dYdX V4Micro-cap

dYdX V4 receives a B- risk grade (31/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — well-funded with $87M raised, but the $9M insurance fund drain proved that targeted manipulation is a real and repeatable threat A perpetual futures exchange running on its own Cosmos blockchain with up to 50x leverage. It holds $300M in deposits and raised $87M. Its C+ grade reflects the risk that validators who run the chain also see your orders, creating opportunities for front-running, plus a real $9M insurance fund drain from market manipulation in 2024.

The key risks identified for dYdX V4 are: (1) In November 2024, attackers deliberately manipulated prices to trigger liquidations and drained $9M from the insurance fund. This was not theoretical. It happened (2) Validators both run the blockchain and match your trades. They see orders before execution, creating temptation to front-run or manipulate the order book (3) If the chain halts during a market crash, all positions freeze but prices keep moving on other exchanges. When trading resumes, mass liquidations hit at once, amplifying losses

dYdX V4 scores 31/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 8/20, Oracle Surface: 0/10, Documentation Gaps: 2/10, Track Record: 3/15, Scale Exposure: 5/10, Regulatory Risk: 3/10, Vitality Risk: 7/10. The highest risk area is Vitality Risk at 7/10.

Among 53 rated Derivatives protocols on Hindenrank, dYdX V4 ranks #6 by safety (lowest risk score = safest). Its 31/100 risk score and B- grade place it among the safer Derivatives protocols.

dYdX V4 scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.