DeFi exchange platform dYdX (DYDX) recently announced plans to migrate to a new blockchain using Cosmos.
Founded in 2017 by a Coinbase alum, dYdX specializes in derivatives such as perpetual futures.
In June 2022, the platform announced that the new version (V4) powered by layer2 Ethereum StarkEx, will be developed as a standalone blockchain based on the Tendermint delegate Proof-of-stake consensus protocol and Cosmos SDK infrastructure.
Indeed, it was on the morning of this Tuesday that representatives of the dYdX platform revealed this imminent launch of an update. The announcement represents the implementation of a major step that will allow the decentralized derivatives platform to leave the Ethereum blockchain network.
According to dYdX, Cosmos, a technology that enables blockchains with strong cross-chain capabilities, is the ultimate solution for building the “best fully decentralized protocol.” “The fundamental problem with every L1 or L2 we could develop on is that none of them can handle even the throughput needed to run a first-class order book and matching engine,” the platform explains.
According to information released by the platform, by the end of September, dYdX will be able to run fully on Cosmos.
Thanks to this new network, teams of developers will be able to create their own native blockchains. They will need to use the Cosmos software development kit to do so, and then adapt them for their own use according to their preferences.