce an alternative migration contract — enabling ERC-20 tokens to be redeemed directly for DYDX on the new chain.

Any of these approaches could work, and the exact design can be debated by the community and core team.

Next Steps

• Gather feedback from the community.

• Assess technical and governance feasibility.

• If there is strong support, move this DRC forward into a DIP for formal consideration.

I kindly ask the dYdX team and community not to close this discussion prematurely, as it remains an unresolved issue for many users. Let’s work together to find a fair solution.

173 Likes
2

Dear DYDX Team

I am writing with deep respect and concern to sincerely request the reopening of the ETH–dYdX bridge. I understand that the bridge closure was decided through a governance proposal and executed automatically, but many users, including me, are now unable to access their tokens, which has created a very difficult situation for us.

We kindly ask, if possible, to provide even a temporary solution to reopen the bridge. This action would be extremely valuable for the community, and we would be deeply grateful.

With utmost respect and appreciation

102 Likes
3

I fully support the consideration of this DRC. I was unable to migrate ethDYDX within the specified migration period. This is a significant amount for me, and it is a big financial loss. I have long supported the development of the DYDX project and am a long-term coin holder. I am confident that such community members (holders) are valuable to the project and the team. Although some of our community members were unable to migrate their coins (manually), I ask the DYDX Community and Team to find a fair way to transfer (migrate, exchange) coins for those who were late.

With respect to all Community members and the DYDX Team.

100 Likes
4

I fully support this DRC. Many of us are still holding ERC-20 DYDX and there should be a fair migration path. Reopening the bridge or creating another official option would really help the community.

97 Likes
5

Absolutely agree.

I don’t know why, but I’m holder and I learned about migration only today.

93 Likes
6

100% Agree with others…

There should be a way to unlock tokens at erc-20. I am a ling term holder and somehow missed the announcement. Total disapoointment.

91 Likes
7

I fully support the concerns raised here. Like many others, I still hold ERC-20 DYDX and currently face the same problem of having no fair way to migrate. I kindly ask the team and community to keep this discussion open and to work towards a fair solution, whether through a temporary bridge reopening or another migration mechanism. It is important to respect long-term holders who supported the project from the early stages.

With respect to the DYDX Community and Team.

83 Likes
8

I have been a DydX token holder for a long time and did not plan to sell it for a long time, so I kept everything in a cold wallet. I was very surprised when I found out that one of my favorite tokens simply disappeared - there was still an opportunity to sell it at a 90% discount. I ask the team to consider the possibility of a fair conversion. Thank you

64 Likes
11

Dear DYDX Team,

I am also a holder of DYDX tokens on the ERC-20 network, for about two years now. Unfortunately, I am not an active member of the community and did not closely follow the news specifically for this project (my tokens have been sitting in a hot wallet for a long time). Consequently, I also did not manage to migrate to the other network in time.

For me, this is a significant amount of money, and losing it would greatly impact my financial situation. None of the major cryptocurrency-related public channels I am subscribed to provided information about the final bridge shutdown date, and I physically could not have known that migration was required by a specific deadline.

Perhaps I am at fault for not paying enough attention. I would like to very sincerely ask the team to please give us another opportunity to transfer our tokens to the other network! I truly hope you can understand our situation.

Sincerely

82 Likes
12

All of you created accounts today to agree with this post.

No one believes you are real.

17 Likes
13

Plot twist:

All of these are the same person.

13 Likes
14

I want to fully support this proposal on behalf of those of us who missed the migration deadline.

I personally still hold a significant amount of ethDYDX tokens in my old wallets. Unfortunately, I was not active in the crypto space during the migration period and only recently rediscovered these tokens, which meant I missed the bridging deadline.

We are not asking for unlimited extensions, only a limited, fair migration window so that affected users can move their tokens to the dYdX chain and continue to contribute as active participants.

I strongly urge validators and the community to support this proposal. It’s about fairness and trust — ensuring that no long-term supporters are permanently excluded due to circumstances or inactivity during the migration period.

Please consider reopening migration for a limited period so that genuine holders can complete the process.

71 Likes
15

Hello dYdX Foundation Team,

Thank you for your detailed reply and for clarifying the governance decisions and timeline regarding the discontinuation of the wethDYDX Bridge.

While I understand and respect the governance process, I am now in a very difficult position — my DYDX tokens remain on Ethereum (ERC20) and cannot be traded or bridged to the new chain, which has caused a significant loss of liquidity and utility for my holdings.

Since reopening the Bridge is not currently possible, could you please:

  1. Recommend any official partners, exchanges, or OTC desks that can facilitate a safe migration from ERC20 DYDX to DYDX Chain.

  2. Suggest any community-led initiatives or proposals that could address the situation for holders like myself who missed the deadline.

I am willing to cover reasonable fees for any safe and legal solution. Your guidance would be greatly appreciated.

Best regards,

NGUYEN ANH HOANG

68 Likes
16

Support for ERC-20 DYDX Holders

Dear DYDX Team,

Since the bridge closure, many ERC-20 DYDX holders have been left without a practical way to migrate their tokens to the native chain. This situation limits participation in the ecosystem and creates a sense of unfairness.

I kindly ask you to consider one of the following solutions:

•	Temporarily reopening the migration bridge,

•	Providing official liquidity on DEXs to enable fair ERC-20 to native swaps,

•	Or deploying a new contract that allows direct conversion from ERC-20 to native DYDX.

Implementing any of these measures would ensure a fair and complete transition for all users while reinforcing trust in the DYDX project.

Thank you for your attention.

63 Likes
17

Thanks for putting these ideas forward and starting the discussion. A few thoughts from my side (for context, I don’t have any dydx erc-20 tokens):

  1. Temporary bridge reopening

    This doesn’t seem workable. Reopening once sets a precedent that it could always be reopened again later, which undermines finality and creates repeated governance overhead. The original bridge was closed because dYdX on Ethereum L2 was wound down and the token no longer had utility. Revisiting that decision would likely bring the same issue back in the future.

  2. Providing official liquidity on DEXs

    I don’t see this as feasible, mainly because it raises the question of whose funds would provide that liquidity. It would be a big risk and cost burden, and not aligned with the role of the community or the protocol.

  3. Alternative migration contract

    The migration contract already exists on Ethereum and is immutable. What no longer works is the support on the dYdX Chain side, so deploying a “new” contract wouldn’t really solve the problem in practice.

Given the technical and governance implications, it would be helpful to hear input from validators here as well, since they’d ultimately need to enforce or support any such solution.

39 Likes
18

I really want to add my voice here. The issue of ERC-20 DYDX tokens still affects many community members who have been long-term supporters of the project. Closing the bridge without offering a fair alternative left a gap that creates frustration and weakens trust.

I strongly believe that the community and the team should work together on a reasonable migration path — whether that’s reopening the bridge, providing temporary liquidity, or creating another technical solution. What matters most is that holders are not abandoned and can join the new chain on fair terms.

Please don’t close this thread, as it represents a real and ongoing concern. Keeping the conversation alive is the only way we can reach a solution that benefits everyone.

51 Likes
19

Currently, ERC-20 DYDX liquidity is very low, as all exchanges no longer support ERC-20 deposits. The only option is to swap via decentralized exchanges (DEX), which incurs high slippage and significant financial losses. In my case, the potential loss is substantial compared to the original value. I was not informed about the conversion and never agreed to monitor all DYDX community updates closely. Many other holders were also unaware of the migration. I’d like to address the challenges faced by ERC-20 DYDX holders who couldn’t migrate before the bridge closed, as there’s currently no practical way to transfer tokens to the new chain without major obstacles. Please consider one of these solutions:
• Temporarily reopening the bridge,
• Creating an alternative migration contract to allow direct exchange of ERC-20 tokens for native DYDX.
Any of these options would provide a fair and smooth transition for ERC-20 token holders.
Regards

52 Likes
20

Thank you for participating in the discussion. I would like to comment on your opinion.

  1. Why close the bridge if not all ethDYDX holders have migrated? In this case, it would have been necessary to extend the bridge and increase media coverage so that everyone could manually transfer their tokens. The second option, as practice in other crypto projects shows, is to leave the bridge open indefinitely. This approach takes into account the interests of every dYdX participant. And what was the result? In fact, 42 million coins were canceled. That’s $25 million, by the way! That’s 2K-3K dYdX holders who lost their deposits.

  2. And before that, whose funds provided liquidity on DEX? Clearly not the holders’.

  3. Since there is an alternative migration contract, why not resume support from dYdX Chain?

  4. I’ll suggest another option: why not resume dYdX deposits on the Ethereum network with one of the CEX exchanges?

  5. I am confident in the high qualifications of the dYdX team, and they will find at least one option that would suit both us and the dYdX project. (+ GPT Chat will give you a dozen more options if you want).

54 Likes
21

Thanks for sharing your perspective — it’s helpful to see the concerns raised. Let me address each of the points:

1. Temporary bridge reopening

While I understand the concern about “precedent,” the reality is that many community members were unable to migrate before the bridge was shut down. A limited, one-time reopening (with clear communication and a strict closing date) would not create ongoing uncertainty — it would simply allow existing holders to complete migration fairly. Governance can explicitly state that this is the final opportunity, which preserves finality while solving a real problem.

2. Providing official liquidity on DEXs

The suggestion was not to have the foundation or protocol fund liquidity indefinitely, but rather to consider temporary support or coordination with partners to provide fair swap routes. Right now, ERC-20 holders face extreme slippage (sometimes 80–90%), which is effectively a loss of funds. Even partial liquidity provisioning, if done transparently and for a limited period, would be far less costly to the ecosystem than leaving a group of supporters stranded.

3. Alternative migration contract

It’s true the original contract on Ethereum is immutable, but the dYdX community is capable of deploying new contracts and governance modules when there is a need. Other projects in Cosmos have successfully created “secondary migration paths” after an initial bridge shutdown. If the will exists, technical feasibility should not be the blocker.

Ultimately, this issue is about fairness and community trust. Many long-term supporters of dYdX still hold ERC-20 tokens, and finding some path forward — whether a one-time bridge reopening, temporary liquidity, or another creative solution — would strengthen the ecosystem and prevent alienating part of the community.

57 Likes
22

Dear DYDX team.
I am writing this message with great hope. Bridge

ETH-dYdX was closed, and now we and a whole community of users are trapped without access to our funds. I understand that rules are rules, but the situation is really critical.

I appeal to the DYDX team: please help us! We are not asking to cancel the decision, but there may be a way to find a time window or a special solution so that we can pick up our tokens!? For many of us, these are significant amounts, and we believed in the security of the protocol.

Such huge support on your part will not go unnoticed and will show the entire crypto community that you really care about your users.

Thank you in advance for any attention to this problem!

51 Likes