According to news on November 19, dYdX founder Antonio tweeted that in the past few days, dYdX’s YFI open interest soared from US$ 800,000 to US$ 67 million. Basically all of this was done by one person. He tried to attack the dYdX SUSHI market in a similar way two weeks ago, but was unsuccessful. YFI open interest is higher on dYdX than any other exchange. We did take action to increase YFI’s initial margin ratio before the price crashed, but were ultimately unsuccessful in fending off the attack. The attacker withdrew a large amount of USDC from dYdX before the price collapsed. The price collapse of YFI on the spot market appears to be a deliberate attack on large open interest on dYdX, and we are still communicating with centralized exchanges. This information strongly leads me to believe that this is a market manipulation by a well-funded attacker to deplete dYdX’s insurance pool. We will disclose and share all relevant information with law enforcement agencies.

In addition, Antonio announced a series of updates about dYdX, including: 1. Market updates will become easier, making the market more liquid; 2. Maintenance margin will be updateable (not in v3); 3. Maintenance margin Will vary with position size (not available in v3); 4. The liquidation engine will be redesigned; 5. If the account has any negative equity, withdrawal requests will not be accepted (until the relevant position is liquidated).