The dYdX Chain, the underlying blockchain for the dYdX perpetual futures exchange, experienced a significant outage early Monday. The disruption, lasting for over nine hours, was attributed to a scheduled upgrade to version 4 of the chain. The upgrade process encountered a hiccup, leading to an unexpected halt in operations. This was due to the incorrect implementation of a bug fix from the Cosmos IAVL library. This caused network state corruption during the upgrade, as explained by Dimitar Petkov, dYdX’s DeFi technical project lead.

Despite the halt, the dYdX Chain managed to resume block production by midday Monday following a software bug fix. The restoration process required the collective effort of validators to implement the fix and restart the network. dYdX assured that the fix would not lead to a state-breaking change, ensuring backward compatibility with previous versions of the blockchain. Importantly, the dYdX’s perpetual futures decentralized exchange (DEX) remained operational throughout the outage, preventing any disruption to trading activities.

dYdX Token Rises Amid Chain Halt Outage

Interestingly, the outage did not negatively impact the market sentiment towards DYdX’s native token, dYdX. Following the commencement of the chain halt, the token’s price saw a 4% increase. Furthermore, trading volume for the dYdX token surged by 55.65%, reaching $6,669,834 over the last 24 hours. This response indicates robust market confidence in the platform and its underlying technology, even in the face of operational challenges.

The version 4 upgrade of the Chain introduced several minor updates to the trading platform, alongside a new feature allowing the community to slash malicious validators through governance votes. The upgrade received overwhelming support from the community, passing in a near-unanimous vote last week. Despite this support, the upgrade’s scheduled maintenance report had acknowledged the potential for disruptions, a foresight that came to fruition with Monday’s outage.

Cosmos Technology Powers Advanced Trading Blockchain

The Chain, built using Cosmos technology, is designed as an app chain specifically for the dYdX derivatives trading platform. Since entering its beta phase in November, the chain has introduced several enhancements, including the option for liquid staking of its native dYdX token starting in January. The chain’s commitment to innovation and community engagement was further demonstrated in March, with a proposal passed to stake 20 million dYdX tokens from its treasury, valued at approximately $64 million, with the Cosmos liquid staking platform Stride.

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Filed under: News - @ January 1, 1970 12:00 am