dYdX puts Solana in 'Close Only' mode

Key points: 

• dYdX has set Solana trading in "close-only" mode, which means users can only close positions on perpetual exchanges and cannot open new positions.
• "Market volatility" is the reason for this move.
• SOL is currently at $14.10, down 40% from $24 a day earlier.
• The announcement has led to attacks from some who believe that a “decentralized” platform.

Decentralized exchange dYdX has set Solana trading in "close-only" mode, which means users can only close positions on perpetual exchanges and cannot open new positions.

dYdX cited "market volatility" as the reason for the move. Solana’s SOL token fell sharply on news of the bankruptcy of FTX, the cryptocurrency exchange that holds a large stake in Solana. SOL is currently at $14.10, down 40% from $24 a day earlier.

dYdX is a "hybrid" decentralized exchange that uses code rather than a central agent to facilitate most of its operations. According to CoinMarketCap, the platform has facilitated $3 billion worth of transactions in the past 24 hours, making it the largest DeFi exchange by daily volume.

Decentralized exchanges exist in response to centralized exchanges like FTX that fully host user funds — a practice that some see as anathema to the founding goals of cryptocurrencies’ self-sovereignty and trustю

While dYdX will still allow users to unwind positions, the announcement that it will ban certain types of transactions — even to protect users — has led to attacks from some who believe that “decentralized” platforms cannot limit user activity.

dYdX is not the only trading platform that has restricted Solana trading due to the high volatility and price drop during the day. Earlier today, centralized exchange Crypto.com stopped deposits and withdrawals of Solana-based stablecoins, and exchange OKX announced that it would delist Solana futures and stop listing new options.