dYdX Launches Decentralized Exchange on Cosmos Blockchain
Date: 2023-10-27 Author: Dima Zakharov Categories: BLOCKCHAIN
Significant Development in the World of Decentralized Finance
The developers of the dYdX project have made a significant contribution to the advancement of decentralized finance by launching their own L1 blockchain within the Cosmos ecosystem. This marks the fourth version of a decentralized cryptocurrency derivatives exchange operating on an autonomous blockchain. The key distinction of this version lies in the use of its proprietary blockchain, providing a higher degree of autonomy and control.
Transition to a New Phase: Genesis Block and Stress Testing
The development team has successfully formed the genesis block of the main network, which is a crucial step in deploying a new blockchain. Currently, the mainnet is in its alpha stage, with a primary focus on stress testing various system parameters. Over 60 validators have been introduced to ensure maximum security and network reliability.
Next Step: Beta Version Launch and Community Approval
The launch of the beta version is planned, but it requires community approval. This stage will enable trading operations to commence on the new platform. Community representatives and DAOs have participated in this significant moment after several years of development and testing.
Transformation of the Trading Platform: Eliminating Centralized Mechanisms
It has been reported that the new exchange will eliminate the centralized order book and order matching mechanisms. This signifies a shift towards a more decentralized trading system. The platform will also not utilize Automated Market Maker (AMM) algorithms, providing users with greater freedom in choosing trading strategies.
Evolution of the Monetary Unit: Transition to wethDYDX
As a result of the migration, the primary coin on the platform will be wethDYDX, which will retain the same management functions as the previous coin. This transition will provide users with more modern and efficient tools for managing their assets.
Response to Regulatory Pressure: dYdX Leaves Canada
In April of this year, under regulatory pressure, the decentralized exchange dYdX made the decision to exit Canada. This move underscores the challenges faced by cryptocurrency projects in the face of diverse regulatory regimes.
