dYdX Trading Releases Open-Source Code for dYdX Chain
dYdX Trading, the developer of the decentralized derivatives exchange dYdX, has made the open-source code for its independent blockchain, called dYdX Chain, available to the public. This release marks the launch of dYdX V4, an upgraded version of the derivatives exchange. According to Antonio Juliano, the CEO of dYdX Trading, the new blockchain brings transparency and security to derivatives trading by allowing users to control the exchange through code. The upgrade involves a transition from an Ethereum-based layer-2 blockchain to a Cosmos-based proof-of-stake protocol governed by DYDX token holders.
Governance Proposal and Mainnet Launch
dYdX Trading has introduced the code as a governance proposal that will require approval from DYDX token holders and support from third-party validators, nodes, and community contributors. The existing dYdX exchange will continue to run alongside the dYdX Mainnet for an undisclosed period of time. The testnet for dYdX Chain has been operating smoothly since its launch in March and has undergone several upgrades. An audit conducted by Informal Systems found no critical errors in the open-source code.
Transition to a Public Benefit Corporation
dYdX Trading recently announced its transition to a Public Benefit Corporation (PBC). As a PBC, the company aims to generate profits while also benefiting society and the environment.
Laying the Foundation for a Permissionless Platform
dYdX Chain is designed to be permissionless, allowing users from anywhere in the world to access it. However, the current version of dYdX blocks U.S. users and citizens of countries under U.S. economic sanctions, such as Cuba, Iran, North Korea, and Myanmar. The new version of the protocol will also not be available to U.S. users. dYdX Trading has no control over the validators and cannot enforce how the open-source code is used. However, the license allows for revocation if the code is used unlawfully.
Hot Take: dYdX Chain Revolutionizes Derivatives Trading
dYdX Trading’s release of the open-source code for dYdX Chain marks a significant milestone in the world of decentralized derivatives trading. By transitioning to a Cosmos-based proof-of-stake protocol, dYdX brings transparency and security to the market. The governance proposal and upcoming launch of the dYdX Mainnet demonstrate the commitment to community participation and decentralization. Additionally, dYdX Trading’s transition to a Public Benefit Corporation showcases its dedication to creating positive social and environmental impact. With its permissionless design, dYdX Chain opens up derivatives trading to users worldwide, although certain restrictions apply. Overall, dYdX Chain is set to revolutionize the derivatives trading landscape by empowering users and promoting transparency.
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