DYdX Trading Releases Open-Source Code for dYdX Chain v4
DYdX Trading, the developer behind the decentralized derivatives exchange dYdX, has released the open-source code for its upcoming version 4. This new version is built on the Cosmos SDK and serves as the foundation for an independent blockchain specifically designed to support the decentralized exchange.
Mainnet Deployment Pending Governance Vote
The software architecture for dYdX Chain was made publicly accessible today. However, the deployment of the mainnet is still pending a governance vote led by the dYdX Foundation. The vote is expected to be finalized by the end of this year.
dYdX Chain: A Decentralized Community-Governed Project
If approved, all components of version 4, including the order book and matching engine, will become part of a decentralized project governed by the community on a self-contained blockchain. The security of this blockchain will be ensured through audited smart contracts.
dYdX’s Transition to Cosmos-Based Blockchain
dYdX, currently the largest decentralized derivatives trading platform with a daily trading volume exceeding $1 billion, was developed using StarkEx, an Ethereum Layer 2 scaling solution. The transition to a Cosmos-based blockchain was announced as part of the version 4 update, and now the software development has been completed.
A Transparent and Secure Derivatives Trading Platform
The new dYdX Chain aims to provide transparent and secure derivatives trading, operated solely by code and governed by its user community.
Further Decentralization Plans
In addition to transitioning to a new blockchain, dYdX Trading plans to cede control over various protocol components and discontinue the collection of trading fees. Governance and decision-making responsibilities will be transferred entirely to the dYdX community and ecosystem participants.
“The release of dYdX Chain software marks the full decentralization of dYdX, a significant step in our mission to democratize access to financial opportunity. With the dYdX Chain, we bring transparency and security to derivatives trading, creating an exchange that is run solely by code and controlled by its users,” said Antonio Juliano, the founder and CEO of dYdX Trading.
To ensure a smooth transition, the existing dYdX exchange version 3 will continue to operate alongside version 4 for an unspecified period.
Hot Take: DYdX Trading Releases Open-Source Code for Its Upcoming Version 4
DYdX Trading has taken a significant step towards decentralizing its platform with the release of the open-source code for version 4. This version, based on Cosmos SDK, will lay the foundation for the dYdX Chain, an independent blockchain designed to support decentralized derivatives trading. The mainnet deployment is still pending a governance vote led by the dYdX Foundation, but if approved, it will bring transparent and secure trading operated solely by code. Additionally, DYdX Trading plans to transfer control over protocol components and decision-making to its community. This move signifies DYdX’s commitment to democratizing financial opportunity.
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