According to Coincu, dYdX, a leading cryptocurrency derivatives platform, has announced its strategy to drive the next wave of DeFi derivatives growth. The founder, Antonio, expressed his belief that the DEX is primed to lead a 100x surge in DeFi derivatives, focusing solely on this sector and forgoing diversification into other products. DeFi currently represents just 2% of cryptocurrency derivatives trading volume but is projected to undergo exponential growth.
The launch of the dYdX Chain marks the beginning of this transformative journey, with Antonio pledging substantial 10x improvements to its product offerings by 2024. Founded in 2018, the DEX has become one of the largest derivatives exchanges in the crypto market, consistently favored by users. The forthcoming v4 update is expected to shift the perception of its tokens as less suitable for long-term holding.
On September 4, the community overwhelmingly supported a proposal initiated by Wintermute on the Snapshot platform to migrate the DYDX token from Ethereum to a Layer 1 appchain within the Cosmos ecosystem, currently in testing. The proposal also outlines plans for an Ethereum smart contract, overseen by the dYdX Foundation, to facilitate a seamless migration of DYDX from Ethereum to the new chain. Antonio reaffirmed the platform's commitment to maintaining the current token distribution model, with no plans for additional inflation to compensate validators on the chain, highlighting the token's inflation reduction of over 60%.
