The dYdX crypto exchange has recently made a significant announcement. In an Oct. 23 blog post, they revealed that they have published the open-source code for their upcoming Cosmos-based network, which shares the same name as the exchange itself. This marks a significant milestone for dYdX and showcases their commitment to innovation and transparency in the crypto space.
The post mentioned that the newly released code incorporates essential components such as the “protocol, order book, front-end, and more.” Its publication aims to prepare for a mainnet launch, overseen by the dYdX’s Decentralized Autonomous Organization (dYdXDAO) SubDAO on Operations.
1/ It’s finally here 🎉
Today, we’re proud to present and fully open-source the completed dYdX Chain!
This is the next chapter for dYdX and we’re so excited that it’s here.
Let’s get into the details:https://t.co/ydil2jkqJs
— dYdX (@dYdX) October 24, 2023
DYdX stands as one of the largest decentralized cryptocurrency exchanges, boasting a remarkable daily trading volume of over $2.6 billion, according to CoinGecko. However, it relies on a centralized order book for matching traders with market makers. Due to this reliance on an order book, some perceive DYdX as lacking true decentralization.
The dYdX’s team is currently establishing a new Cosmos-based dYdX’s chain, aiming to decentralize the exchange’s order book. This move would transfer protocol control from the development team to a truly decentralized system. On July 5, they initiated a testnet for the newly developed network. It’s worth noting that DYdX currently operates on StarkEx, an Ethereum layer-2 solution.
DYdX’s Global DeFi Expansion Plans
The Oct. 23 post revealed that the upcoming code will enable dYdX infrastructure to operate globally for dedicated DeFi enthusiasts. Upon completing the mainnet launch, the dYdX development team will no longer be responsible for managing any aspect of the infrastructure supporting the new decentralized exchange Chain.
However, they have not disclosed an official release date for the mainnet. Instead, readers are encouraged to refer to the dYdX Operations subDAO blog post for further details. In a position published on October 4th, the dYdX Operations subDAO put forward a plan for the phased launch of their mainnet.
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According to their proposal, the first phase, called alpha, will allow token holders to stake their tokens and earn staking rewards; however, trading will not yet be possible during this phase. The subsequent beta phase will introduce trading functionality and facilitate further testing. Unfortunately, the post did not specify any dates for either of these stages.