As part of the dYdX V4 upgrade, the well-known cryptocurrency derivatives exchange dYdX disclosed a significant intention to extend to its own Cosmos-based blockchain. With this choice, the Ethereum ecosystem has been expanded.
With a trading volume of almost $600 million in the previous 24 hours, according to CoinGecko data, dYdX, which was founded in 2018, is presently the biggest decentralised derivatives exchange. Currently, the exchange uses StarkEx, a Layer 2 scaling network for Ethereum created by Starkware.
The development team behind dYdX, dYdX Trading, announced plans to spin up its own chain using the Cosmos SDK on Wednesday. Projects in the Cosmos ecosystem use this software development kit.
dYdX founder Antonio Juliano stated:
“A major DeFi protocol we believe gives the dYdX ecosystem the best chance of having a network that could provide a long-term competitive product experience with centralised exchanges is the development of a decentralised, off-chain order book and matching engine and switching from Ethereum to a dYdX-specific chain.”
The project will become more decentralised and be managed by a wide group of validators rather than just the original team thanks to dYdX’s new chain, according to the statement. According to Juliano, the launch is anticipated to happen soon.
A dYdX spokeswoman declined to comment on the future of the company’s current StarkEx version when contacted by the Block about its ambitions. The representative replied, “We are still debating what will happen with the existing V3 system built on Starkware”.
Read more: Decentralized crypto derivatives exchange dYdX launches its beta version for iOS
