DeFi Protocol dYdX Lays Off 35% of Workforce

Antonio Juliano, the founder and CEO of the decentralized finance (DeFi) protocol dYdX, announced today that the project has laid off 35% of its “core team.”

I’ve made the incredibly difficult and sad decision to move on from 35% of the dYdX team

More thoughts on why and what this means tomorrow, but for today a goodbyehttps://t.co/ssFAjXPE0J

— Antonio (@AntonioMJuliano) October 29, 2024

Launched in July 2017, dYdX established itself as one of the leading decentralized exchanges for trading crypto derivatives. It offers over 35 cryptocurrencies, including BTC, ETH, DOGE, and ADA. The project’s team is developing a delegated proof-of-stake (DPoS) layer-1 blockchain called the dYdX Chain, built with Cosmos SDK (software development kit).

dYdX Reduces Headcount

In a blog post titled “Letting Go,” dYdX’s founder reckoned that the exiting employees played key roles in aiding the company’s growth over its seven-year existence. Although Juliano did not reveal whether laid-off workers will receive severance packages, he urged them to build new things “with the learnings, inspiration, and relationships” they have amassed while working with the dYdX team.

Highlighting how the remaining workforce will function, Juliano stated:

“We now have the team we need going forward. [. . .] The decision to let go was a realization that the company we’ve built is different from the company dYdX must be. We will move forward with clarity and renewed passion. We will create amazing things.”

It is worth noting that Juliano stepped down from his role as dYdX CEO six months ago. On October 10th, he returned to his leadership role in the project.

As Juliano left dYdX’s leadership role, the project’s total value locked (TVL) depreciated from its 2024 peak of over $528 million to $287 million. Rival platform Hyperliquid has snatched most of the market share, as it currently has $866 million in TVL. With a pledge to continued growth, dYdX aims to reclaim more of its market share.

More Crypto Layoffs

Like dYdX, the Ethereum software company ConsenSys reduced its workforce by 20%. The firm attributed the layoff to regulatory crackdowns, especially the continuous probe from the United States Securities and Exchange Commission (SEC).