dYdX DEX Enters New Phase with Public Testnet on Cosmos Network
dYdX, the decentralized exchange (DEX), has made a significant move by launching a public testnet on the Cosmos network, as announced by the exchange's development team on July 5. This development represents the completion of the fourth milestone out of a total of five, setting the stage for the future launch of the v4 mainnet.
In a departure from Ethereum, dYdX has chosen to build its own blockchain called dYdX Chain, which operates as a standalone Layer 1 blockchain utilizing the Cosmos ecosystem and the Tendermint proof-of-stake consensus protocol. Once the chain is operational, dYdX will introduce its v4 iteration on the network, effectively transitioning the project away from the Ethereum network, the press release says.
With the launch of the public testnet, users now have the opportunity to engage in trading activities such as placing market orders, generating private keys, and executing limit orders with advanced options. Initially, the testnet is available for bitcoin and ethereum markets, but the company has indicated plans to expand the network and include over 30 markets in the future.
Once the testnet phase concludes, the protocol's team will move forward with the implementation of the fifth milestone on their roadmap. This upcoming milestone will introduce stablecoins into dYdX and integrate support for Cosmos Inter-Blockchain Communication, granting Cosmos users access to the dYdX app. Following the successful completion of this final milestone, the v4 version of dYdX is expected to be officially launched.
It is worth noting that dYdX has a history of rewarding active users. In the past, the platform has distributed retroactive airdrops, providing more than $10,000 worth of free tokens. Therefore, users participating in the testnet actions may have the chance to increase their chances to be eligible for a potential airdrop. For further information, interested individuals can refer to the provided article.
dYdX is a decentralized multifunctional trading platform that offers various financial products, including margin trading, leveraged trading, spot trading, and perpetual contracts. The platform combines a centralized order book and matching engine, enabling market makers to place limit orders. Additionally, dYdX provides traders with a portfolio management tool, allowing them to monitor trades, claim trading rewards, and benefit from discounted fees based on trading volume.
With the introduction of version four, dYdX aims to eliminate its centralized order book and matching engine, transitioning the exchange into a fully decentralized platform. This transformation will be achieved by running certain components of the app on a separate dYdX network, which will have its own validators and enable the storage of the order book on-chain.
dYdX has raised a total funding of $87M over 4 rounds from such renowned investors as a16z, Paradigm, Polychain among others.
