Decentralized Exchange dYdX Launches Layer-1 Blockchain
dYdX, a decentralized cryptocurrency exchange, has introduced its layer-1 blockchain with the creation of its genesis block. This new blockchain will operate using native DYDX tokens. The dYdX Chain will distribute all fees to validators and stakers in USD Coin (USDC), including trading fees and gas fees for DYDX or USDC transactions.
The Technology Behind dYdX Chain
dYdX Chain is built using Cosmos’ software development kit and utilizes CometBFT as its consensus protocol. Validators stake DYDX to secure the blockchain and carry out governance operations.
dYdX Chain’s Launch Collaborators
The launch of the dYdX Chain involved several companies, including dYdX Ops SubDAO, dYdX Foundation, Noble XYZ, Circle, and Coinbase.
dYdX Token Transition and Expanded Utility
Before launching its native layer-1 chain, dYdX operated on Ethereum’s layer-2 protocol. However, with the transition to its own chain, the community voted to adopt DYDX as the L1 token of the dYdX Chain. The DYDX token is now used for staking, securing the network, and assisting with governance on the dYdX Chain.
Governance on the dYdX Chain
The governance module of the dYdX Chain allows any holder to create a proposal with a deposit. Spam proposals are combated through minimum deposit thresholds and voting mechanisms with veto powers. Only staked DYDX tokens can be used for chain governance. Validators inherit the voting weight of stakers unless specific stakers choose to vote individually.
Hot Take: dYdX Chain Launches with Native DYDX Tokens
dYdX has officially launched its layer-1 blockchain, the dYdX Chain, which operates using native DYDX tokens. This launch marks an important milestone for dYdX as it transitions from Ethereum’s layer-2 protocol to its own blockchain. The dYdX Chain aims to provide a decentralized and open-source platform for trading and governance. With the distribution of fees in USD Coin and the expanded utility of the DYDX token, dYdX is poised to offer a more accessible and efficient ecosystem for its users. As the crypto industry continues to evolve, the launch of the dYdX Chain demonstrates the growing importance of decentralized exchanges and blockchain technology.
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