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dYdX unveils its chain’s open-source code ahead of mainnet launch

By:
on Oct 24, 2023
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  • dYdX Trading releases open-source code, paving the way for a new era of decentralization.
  • dYdX’s transition to Cosmos-based technology offers enhanced security and governance.
  • DYDX token holders will shape the dYdX’s future as it moves to a Cosmos-based chain.

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In a major development within the cryptocurrency space, dYdX Trading, the company behind the decentralized derivatives exchange dYdX, has made a significant move towards decentralization.

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The firm has released the open-source code for its upcoming independent blockchain, marking the initial phase of the eagerly anticipated mainnet launch of dYdX Chain.

dYdX transitioning from Ethereum to Cosmos

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The highlight of this transition is the shift from an Ethereum-based layer-2 blockchain to a Cosmos-based proof-of-stake protocol.

This move is not just about technical upgrades but also signifies a fundamental change in how the exchange operates.

dYdX’s founder and CEO, Antonio Juliano, emphasized that with the introduction of the dYdX Chain (dYdX V4), the dYdX Trading exchange is embracing full decentralization and community-based operation.

The company will relinquish control over the protocol and cease collecting trading fees. This approach aligns with the ethos of DeFi and grants users a more active role in the governance and operation of the exchange.

The transition is set to empower DYDX token holders, who will play a crucial role in decision-making through governance proposals and votes. This move toward decentralization is a significant step, particularly given the substantial trading volume on dYdX, with an average of a billion dollars traded daily.

The blockchain technology chosen for this transition, Cosmos, offers a robust foundation for interoperable and scalable blockchains. It enables independent Cosmos-based blockchains to interact seamlessly with one another. Moving to Cosmos is not just a technological shift; it’s a strategic decision aimed at enhancing security and scalability.

DYDX token surges after the news

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DYDX, the native token of the dYdX ecosystem, has experienced a notable price surge after the open-source code went live. Its price currently stands at $2.28 USD after experiencing a 10.32% price change over the past 24 hours.

DYDX token price chart

The price of DYDX is closely tied to the success and adoption of the dYdX exchange. It is expected to undergo a significant transformation with the transition to a Cosmos-based chain.

As the exchange moves toward decentralization and community governance, DYDX token holders are set to play an even more crucial role in the ecosystem; something that will likely shape the token’s future price movements.

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