Ahead Of V4, dYdX Open-Source Code: Bull Run Incoming?
October 26 2023 - 9:00PM
NEWSBTC
In what is seen to be a monumental move, dYdX, a layer-2
decentralized exchange (DEX), is open-sourcing its code as the
platform prepares to implement v4. The exchange has a total value
locked (TVL) of over $353 million, according to DeFiLlama. dYdX
Open-Sourcing Code Ahead Of V4 According to an X post on
October 24, dYdX plans to eventually operate on its standalone
blockchain on Cosmos, migrating from being a layer-2 exchange
reliant 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 scrutinize how smart contracts operate. By going public,
the protocol is helping to build trust with users and community
members, boosting security and increasing decentralization. This is
especially important because the DEX handles sensitive financial
data to facilitate trustless trading for all users. Related
Reading: SHIB Will Lose Place To PEPE In New Bull Cycle, Analyst
Makes The Case Antonio Juliano, the founder of dYdX, has
already said the exchange developer, dYdX Trading Inc., is
updating its charter to become a Public Benefit Corporation. The
exchange developers will work on an open project without
benefiting. Though the platform will remain a for-profit company as
a Public Benefit Corporation (PBC), the founder and the board will
“not solely act to maximize shareholder value but act in the public
benefit.” Still, the layer-2 protocol has to receive approval from
the community through a vote before the project transitions to v4
on Cosmos. Afterward, as stated by Juliano, dYdX will become fully
open-source and decentralized, meaning the community will take over
how the protocol evolves through a governance vote effected by the
dYdX Foundation. Will New Features Propel The Token To 2023
Highs? With v4, dYdX will build an off-chain order book and release
an equally scalable matching engine that can process more
transactions. This way, the development
team believes this will “dramatically” enhance the
protocol, all without charging trading fees, since it will run on
Cosmos, a scalable layer-1 and interoperable blockchain. Related
Reading: This Brand New Meme Coin Just Raised $11 Million In A
Firesale With No Roadmap Part of these enhancements include making
dYdX more efficient in trading. Subsequently, several features,
such as batch execution and limit orders, will go live. At the same
time, dYdX v4 will support trading new asset classes, such as
equities, commodities, and real estate, making the protocol more
versatile. Ahead of this transition, the native token of the
exchange is trading at H2 2023 highs, looking at price action.
Notably, the token has broken above July to October 2023 resistance
levels with increasing volumes. At the same time, looking at the
development in the daily chart, bull bars are banding along the
upper BB, pointing to strong upward momentum. The region around
$3.25 and $3.5, marking Q1 2023 highs, could be immediate targets
for optimistic bulls. Feature image from Canva, chart from
TradingView
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