The dYdX Derivatives Protocol Votes to Transition to Version 4
The governance system of the dYdX derivatives protocol has approved a proposal to transition to version 4 and adopt DYDX as the Layer 1 token for the project’s own blockchain. The vote, which received almost 100% community backing, concluded on Sep. 4 on the Snapshot platform. As a result of this decision, the project will migrate the DYDX token from Ethereum to a Layer 1 appchain in the Cosmos ecosystem. The proposal also includes the development of an Ethereum smart contract overseen by the dYdX Foundation to facilitate the transfer of DYDX tokens.
Main Breakdown:
- The dYdX derivatives protocol has ratified a proposal to transition to version 4.
- DYDX will become the Layer 1 token for the project’s own blockchain.
- The community backed the proposal with nearly 100% support.
- The DYDX token will be migrated from Ethereum to a Layer 1 appchain in the Cosmos ecosystem.
- An Ethereum smart contract will be developed to facilitate the transfer of DYDX tokens.
dYdX: Leading the Decentralized Derivatives Market
dYdX is a decentralized derivatives platform founded in 2018. It specializes in perpetuals trading, which are futures contracts without an expiration date. The platform has reported significant trading volume, with over $240 million in trading volume in the last 24 hours and a total trading volume exceeding $1 trillion since its launch in 2020.
Hot Take
The approval of the proposal to transition to version 4 and adopt DYDX as the Layer 1 token demonstrates the strong community support for dYdX. By migrating the DYDX token to a Layer 1 appchain, the project aims to enhance its scalability and efficiency. This development further solidifies dYdX’s position as a leader in the decentralized derivatives market.
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