diff --git a/Makefile b/Makefile
index a2a54ab7c..9c8a00e2d 100644
--- a/Makefile
+++ b/Makefile
@@ -178,7 +178,7 @@ test: test-unit
 test-all: check test-race test-cover
 
 test-unit:
-	@VERSION=$(VERSION) go test -mod=readonly -tags='ledger test_ledger_mock' `go list ./... | grep -v dex`
+	@VERSION=$(VERSION) go test -mod=readonly -tags='ledger test_ledger_mock' ./...
 
 test-race:
 	@VERSION=$(VERSION) go test -mod=readonly -race -tags='ledger test_ledger_mock' ./...
diff --git a/app/app.go b/app/app.go
index 0d105a861..e5f286eab 100644
--- a/app/app.go
+++ b/app/app.go
@@ -37,6 +37,7 @@ import (
 	servicemetrics "github.com/skip-mev/slinky/service/metrics"
 
 	v401 "github.com/neutron-org/neutron/v4/app/upgrades/v4.0.1"
+	v500 "github.com/neutron-org/neutron/v4/app/upgrades/v5.0.0"
 	"github.com/neutron-org/neutron/v4/x/globalfee"
 	globalfeetypes "github.com/neutron-org/neutron/v4/x/globalfee/types"
 
@@ -221,7 +222,7 @@ const (
 )
 
 var (
-	Upgrades = []upgrades.Upgrade{v401.Upgrade}
+	Upgrades = []upgrades.Upgrade{v401.Upgrade, v500.Upgrade}
 
 	// DefaultNodeHome default home directories for the application daemon
 	DefaultNodeHome string
@@ -1396,6 +1397,7 @@ func (app *App) setupUpgradeHandlers() {
 					MarketmapKeeper:     app.MarketMapKeeper,
 					FeeMarketKeeper:     app.FeeMarkerKeeper,
 					DynamicfeesKeeper:   app.DynamicFeesKeeper,
+					DexKeeper:           &app.DexKeeper,
 					GlobalFeeSubspace:   app.GetSubspace(globalfee.ModuleName),
 					CcvConsumerSubspace: app.GetSubspace(ccvconsumertypes.ModuleName),
 				},
diff --git a/app/upgrades/types.go b/app/upgrades/types.go
index d94491025..dfbce160c 100644
--- a/app/upgrades/types.go
+++ b/app/upgrades/types.go
@@ -21,6 +21,7 @@ import (
 
 	contractmanagerkeeper "github.com/neutron-org/neutron/v4/x/contractmanager/keeper"
 	cronkeeper "github.com/neutron-org/neutron/v4/x/cron/keeper"
+	dexkeeper "github.com/neutron-org/neutron/v4/x/dex/keeper"
 	feeburnerkeeper "github.com/neutron-org/neutron/v4/x/feeburner/keeper"
 	icqkeeper "github.com/neutron-org/neutron/v4/x/interchainqueries/keeper"
 	tokenfactorykeeper "github.com/neutron-org/neutron/v4/x/tokenfactory/keeper"
@@ -64,6 +65,7 @@ type UpgradeKeepers struct {
 	MarketmapKeeper    *marketmapkeeper.Keeper
 	FeeMarketKeeper    *feemarketkeeper.Keeper
 	DynamicfeesKeeper  *dynamicfeeskeeper.Keeper
+	DexKeeper          *dexkeeper.Keeper
 	// subspaces
 	GlobalFeeSubspace   paramtypes.Subspace
 	CcvConsumerSubspace paramtypes.Subspace
diff --git a/app/upgrades/v5.0.0/constants.go b/app/upgrades/v5.0.0/constants.go
new file mode 100644
index 000000000..1eeb344c5
--- /dev/null
+++ b/app/upgrades/v5.0.0/constants.go
@@ -0,0 +1,20 @@
+package v400
+
+import (
+	storetypes "cosmossdk.io/store/types"
+
+	"github.com/neutron-org/neutron/v4/app/upgrades"
+)
+
+const (
+	// UpgradeName defines the on-chain upgrade name.
+	UpgradeName = "v5.0.0"
+)
+
+var Upgrade = upgrades.Upgrade{
+	UpgradeName:          UpgradeName,
+	CreateUpgradeHandler: CreateUpgradeHandler,
+	StoreUpgrades: storetypes.StoreUpgrades{
+		Added: []string{},
+	},
+}
diff --git a/app/upgrades/v5.0.0/upgrades.go b/app/upgrades/v5.0.0/upgrades.go
new file mode 100644
index 000000000..9c5e46a57
--- /dev/null
+++ b/app/upgrades/v5.0.0/upgrades.go
@@ -0,0 +1,60 @@
+package v400
+
+import (
+	"context"
+	"fmt"
+
+	upgradetypes "cosmossdk.io/x/upgrade/types"
+	"github.com/cosmos/cosmos-sdk/codec"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+
+	"github.com/neutron-org/neutron/v4/app/upgrades"
+	dexkeeper "github.com/neutron-org/neutron/v4/x/dex/keeper"
+)
+
+func CreateUpgradeHandler(
+	mm *module.Manager,
+	configurator module.Configurator,
+	keepers *upgrades.UpgradeKeepers,
+	_ upgrades.StoreKeys,
+	_ codec.Codec,
+) upgradetypes.UpgradeHandler {
+	return func(c context.Context, _ upgradetypes.Plan, vm module.VersionMap) (module.VersionMap, error) {
+		ctx := sdk.UnwrapSDKContext(c)
+
+		ctx.Logger().Info("Starting module migrations...")
+		vm, err := mm.RunMigrations(ctx, configurator, vm)
+		if err != nil {
+			return vm, err
+		}
+
+		ctx.Logger().Info("Running dex upgrades...")
+		// Only pause dex for mainnet
+		if ctx.ChainID() == "neutron-1" {
+			err = upgradeDexPause(ctx, *keepers.DexKeeper)
+			if err != nil {
+				return nil, err
+			}
+		}
+
+		ctx.Logger().Info(fmt.Sprintf("Migration {%s} applied", UpgradeName))
+		return vm, nil
+	}
+}
+
+func upgradeDexPause(ctx sdk.Context, k dexkeeper.Keeper) error {
+	// Set the dex to paused
+	ctx.Logger().Info("Pausing dex...")
+
+	params := k.GetParams(ctx)
+	params.Paused = true
+
+	if err := k.SetParams(ctx, params); err != nil {
+		return err
+	}
+
+	ctx.Logger().Info("Dex is paused")
+
+	return nil
+}
diff --git a/app/upgrades/v5.0.0/upgrades_test.go b/app/upgrades/v5.0.0/upgrades_test.go
new file mode 100644
index 000000000..0a5d07207
--- /dev/null
+++ b/app/upgrades/v5.0.0/upgrades_test.go
@@ -0,0 +1,65 @@
+package v400_test
+
+import (
+	"testing"
+
+	"cosmossdk.io/math"
+	upgradetypes "cosmossdk.io/x/upgrade/types"
+	"github.com/stretchr/testify/suite"
+
+	v500 "github.com/neutron-org/neutron/v4/app/upgrades/v5.0.0"
+	"github.com/neutron-org/neutron/v4/testutil/common/sample"
+
+	"github.com/neutron-org/neutron/v4/testutil"
+	dexkeeper "github.com/neutron-org/neutron/v4/x/dex/keeper"
+	dextypes "github.com/neutron-org/neutron/v4/x/dex/types"
+)
+
+type UpgradeTestSuite struct {
+	testutil.IBCConnectionTestSuite
+}
+
+func TestKeeperTestSuite(t *testing.T) {
+	suite.Run(t, new(UpgradeTestSuite))
+}
+
+func (suite *UpgradeTestSuite) SetupTest() {
+	suite.IBCConnectionTestSuite.SetupTest()
+}
+
+func (suite *UpgradeTestSuite) TestUpgradeDexPause() {
+	var (
+		app       = suite.GetNeutronZoneApp(suite.ChainA)
+		ctx       = suite.ChainA.GetContext().WithChainID("neutron-1")
+		msgServer = dexkeeper.NewMsgServerImpl(app.DexKeeper)
+	)
+
+	params := app.DexKeeper.GetParams(ctx)
+
+	suite.False(params.Paused)
+
+	upgrade := upgradetypes.Plan{
+		Name:   v500.UpgradeName,
+		Info:   "some text here",
+		Height: 100,
+	}
+	suite.NoError(app.UpgradeKeeper.ApplyUpgrade(ctx, upgrade))
+
+	params = app.DexKeeper.GetParams(ctx)
+
+	suite.True(params.Paused)
+
+	_, err := msgServer.Deposit(ctx, &dextypes.MsgDeposit{
+		Creator:         sample.AccAddress(),
+		Receiver:        sample.AccAddress(),
+		TokenA:          "TokenA",
+		TokenB:          "TokenB",
+		TickIndexesAToB: []int64{1},
+		Fees:            []uint64{1},
+		AmountsA:        []math.Int{math.OneInt()},
+		AmountsB:        []math.Int{math.ZeroInt()},
+		Options:         []*dextypes.DepositOptions{{}},
+	})
+
+	suite.ErrorIs(err, dextypes.ErrDexPaused)
+}
diff --git a/x/dex/keeper/msg_server.go b/x/dex/keeper/msg_server.go
index 2b3bca666..1211cc57b 100644
--- a/x/dex/keeper/msg_server.go
+++ b/x/dex/keeper/msg_server.go
@@ -259,6 +259,12 @@ func (k MsgServer) UpdateParams(goCtx context.Context, req *types.MsgUpdateParam
 	return &types.MsgUpdateParamsResponse{}, nil
 }
 
-func (k MsgServer) AssertNotPaused(_ context.Context) error {
-	return types.ErrDexPaused
+func (k MsgServer) AssertNotPaused(goCtx context.Context) error {
+	ctx := sdk.UnwrapSDKContext(goCtx)
+	paused := k.GetParams(ctx).Paused
+
+	if paused {
+		return types.ErrDexPaused
+	}
+	return nil
 }