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DYdX, Decentralized Crypto Exchange, Open Sources ‘V4’ Code for Upcoming Cosmos Chain

This marks the first step in initiation of the v4 upgrade, where the DEX is transitioning away from its layer-2 network atop Ethereum onto its own standalone blockchain.

By Margaux Nijkerk
AccessTimeIconOct 25, 2023 at 2:08 p.m. UTC
DYdX founder Antonio Juliano. (dYdX)
DYdX founder Antonio Juliano. (dYdX)
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The decentralized exchange (DEX) dYdX announced Tuesday that it is open-sourcing its code, marking the initiation of the exchange’s v4 upgrade and the much-watched transition from a layer-2 network atop Ethereum to a standalone blockchain in the Cosmos ecosystem.

Open-sourcing code is at the core of the blockchain ethos, bringing transparency for developers thatallows them to conduct reviews, detect bugs and improve the quality.

If the proposal is accepted by the community and passes a governance vote, then the blockchain’s new main network or “mainnet” will go live.

According to dYdX Trading Inc., the initial developer behind the exchange, the v4 upgrade will make the exchange fully decentralized and community operated, meaning that the company will no longer control the protocol and will not collect trading fees, according to a press release seen by CoinDesk.

“I think it's a really exciting moment, to take something that in DeFi that already has a product market fit, where there is a billion dollars traded on average on dYdX every day, and fully decentralize it on a fundamentally new technology stack,” Antonio Juliano, dYdX’s Trading founder and CEO, told CoinDesk in an interview. “I think that's something that hasn't really happened to that level in crypto yet.”

After v4 goes live on mainnet, changes to the stack will be done through governance votes by the community through the dYdX Foundation.

In July, the dYdX test network went live on Cosmos.

Read more: 'We Can't Build Something Like This on Ethereum,' Says DYdX Founder as Mainnet Nears

Edited by Bradley Keoun.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Margaux Nijkerk
Margaux Nijkerk

Margaux Nijkerk reports on the Ethereum protocol and L2s. A graduate of Johns Hopkins and Emory universities, she has a masters in International Affairs & Economics. She holds a small amount of ETH and other altcoins.

Follow @cryptauxmargaux on Twitter

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