Insurance coverage active
dYdX v4 (dYdX Chain)'s assessment for RD-F-089 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
dYdX v4 has a native protocol insurance fund (x/insurance Cosmos module). At time of Oct 2025 incident the fund held ~$16M USDC; $462K compensation (2.85% of fund) was proposed from it, leaving the fund well-capitalized. The fund is funded from trading fees and protocol revenue. No third-party insurance coverage (Nexus Mutual, Sherlock, Unslashed) for v4 identified. Yellow: native protocol insurance fund exists and has functioned as designed (Oct 2025 compensation), which is materially better than zero insurance, but there is no independent insurer backstop. Per U2 protocol-specific note: this is NOT default-red — the fund's existence and demonstrated adequacy warrant yellow.
Sources #
- URLdYdX Chain October 2025 Incident: Compensation and Community UpdateOct 2025 compensation post — insurance fund size and usageretrieved 2026-05-17
- Contract loss mechanisms on dYdX ChainContract loss mechanisms — insurance fund descriptionretrieved 2026-05-17
Methodology #
Determine whether active coverage on Nexus Mutual, Unslashed, Sherlock, or equivalent is in force; record cover size in USD.
See the full factor methodology and distribution across all protocols →