dYdX Open-Sourcing Code Ahead Of V4
dYdX, a layer-2 decentralized exchange (DEX), is making a significant move by open-sourcing its code as it prepares to implement version 4. The exchange currently has over $353 million in total value locked (TVL) according to DeFiLlama.
dYdX’s Plan for a Standalone Blockchain on Cosmos
dYdX intends to operate on its standalone blockchain, called dYdX Chain, which will be built using the Cosmos software developer kit (SDK) and powered by the Tendermint proof-of-stake consensus algorithm. This move will allow dYdX to migrate from being a layer-2 exchange reliant on Ethereum for security.
Increased Trust and Security Through Open Source
By open-sourcing its code, dYdX is demonstrating transparency and building trust with its users and community members. This move enhances security and decentralization, which is crucial for a DEX handling sensitive financial data and facilitating trustless trading.
dYdX’s Transition to Public Benefit Corporation
dYdX founder Antonio Juliano has announced that the exchange developer, dYdX Trading Inc., is updating its charter to become a Public Benefit Corporation. Although the platform will remain a for-profit company, the founder and board will prioritize public benefit rather than solely maximizing shareholder value.
The Path to Full Decentralization
dYdX’s transition to v4 on Cosmos requires community approval through a vote. Once approved, the protocol will become fully open-source and decentralized. The dYdX Foundation will facilitate governance votes, allowing the community to shape the protocol’s future.
New Features and Token Growth Potential
dYdX v4 will introduce an off-chain order book and a scalable matching engine to process more transactions. These enhancements aim to improve the protocol’s efficiency and scalability without charging trading fees. Additionally, dYdX will support trading new asset classes, expanding its versatility.
Hot Take: dYdX Token Reaches New Highs
The native token of dYdX is currently trading at its highest levels since the second half of 2023. The token has broken above resistance levels from July to October 2023, accompanied by increasing volumes. Bullish momentum is evident in the daily chart, with bull bars forming along the upper Bollinger Band. Optimistic bulls may target the price range around $3.25 and $3.5, representing Q1 2023 highs.
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