when

April

USDC

Security

Reported by Cointelegraph, the dYdX community approved staking 20 million DYDX tokens to strengthen security as the decentralized crypto exchange (DEX) experiences a surge in activity.
The proposal <a rel="noopener noreferrer nofollow" target="_blank" href="https://www.mintscan.io/dydx/proposals/49">passed</a> on April 6 with 91.7% of votes in favor, allowing tokens from the community treasury worth over $61 million at current prices to be staked with liquid staking protocol Stride. <a rel="noopener noreferrer nofollow" target="_blank" href="https://dydx.forum/t/drc-dydx-community-staking-proposal/2444">According</a> to dYdX, the move is a response to the growing trading activity on the protocol:
<blockquote>
 “The rate of DYDX being staked to validators has plateaued and deposits to the exchange are growing at a tremendous pace. Over $140M USDC is held in dYdX v4, of which roughly $100M arrived in the past week.”
</blockquote>
By staking its native tokens, the DEX is seeking to shield its network from a possible control attack, similar to a 51% attack. This type of attack happens when a malicious entity gains control over a significant amount of a blockchain’s hashing power, enabling the network to be manipulated. Decentralizing voting power prevents such attacks from occurring.
dYdX noted that its network architecture enables a scenario where an attacker, with just one-third of the voting power, could pause on-chain operations. Additionally, possessing two-thirds of the voting power could allow such actors to potentially misuse the funds of users and the community within the dYdX Chain.
<blockquote>
 “Since the voting power today is $456M, a malicious actor must contribute at least $912M in staked DYDX to take control of the protocol, which would allow them to exploit user deposits and community assets. This sounds like a lot today, but it isn’t such a high barrier when we factor in that only 11.5% of the total supply of DYDX are staked.”
</blockquote>

dYdX to Stake 20M Tokens from Community Treasury to Strengthen the Network Security

TokenInsight

Другие статьи, опубликованные 8 апр. 2024 г.

Unexpected Bitcoin Spot ETF Move from China’s Two Major Companies: It’s Official Now

Get Ready for Big Gains! Milei Moneda Presale Poses Huge 100x Prospects Amid Stagnant Price Actio...

What is a Trade Journal?

MATIC MVRV ratio flashes rare buy signal amid push toward $1

Lucky Boo Identified by Professionals as Key Player in Solana Meme Coin Expansion

JPMorgan CEO Jamie Dimon’s Dire Warning on 8% Interest Rate; BTC to $100K?

Join our free newsletter for daily crypto updates!