dYdX Examines Suspension of Block Production Amid Planned Upgrade

The decentralized finance (DeFi) protocol dYdX is currently examining an unforeseen interruption in block production following a planned upgrade of its chain on April 8.

dYdX has acknowledged the outage on its mainnet and reported that ecosystem engineers are actively troubleshooting the problem. An incident report indicates that the outage has persisted since 6:50 a.m. UTC, with no resolution anticipated for several hours.

Significant Outage Affects dYdX Chain After Scheduled Protocol Upgrade

Update on the dYdX Chain Protocol v4.0 Software Upgrade.

The upgrade is now projected to occur between 7:00-8:00 AM (UTC)

Keep an eye on the targeted block height page as timing may vary.

Block Height: https://t.co/RwNnjsVFRS https://t.co/KS8uEm0YZW

— dYdX Ops subDAO (@dydx_ops_subdao) April 7, 2024

On April 8, at 5:30 am UTC, dYdX released a status update informing users about the ongoing scheduled protocol upgrade and warning of possible disruptions in dYdX Chain functionalities.

Update #2

The dYdX Chain is currently halted due to the v4.0.0 software upgrade, and the issue is under investigation.

We aim to resolve it in the coming hours.

We will keep you informed, thank you for your understanding https://t.co/6oUGHHyhXx

— dYdX Ops subDAO (@dydx_ops_subdao) April 8, 2024

Despite the completion of the scheduled maintenance, block production on the chain has not resumed.

As per the latest update, the blockchain explorer platform Nodes Guru indicates that the dYdX mainnet has not generated any new blocks since the scheduled upgrade, which took place five hours earlier.

The dYdX Chain is halted due to the v4.0.0 software upgrade, and the issue is currently being investigated

You can check the dYdX Chain status page. https://t.co/eBh7NCZ2rR https://t.co/dQqbOHROku

— dYdX (@dYdX) April 8, 2024

The investigation is ongoing, with the team indicating that a resolution may not be achieved until later. dYdX mentioned plans to meet with validators around 3 pm UTC to discuss potential solutions without risking validator penalization for being offline during the chain restart.

“The issue remains under investigation. It has been agreed to reconvene with the validators around 15:00 UTC. This means that the developers will not propose a workaround or a fix until then to prevent the validators from being penalized for not being online when the chain restarts. When a validator is “jailed,” it indicates a temporary suspension from participating in network activities.”

This incident marks the first significant outage for the protocol since the launch of dYdX version 4 and its standalone Cosmos blockchain on the mainnet in October, according to its status page.

dYdX Chain Encounters Setback During Planned Protocol Upgrade

Initially proposed on February 21, the planned protocol upgrade aimed to introduce various enhancements, including order book functionalities, risk and safety improvements, and advancements related to Cosmos integration.

dYdX launched its dYdX Chain in October 2023, allowing DYDX token holders to transfer assets from the Ethereum network to the new platform, thereby broadening its utility. Data from DefiLlama indicates that the total value locked on the dYdX chain is $509.71 million at the time of this report. The network has generated over $48.59 million in fees over the past year.

The project announced its decision to migrate from Ethereum in early 2022, citing concerns regarding the network’s scalability challenges. The incident does not seem to have affected the price of dYdX’s token, which has increased by over 4% in the last 24 hours, according to CoinMarketCap.

On April 6, the dYdX community voted to approve the staking of $61 million in treasury tokens on the liquid staking protocol known as Stride. This decision comes in response to the rising trading activity within the protocol, as noted by dYdX.

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