Investors might not do anything yet wait on Dec. 7 when dYdX dropped together with Binance.US and Coinbase because of an AWS problem.
An Amazon.com Web Solution (AWS) blackout on Dec. 7 required the decentralized exchange dYdX to halt operations, raising questions over the reliance on centralized solutions by DeFi protocols.
AWS is just one of the most commonly utilized cloud solutions worldwide and also a significant amount of decentralized infrastructure uses it. AWS supplies web servers, storage space, networking, remote computer, e-mail, mobile development, as well as security for websites.
dYdX issued an upgrade by means of Twitter on Dec. 8 acknowledging that its dependence on a central web service like AWS is troublesome. It vowed to improve truth decentralization of its operations, yet did not state how.
“Unfortunately, there are still some parts of the exchange that rely on centralized services (AWS in this case). We are deeply committed to fully decentralizing and this remains one of our top priorities as we continue to iterate on the protocol.”
Centralized exchanges (CEX) Binance.US and also Coinbase likewise saw service interruptions as a result of the AWS issue.
dYdX is the 11th biggest DeFi application on the Ethereum Network according to Dappradar. It does about $1.5 billion in day-to-day trading volume. As a decentralized exchange (DEX) it requires no know-your-customer (KYC) protocol and also works out all deals via clever contracts.
Updates on the dydx standing website showed that while attempting to treat the issue, the team was incapable to access crucial elements of its back end as a result of the outage. The condition from 9:20 pm UTC read:
“We are looking into whether we can just have all of those orders cancel, however the AWS outage is preventing us from currently being sure if that’s possible.”
dYdX token is down about 10% over the past 1 day, trading at $8.63 according to Coingecko.
