The Cosmos blockchain will host the Ethereum-based, decentralized trading platform called dYdX. This was the team that created the announcementThis morning led to a positive reaction from DYDX, its governance token.
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This token is trading at $1.50, with an 8% profit for the USDT trading pair over the past 24 hours and a 10% profit for the ETH trading pair. In the interim, larger cryptocurrency are still facing challenges and might continue to consolidate their levels.
The standalone blockchain is part of this platform’s fourth iteration, dYdX v4. The team behind the project expects to “open source dYdX V4 by the end of 2022” but, as they clarified, this iteration will provide “critical” improvements so it will “require months of heads-down development”.
Because of Cosmos’ security, customization, cross-chain capabilities, and leverage its scaleability, the team behind Ethereum-based trading platforms chose it and its Proof-of-Stake Tendermint consensus.
The platform can process more transactions and possibly increase its market share and number of users while it moves to the next stage, full decentralization. This is what the team behind this project stated:
For the V4 protocol, full decentralization is a requirement. Decentralization is the same as decentralization in its most decentralized part. It is essential that V4 be both decentralized and performant.
The ultimate objective, according to the announcement, is to make dYdX “one of the largest exchanges in all of the crypto”. This requires an infrastructure capable of processing a lot of transactions and supporting the exchange’s engine without compromising its level of decentralization.
Project team added:
Although it is still in its infancy, we feel this will give dYdX the most competitive product experience compared to central exchanges.
Are dApps better left than right?
Fourth dYdX version will include new features such as off-chain orders books and trading gas fee free. It will have a fee structure similar to those of central exchanges. The governance token DYDX will continue to be the main component of the exchange’s governance model.
Although the announcement was widely welcomed by a section of the crypto community the market appears to have responded positively. Others have raised concerns that a separate version of dYdX would not be secure, composable, or offer design flexibility.
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Analyst Ryan Watkins saidHere are the details of the dYdX Announcement:
While I understand the desire for sovereignty and the need to scale more quickly, I’m not convinced why an app-chain is the best path forward. The Ethereum ecosystem is risky because it means you lose security and compatibility (instead of deploying on Starknet).
