Crypto exchange dYdX has recently released the open source code for its new Cosmos-based network, also named dYdX. This announcement came through a blog post on October 23, where dYdX stated that the published code includes the “protocol, order book, front-end, and more.” The purpose of sharing the code with the public is to lay the foundation for a mainnet launch, which will be organized by the dYdX Decentralized Autonomous Organization (dYdXDAO) SubDAO on Operations.
dYdX is currently one of the largest non-custodial cryptocurrency exchanges, boasting a daily trading volume of over $2.6 billion according to Coingecko. However, it has been criticized for relying on a centralized order book that matches traders with market makers. This centralized aspect has led to doubts about dYdX’s true decentralization.
To address this concern and make the exchange more decentralized, the dYdX team has been working on developing a new Cosmos-based dYdX chain. By migrating to the Cosmos network, they aim to decentralize the exchange’s order book and remove control from the development team, making it a truly decentralized platform. In July 2023, they launched a testnet for the new network, marking a significant step towards their goal. Initially, dYdX operates on StarkEx, a layer-2 solution built on Ethereum.
The release of the open source code signifies a major milestone in the development of the dYdX chain. With this code, the dYdX infrastructure can be accessed and operated globally by DeFi enthusiasts. Furthermore, the dYdX development team emphasizes that once the mainnet launch is completed, they will no longer have any control over the infrastructure behind the new dYdX Chain. This ensures trust and decentralization within the ecosystem. However, an official launch date for the mainnet has not been announced yet. Interested individuals are encouraged to refer to the blog post from the dYdX Operations subDAO for more information.
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In another blog post on October 4, the dYdX Operations subDAO proposed a phased mainnet launch strategy. The alpha phase of the launch will enable token holders to stake their tokens and earn staking rewards. However, trading functionalities will not be available during this phase. The beta phase, on the other hand, will introduce trading capabilities while allowing further testing. Specific launch dates for each phase have not been provided.
The release of the open source code for the dYdX network is significant for the crypto community, as it signifies progress towards decentralization and increased transparency. It is expected that with the successful launch of the mainnet, dYdX will be able to provide a more decentralized and secure trading experience for its users.
Overall, the dYdX team’s efforts to create a Cosmos-based dYdX chain demonstrate their commitment to decentralization in the crypto space. By open sourcing the code and working towards a truly decentralized infrastructure, they aim to address the concerns regarding a centralized order book. As the launch of the mainnet approaches, more details will be shared, and the community can anticipate a new era for dYdX, with enhanced trust and transparency.
