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Gungun Bhatia
Nov 10, 2022
by Gungun Bhatia

DeFi Exchange Platform dYdX Sets Solana to "Close Only" Mode

dYdX Solana

Table of contents

  1. dYdX - Hybrid Decentralized Exchange
  2. Other Platforms to Limit SOL Transactions
Decentralized exchange dYdX has placed Solana trades in “close only” mode, which means users can only close out their existing positions and not open new ones. According to dYdX, market volatility is the cause of the change.

The announcement that FTX, a cryptocurrency exchange that owns a significant investment in Solana, has gone bankrupt caused a sharp decline in the value of the SOL token for Solana today. SOL is now trading for $14.10, down 40% from $24 one day ago.

dYdX - Hybrid Decentralized Exchange

The entirety of dYdX's activities is facilitated by code instead of a central intermediary, making it a hybrid decentralized exchange. According to CoinMarketCap, the platform supported $3 billion in transactions over the previous 24 hours, which makes it the largest DeFi exchange by daily trade volume.

Decentralized exchanges were created in reaction to centralized trading platforms like FTX that assume complete custody of user assets, a technique that some believe is incompatible with the self-sovereignty and trustlessness that were primary tenets of cryptocurrency when it was first developed.

Other Platforms to Limit SOL Transactions

Due to the extreme volatility and falling prices, dYdX does not represent the only trading platform limited to Solana transactions. Earlier today, the centralized exchange Crypto.com stopped accepting deposits and withdrawals made using Solana-based stablecoins. At the same time, OKX said that it would suspend listing new options and disband Solana futures.

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DeFi Exchange Platform dYdX Sets Solana to "Close Only" Mode
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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