dYdX Releases Cosmos-Based Network Code in Decentralization Drive; Mainnet Launch Slated
Summary:
Cryptocurrency exchange dYdX has released the open source code for its new Cosmos-based network, a move aimed at decentralizing its order book. The code's release is a step towards a mainnet launch, coordinated by dYdX's operational branch, dYdXDAO. DeFi enthusiasts worldwide will be able to operate the new infrastructure once the mainnet launch is completed. Details of the staged launch phases are outlined in posts from the dYdX Operations subDAO.
On October 23rd, dYdX, a major non-custodial cryptocurrency exchange, made its new Cosmos-based network code publicly available as revealed in their blog post. The released source code encompasses various key components including the protocol and order book. The objective of this release is to facilitate a smooth transition for the mainnet launch coordinated by dYdX's operational SubDAO, dYdXDAO.
Currently considered among the top non-custodial crypto exchanges, dYdX boasts a daily trading volume exceeding $2.6 billion, says Coingecko. Despite its size, it uses a centralized order book to pair market makers with traders, thus casting doubts over its decentralization claims. The introduction of the new Cosmos-based chain by the dYdX team is an effort to decentralize the order book, thus ensuring full decentralization of the protocol. They began trialling the new network on a testnet from July 5, while their present operations are based on StarkEx, an Ethereum layer-2 solution.
Related: Evmos, Swing, Tashi, Wormhole pool their efforts to address the liquidity problems of Cosmos.
According to the blog post dated October 23rd, the debut of the new code is meant to empower DeFi enthusiasts worldwide to operate the dYdX infrastructure. Once the launch of the mainnet is completed, the development team at dYdX will cease any involvement with the backend of new dYdX Chain deployments. The exact date for the mainnet launch was not provided by the team. Readers were instead directed to a blog post from the operations team at dYdX for further details.
In a proposal proclaimed on October 4th by the dYdX Operations subDAO, the mainnet is intended to have a staged launch. Under the proposed alpha phase, token holders can stake their tokens to earn rewards, but transactions will not be permitted. The beta phase, on the other hand, will allow trading while still being open for further testing. Neither of these phases include a specified launch date in the announcement.
Published At
10/24/2023 6:10:00 PM
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