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DYdX Trading released the open source code for the upcoming version 4, based on the Cosmos SDK.
A governance vote overseen by the dYdX Foundation will determine v4's transition to mainnet.
DYdX Trading, the lead developer of decentralized derivatives exchange dYdX, released the open source code for its upcoming version 4. This new version is based on the Cosmos SDK and lays the foundation for an independent blockchain designed to support decentralized exchanges.
The software architecture for the upcoming dYdX Chain is publicly accessible today. According to the official statement, mainnet implementation is still awaiting a governance decision led by the dYdX Foundation. This is expected to be completed by the end of this year.
If the proposal gets approval, all v4 components, from the order book to the matching engine, will become part of a community-managed decentralized project on a standalone blockchain, secured by audited smart contracts.
dYdX, developed using StarkEx, an Ethereum Layer 2 scaling solution, is currently the largest decentralized derivatives trading platform with daily trading volumes above $1 billion . The transition to a Cosmos-based blockchain was initially announced as part of the v4 update, and software development has now been completed.
The new network aims to offer transparent and secure derivatives trading, operated solely by code and governed by its user community.
Plans to further decentralize the project
Beyond the blockchain transition, dYdX Trading plans to hand over control of various protocol components and stop collecting trading fees. Governance and decision-making responsibilities will be transferred solely to the dYdX stakeholder community and ecosystem participants.
“The release of dYdX Chain software marks the full decentralization of dYdX, and is a major step in our mission to democratize access to financial opportunities. With dYdX Chain, dYdX brings transparency and security to derivatives trading with an exchange run solely on code, and controlled by its users,” said dYdX Trading founder and CEO Antonio Juliano.
To mitigate potential disruption during the transition, the existing dYdX exchange, version 3, will continue to operate alongside v4 for an unspecified period of time.
