DeFi Exchange Platform dYdX Places Solana in 'Close Only' Mode

The move comes after Solana has plummeted 40% in 24 hours due to its link with the beleaguered Sam Bankman-Fried empire.

AccessTimeIconNov 9, 2022 at 11:42 p.m. UTC
Updated Nov 10, 2022 at 3:23 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Decentralized exchange dYdX placed Solana trades in “close only” mode, meaning users will only be able to close out their positions on the perpetuals exchange and not open new ones.

DYdX cited “market volatility” as its reason for making the move. Solana’s SOL token fell precipitously today on the news that FTX, a crypto exchange that holds a major stake in Solana, has become insolvent. SOL is currently priced at $14.10, down 40% from $24 a day ago.

DYdX is a “hybrid” decentralized exchange that uses code – rather than a central intermediary – to facilitate most of its operations. The platform facilitated $3 billion worth of transactions in the past 24-hours, making it the largest decentralized finance (DeFi) exchange by daily trading volume according to CoinMarketCap.

Decentralized exchanges exist as a response to centralized trading platforms like FTX that take full custody of user funds – a practice that is viewed by some as anathema to crypto’s founding goals around self-sovereignty and trustlessness.

Though dYdX will continue allowing users to close out their positions, the announcement that it would disallow some kinds of trades – even to protect users – led to attacks from some who believe a “decentralized” platform shouldn’t be able to curtail user activity.

DYdX is not the only trading platform that has restricted Solana trades due to the day’s high volatility and sinking prices. The centralized exchange halted Solana-based stablecoin deposits and withdraws earlier today, and the exchange OKX announced that it would delist Solana futures and stop listing new options.

DYdX didn’t immediately respond to CoinDesk’s request for comment.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Sam Kessler

Sam is CoinDesk's deputy managing editor for tech and protocols. He reports on decentralized technology, infrastructure and governance. He owns ETH and BTC.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.