The world of decentralized finance witnesses the avant-garde solution of the dYdX project, offering groundbreaking advancements since its inception in 2017. Catering to the ever-evolving landscape of cryptocurrencies, this derivatives-focused platform consistently aligns with the industry’s trajectory. This dynamic evolution is fueled by strategic decisions that resonate with a discerning community. The project’s developers consistently rally behind one guiding principle: complete and effective decentralization. The latest stride towards this goal is the eagerly anticipated testing phase of dYdX’s Version 4 (V4).
Continual Path Towards Decentralization
Since its inception, the dYdX project has undergone essential transformations. Emerging in 2017 as an Ethereum network protocol, this derivatives platform initially offered options trading and leveraged positions. However, that was merely the beginning.
The cryptocurrency sector is in a constant state of flux, compelling historical projects to adapt and remain competitive. dYdX swiftly embraced this strategy. In 2021, the trading platform migrated to a dedicated layer 2 network, a strategic move to evade Ethereum’s layer 1 congestion. This alliance with Starkware immediately yielded significant success.
However, dYdX’s project members believed that a crucial ingredient was still missing: total and effective decentralization. According to them, « global economic events over the past year have only reinforced the need for open, transparent, and permissionless financial products. » This renewed ambition gave birth to the ongoing testing phase of Version 4.
The clear objective for the dYdX platform is to compete with centralized exchanges (CEXs) like Binance while retaining its highly decentralized (DEX) nature.
Testing V4 on Cosmos Ecosystem
On July 5th, a historic announcement marked the launch of dYdX’s much-anticipated Version 4 testnet, accessible to all. This pivotal moment arrived after more than a year of development efforts. The primary challenge lay in migrating towards the Cosmos ecosystem, which could provide a network built on its Tendermint technology.
This operation was part of a roadmap, with the testnet deployment serving as the « fourth stage. » The previous stage had laid the foundation for this full-scale exercise. dYdX’s fifth and final stage, the deployment of its mainnet, is yet to be determined.
« Stage 4 marks the completion of the features necessary for launching our public testnet, which will include a larger set of validators running our software (over 40). This public testnet will launch with Bitcoin and Ethereum markets, but we expect the open-source software to include more than 30 markets as the network upgrades! »
The Future of DYDX Cryptocurrency
This ongoing migration raises questions about the future of the DYDX cryptocurrency. Deployed on the Ethereum network in August 2021 as an ERC-20 governance token, DYDX might experience a new trajectory. The project’s community needs to decide its fate, possibly transforming it into a « protocol token » for the dYdX Chain. A native cryptocurrency linked to a layer 1 blockchain holds broader potential than a simple governance token. This is especially relevant when the network employs a Proof of Stake (PoS) consensus mechanism, involving staking for security. Therefore, « the dYdX community may choose to use the governance token DYDX from its v3 as the L1 cryptocurrency for the dYdX Chain. »
If a community vote confirms this transition, the DYDX token would be « migrated from the Ethereum network to the dYdX Chain. » The project’s leaders have already planned for this scenario. They’ve commissioned the development of a smart contract to deploy a « one-way bridge » for this purpose. Additionally, an open-source code will facilitate the creation of a user interface to interact with the smart contract.
Testing V4: How to Participate
Real-time testing of the enhanced Version 4 of the dYdX platform is now possible. A detailed update marked the end of the first testing phase on August 7th, followed by the commencement of a second phase on August 10th at 17:00 UTC. This phase promises the release of « more features that traders know and love. » An exciting prospect indeed!
To engage with this testing phase, one needs to connect a wallet to the dYdX Chain to generate private keys. Afterward, « testnet funds » can be claimed directly through the faucet, providing mock USDC stablecoins for various services.
This second test version incorporates noteworthy updates. Traders can now test all 30 markets offered by dYdX, in addition to BTC and ETH. Moreover, participants can earn governance tokens linked to this testnet (testnet_reward_token) as they engage in trading activities. The update also includes a dedicated option for trading fees. This offers a more comprehensive understanding of the next-generation services provided by the platform.
Engaging in the second round of the dYdX crypto trading platform’s testnet offers two undeniable advantages. Firstly, it grants access to the full suite of derivative-related functionalities within a completely secure environment. Secondly, it actively involves users in shaping the evolution of a decentralized industry leader, ensuring mastery of its tools for upcoming operations. The time to hesitate is over—seize the opportunity!
Plongez dans cette deuxième phase du testnet de la plateforme de trading crypto dYdX pour profiter de deux avantages indéniables. D’abord, accédez à l’ensemble complet de fonctionnalités dérivées dans un environnement totalement sécurisé. Ensuite, prenez part activement à façonner l’évolution d’un leader industriel décentralisé, et préparez-vous à maîtriser ses outils pour les opérations à venir. Ne laissez pas passer cette opportunité unique ! Et si vous souhaitez explorer d’autres opportunités d’investissement, envisagez de consulter des plateformes réputées comme Bitcoin News Trader ou Bitcoin Evolution pour élargir vos horizons financiers.
