The DYDX proposal to "close the existing security staking module" has been approved

ChainCatcher message, the DYDX proposal "Closure of the Existing Security Staking Module (SSM)" DIP 17 has been approved. Previously, the dYdX security staking module allowed users to stake DYDX to provide insurance capabilities in the event of liquidity shortages in the protocol, and this module will be closed. The remaining rewards allocated to the security staking module will not be distributed but will accumulate in the rewards treasury, which can be managed by the community.

Currently, the 383,562 DYDX allocated to DYDX stakers will accumulate in the rewards treasury. The dYdX community can vote to redirect DYDX from the rewards treasury based on short-term locking requirements. Additionally, if necessary, further proposals can be submitted to return DYDX to the community treasury. Research by the team indicates that SSM is not an effective insurance fund due to the actual difficulty of cutting SSM, as well as the lower selling price of DYDX Token during liquidity shortage events due to market spreads and lack of liquidity. (Source link)