Ethereum on the DEX blacklist? – dYdX is a decentralized exchange protocol evolving on a second layer ofEthereum (ETH). This differs from most DEXs by being based on a system oforder book. However, dYdX will now turn a page in its history and leave the Ethereum ecosystem in favor of that of Cosmos.
dYdX sets sail on Cosmos
The protocol dYdX is one of the oldest decentralized exchange protocols in the Ethereum ecosystem. This one was born on the mainnet in October 2018, long before the advent of widespread automated market makers (AMM).
In April 2021, the protocol migrated to a second layer solution, based on the solution StarkEx. This allows him toincrease considerably his performancewhile taking advantage of the security of the Ethereum network.
However, the protocol now seems to want to move away from its historical network, to the benefit of the ecosystem. Cosmos.
Indeed, on June 22, dYdX announcement its desire to migrate to its own blockchain. In practice, dYdX V4 will be developed using the Cosmos SDK. This will operate a consensus in proof of stake based on Tendermint.
“ We are happy to announce that dYdX V4 will be developed as a standalone blockchain based on Tendermint consensus and built using Cosmos SDK. »
Therefore, the dYdX chain will have its own consensus and, therefore, its own validators. The latter will have to stake DYDX tokens to participate in the transaction validation process. In addition, they will be remunerated in DYDX for the work carried out.
Of course, this migration process will not happen overnight. Indeed, the developers of dYdX estimate that V4 will be deployed at the end of year 2022. More information will be released as it progresses.
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Performance, features…: everything that will change
In its announcement, dYdX explains its choice by pointing out the performance still limited of the ecosystem Ethereumboth on the mainnet and on the second layers.
Indeed, the current solution allows the DEX to process 10th of a trader per second and 1,000 order placements/cancellations per second. Performance too restricted, according to dYdX, which is now seeking to “move to higher orders of magnitude”.
Additionally, the migration to Cosmos will enable the platform to enable traders to trade without have to pay gas costs. Fees will still be applied to executed transactions. This model will be close to what is done on centralized exchange platforms.
Through this migration, dYdX also wishes improve one’s sovereigntynot depending on any external blockchain or system.
“Whether it’s creating additional functionality, such as spot trading, options, multi-collateral, or improving the core underlying technology, the dYdX community will now control every aspect of the technology and can create the best possible product experience. »
And the dYdX community in all this?
As we have just seen, dYdX highlights its desire to give the power to his community. A commendable will, but which will not have failed to make certain Internet users react.
In fact, as pointed out by James Spediacci on Twitter, dYdX never consulted his community about this migration.
A situation at least surprising coming from a protocol advocating the decentralization and sovereignty of its community. Indeed, the dYdX teams could very well have consulted the community regarding the migration of its platform via a governance vote.
Holders of the DYDX token could have spoken out about this migration. Therefore, the decision could have be taken in such a way decentralized and agree with the values carried by the protocol.
Some Internet users have even gone so far as to question the very usefulness of the token, if it is not used to obtain the opinion of the users of the protocol vis-à-vis such radical changes:
“So the token is not for governance and does not accumulate value? What is the point ? »
Such consultations have already taken place in the crypto ecosystem. In fact, a few weeks ago, ApeDAOthe governing body of the Yuga Labs ecosystem, turned to his community to seek his opinion about a potential migration out of Ethereum.
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The dYdX exchange says goodbye to Ethereum… to the delight of Cosmos
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