Decentralized exchange platform dYdX has announced plans to build a standalone blockchain, according to details of the Ethereum Layer-2 protocol shared on Wednesday.
dYdX, one of the largest crypto derivatives platforms in the market today, says that it intends to build a new chain based on the Cosmos SDK (Software Development Toolkit).
For transaction processing, dYdX V4 will use the Tendermint Proof-of-Stake (PoS) consensus protocol.
A ‘fully decentralized orderbook’ and high throughput
,dYdX V4 will feature a fully decentralized, off-chain, orderbook and matching engine that will be able to scale orders of magnitude higher throughput than any other blockchain,“Noted in forum one blog post,
While the team at dYdX plans to turn the DEX protocol into one of crypto’s largest exchanges, they acknowledge the enormity of that ambition and the magnitude of how difficult it can be. However, under the leadership of co-founder Antonio Juliano, they are confident of success.
,Developing a decentralized off-chain orderbook and moving from Ethereum as a major DeFi protocol to a DYDX-specific on-chain remains largely untapped, but we believe it will give DYDX a competitive product experience with centralized exchanges. Gives the best shot at rendering.“The team said in a twitter thread,
dYdX V4 will have a Layer1 token for the chain, although the team says it hasn’t settled on a dYDX token because the community will need an input on that.
$DYDX The token appears to be a natural fit for use as a Layer 1 token for the V4 network, but we look forward to understanding the perspective of the dYdX community.
— dYdX (@dYdX) 22 June 2022
According to the platform, there are plans to build dYdX and make it open source by the end of 2022.