Democratizing access to crypto opportunities. In the decentralized finance sector, the dYdX project is a pioneering solution. Since its launch in 2017, this dedicated derivatives platform has continued to evolve with the cryptocurrency sector. A dynamic that has led to strategic choices regularly approved by a demanding community. The watchword of its developers remains the same every time: total and effective decentralization. The latest step in this direction is the launch of a V4 to be tested urgently.
Le Journal du Coin brings you this promotional article in collaboration with dYdX.
dYdX continues on the road to decentralization
Since its launch the dYdX project has undergone many necessary changes. This derivatives platform was launched in 2017 as an Ethereum network protocol. At the time, the only services offered were options trading and leveraged positions. But that was (long) before!
Indeed, the cryptocurrency sector is constantly evolving. This reality requires its historical projects to keep up with the times, in order to stay in the race. A strategy that dYdX is rapidly applying. By 2021 its trading platform was deployed on a layer 2 network network. A strategic decision to escape the congestion of layer 1 Ethereum. A move that immediately met with enormous success.
But this successful association with Starkware still lacks an indispensable ingredient for dYdX project members: full and effective decentralization. In their view, « events in the global economy over the past year have only strengthened the need for open, transparent and unauthorized financial products. » A new ambition behind deployment of a V4 currently undergoing testing.
The objective of the dYdX platform is very clear. It is to compete with centralized exchanges (CEX) such as Binance while retaining a highly decentralized character (DEX).
dYdX deploys its V4 testnet in the Cosmos ecosystem
The official announcement took place on July 5. On this now historic date, the V4 dYdX qthat everyone is waiting for unfolds in the form of a testnet accessible to all. A very important milestone, since its development was initiated more than a year ago. The major challenge in this case, migration to the Cosmos ecosystem able to offer a network based on its Tendermint technology.
An operation carried out within the framework of a roadmap including the deployment of this testnet is the « fourth stage ». validated. The previous step was to lay the foundations for this full-scale exercise. The fifth and final stage announced by dYdX is setting up its main network (mainnet). The date has yet to be determined.
« Stage 4 marks the completion of the functionality required to launch our public testnet, which will include a larger number of validators running our software (over 40). This public testnet will launch with Bitcoin and Ethereum markets, but we expect the open source software to include more than 30 markets or so as the network is upgraded! »
dYdX
What will become of the DYDX cryptocurrency?
An ongoing migration that raises a number of questions, such as the future of the DYDX cryptocurrency. This governance token deployed on the Ethereum network in August 2021 in the form of an ERC-20 could well have a new destiny. Indeed, a decision will have to be made about it by the project’s community. And this could well take the form ofa « protocol token » mutation for its dYdX Chain.
Because the vocation of a native cryptocurrency linked to a layer 1 blockchain is much broader than a simple governance token. Particularly when this network is based on Proof of Stake (PoS) consensus which implies a safeisation by staking. Reason why « the dYdX community could choose to use the DYDX governance token from its v3 as the L1 cryptocurrency of the dYdX Chain. »
If, however, a community vote were to confirm the mutation, the DYDX token would then have to « be migrated from the Ethereum network to the dYdX Chain. » An eventuality already anticipated by those responsible for the dYdX project.
In fact, they explain that they have commissioned the development of a smart contract to deploy « a one-way gateway ». for this purpose. But also « open-source code so that others can use it to implement a user interface to interact with this smart contract. »
It is therefore possible to test this new, highly improved version of the dYdX platform in real time. This procedure is described in detail in a recent update, which marks the end of the first test period from August 7. But this deadline also marks the opening of a new second test period since August 10 at 17:00 UTC. It comes with the promise of a scheduled release of « more features that traders know and love. » Quite a program!
The facts, access to this test phase requires first and foremost connect a wallet to the dYdX Chain to generate private keys. Only then will it be possible to claim « testnet funds » directly through the faucet. A procedure that enables the collection of fake USDC stablecoins for use in the various services on offer.
This second test version includes some interesting updates. It will now be possible to test the ensemble of the 30 markets offered by dYdXin addition to BTC and ETH. But also from receive governance fees linked to this testnet (testnet_reward_token) as and when it trades. All with a dedicated option for trading fees. This gives a clearer idea of this platform’s new-generation services.
Participate in the second round of the dYdX crypto trading platform has at least two undeniable advantages. The first is access to all its derivatives-related functionalities in a totally secure environment. And the second is to actively participate in the evolution of a decentralized industry leader. This is to be achieved by ensuring a good command of its tools within the framework of future operations. So there’s no longer any question of hesitating…