In what is being seen as a significant move, dYdX, a layer-2 decentralized exchange (DEX), is open-sourcing its code as the platform prepares to implement v4. According to DeFiLlama, the exchange’s total value locked (TVL) is more than $353 million.
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according to an x Post On October 24, dYdX planned to finally work on its own standalone blockchain on Cosmos, moving from a layer-2 exchange that relies on Ethereum for security. The standalone blockchain, dYdX Chain, will be built using the Cosmos Software Developer Kit (SDK) and powered by the Tendermint proof-of-stake consensus algorithm.
In blockchain, projects often open source their code, allowing the public to examine how smart contracts operate. By going public, the protocol is helping to build trust with users and community members, increase security, and increase decentralization. This is especially important as DEXs handle sensitive financial data to facilitate trusted trading for all users.
dYdX founder Antonio Juliano has already done this Said The exchange developer, dYdX Trading Inc., is updating its charter to become a public benefit corporation. Exchange developers will work on an open project without profit. Although the platform will remain a for-profit company as a public benefit corporation (PBC), the founder and board will “act not only to maximize shareholder value but also to serve the public benefit.”
Nevertheless, the layer-2 protocol must gain approval from the community through a vote before the project can transition to v4 on Cosmos. Later, as Juliano said, dYdX will become completely open-source and decentralized, meaning the community will handle how the protocol evolves through a governance vote effective by the dYdX Foundation.
Will New Features Take The Token To 2023 Highs?
With V4, dYdX will create an off-chain order book and release an equally scalable matching engine that can process more transactions. In this way, the development team believes it will “dramatically” scale the protocol, with no trading fees, as it will run on Cosmos, a scalable layer-1 and interoperable blockchain.
Part of these enhancements include making dYdX more efficient in trading. After this, many features like batch execution and limit orders will go live. Additionally, dYdX v4 will support trading of new asset classes such as equities, commodities, and real estate, making the protocol more versatile.
Prior to this change, the exchange’s native token was trading near H2 2023 highs, given the price action. Notably, the token has broken the July to October 2023 resistance level with increasing volume. Also, looking at the developments in the daily chart, the bull bars are banded with the upper BB, pointing to a strong bullish trend. The area around $3.25 and $3.5, which represents Q1 2023 highs, could be an immediate target for optimistic bulls.
Feature image from Canva, chart from TradingView
source: www.newsbtc.com
