dYdX’s U.S. Strategy: Is DeFi Capable of Bouncing Back After a $19B Shutdown?

Decentralized exchange

is planning to launch in the U.S. by late 2025, signaling a significant change in direction for the platform, which has traditionally specialized in derivatives. dYdX President Eddie Zhang revealed the expansion in an interview with Reuters, stating that the exchange intends to introduce spot trading for cryptocurrencies such as (SOLUSD). This move is in line with what describes as a more supportive regulatory climate under U.S. President Donald Trump. "Having a presence in the United States is crucial for us," Zhang explained, highlighting the possibility of clearer rules for perpetual contracts, as mentioned in .

dYdX's decision to expand into the U.S. comes after a turbulent period, including an eight-hour chain halt in October 2025 during what became the largest liquidation event in crypto history, erasing $19 billion in positions, as reported by

. The disruption was attributed to a "misordered code process" and delays by validators in restarting oracle sidecar services, which led to outdated price feeds and incorrect trades and liquidations, according to . Although no funds were lost on-chain, traders experienced losses from liquidations. In response, a governance vote approved up to $462,000 from the protocol’s insurance fund to compensate affected users, as detailed in .

dYdX’s compensation approach differed from Binance, which offered a $728 million relief package that included token vouchers and a

airdrop. Binance, however, did not accept responsibility for the losses, a position dYdX also adopted, presenting the compensation as a community-led initiative to rebuild confidence. noted the parallels in both exchanges’ responses. The incident exposed weaknesses in DeFi infrastructure, especially regarding reliance on oracles and validator coordination, with analysts pointing out that such failures can increase losses by 20-30% during periods of extreme volatility.

Recent regulatory shifts have also played a role in dYdX’s U.S. plans. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have shown willingness to regulate perpetual contracts, which dYdX currently offers only outside the U.S. Once in the U.S. market, the exchange intends to cut trading fees by as much as 50%, though perpetual contracts will not be available at launch, pending further regulatory direction.

According to Nansen, dYdX’s token (DYDX) has dropped 50% in value over the past month, highlighting the difficulties of operating in a volatile environment. The platform’s governance vote after the outage and its U.S. expansion reflect a broader effort to balance decentralization with user safety, a topic that continues to be discussed in the industry regarding liquidity protection and oracle reliability.

As dYdX gears up for its U.S. launch, its success will depend on how well it manages regulatory challenges and technical stability. By offering spot trading and lower fees, dYdX aims to attract U.S. crypto traders who have traditionally used centralized platforms like Coinbase and Kraken.

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