Users will send their Ethereum-based DYDX tokens to the open sourced dYdX bridge contract. The contract receives and permanently locks the Ethereum-based DYDX tokens.
The bridge then sends a wrapped version of the Ethereum-based DYDX token (“wethDYDX”) to the user on a 1-1 proportional basis on Ethereum
As the last part, dYdX Chain validators can also read and ingest the information in the Ethereum Smart Contract such that corresponding DYDX can be distributed to users by validators on the dYdX v4 Chain once there is confirmation that Step 1 above is complete and the Ethereum-based DYDX is permanently locked in the Ethereum Smart Contract.