The dYdX community has recently decided to take action to strengthen the security of the decentralized crypto exchange (DEX) in response to a surge in trading activity. The community voted to stake 20 million DYDX tokens, worth over $61 million, to enhance the platform's safety measures.

The proposal to stake the tokens received a significant amount of support, with 91.7% of the votes in favor. This decision allows the tokens to be entrusted to the liquid staking protocol Stride. The move comes as the DEX has seen a rapid increase in trading activity, with over $140 million USDC currently held in dYdX v4, and approximately $100 million of that amount arriving in the past week alone.

The community's decision to stake the tokens aims to protect the network from potential control attacks, such as a 51% attack, where a malicious entity gains control over a significant portion of a blockchain's hashing power, thereby manipulating the network.

The dYdX network architecture requires safeguards to prevent scenarios where an attacker could potentially halt on-chain operations with just one-third of the voting power. Furthermore, with two-thirds of the voting power, malicious actors could potentially misuse user deposits and community assets within the dYdX chain. To counter such threats, the community recognized the importance of decentralizing voting power to prevent exploitation.

The staking rewards on the DEX, founded by Antonio Juliano, are denominated in the stablecoin USD Coin (USDC) and are generated from the fees users pay to trade on the protocol. By leveraging Stride's mechanism, DYDX stakes will automatically increase over time as rewards are recompounded. However, the staking service incurs a 7.5% fee on the staked position.

As of the latest data from DefiLlama, dYdX's total value locked on-chain stands at $504.48 million, highlighting its significant presence within the decentralized finance (DeFi) landscape. The decision to stake the tokens underscores the community's commitment to reinforcing the security and resilience of the DEX amidst its growing prominence and trading activity.