An Amazon Web Service (AWS) outage on Tuesday forced the decentralized exchange dYdX (DYDX) to halt operations, raising questions over the reliance on centralized services by DeFi protocols. AWS is one of the most widely used cloud services in the world and a considerable number of decentralized infrastructure use it. AWS offers servers, storage, networking, remote computing, email, mobile development and security for websites. dYdX issued an update via Twitter on Wednesday, acknowledging that its reliance on a centralized web service like AWS is problematic. It pledged to improve the true decentralization of its operations but did not state how.Centralized exchanges (CEX) Binance.US and Coinbase also saw service outages due to the AWS issue.dYdX is the eleventh biggest DeFi app on the Ethereum network, according to Dappradar. It does about $1.5 billion in daily trading volume. As a decentralized exchange (DEX), it doesn’t have a know-your-customer (KYC) protocol and settles all transactions via smart contracts. Updates on the dYdX status portal showed that while trying to remedy the problem, the team was unable to access key elements of its back end due to the outage. The status from 9:20 pm UTC read:DYDX token is down about 10% over the past 24 hours, trading at $8.63, according to Coingecko.
22 June 2021
13 November 2021