dYdX Trading, the U.S.-based company behind the popular decentralized derivatives exchange dYdX, has released the open-source code for its independent blockchain to the public. The code is available as a governance proposal that will seek approval from DYDX token holders and support from third-party validators, nodes, and community contributors.
1/ It’s finally here 🎉
Today, we’re proud to present and fully open-source the completed dYdX Chain!
This is the next chapter for dYdX and we’re so excited that it’s here.
Let’s get into the details:https://t.co/ydil2jkqJs
— dYdX (@dYdX) October 24, 2023
The new blockchain, called dYdX Chain, is a major upgrade (dYdX V4) of the existing dYdX exchange, which currently runs on a layer-2 solution based on Ethereum. The upgrade will enable dYdX to transition to a Cosmos-based proof-of-stake protocol, which will offer faster transactions, lower fees, and more scalability.
dYdX Trading Steps Into the Future with New Feature
The dYdX Chain will also be secured and governed by DYDX token holders, who will have the power to vote on network parameters and upgrades. The dYdX Chain testnet was first launched in March this year and has undergone several improvements since then.
The existing dYdX exchange will not be affected by the dYdX Chain launch and will continue to operate for some time. However, users will be able to migrate their funds and positions to the new chain once it is live.
The new chain will also be permissionless, allowing users to access it from anywhere in the world. However, the new chain will not be available to U.S. users, as dYdX Trading has no control over the validators and nodes that run the network. The company has also stated that it will only provide technical support to non-U.S. users and that it can revoke the open-source license if it is used for unlawful activity.
The launch of dYdX Chain marks a significant milestone for dYdX Trading, which recently announced its transition to a Public Benefit Corporation (PBC). A PBC is a type of company that balances profit with social and environmental impact.
dYdX Trading aims to bring transparency and security to derivatives trading with an exchange that is run solely by code and controlled by its users.