dYdX, a prominent cryptocurrency exchange, has unveiled the open source code for its new network based on Cosmos, which shares the same name as the exchange. The code release encompasses a wide array of elements such as protocols, order books, frontends, and more, marking a significant step towards the forthcoming mainnet launch. This mainnet launch is being organized by the dYdX Decentralized Autonomous Organization (dYdXDAO) SubDAO operating organization.
While dYdX is recognized as one of the largest non-custodial cryptocurrency exchanges with a daily trading volume exceeding $2.6 billion, it currently relies on a centralized order book for matching traders and market makers. This centralized feature has led to discussions about the exchange's decentralization status. In response, the dYdX team has been actively developing a new dYdX chain based on Cosmos. This development is intended to facilitate the decentralization of the exchange's order book, moving the protocol away from centralized control and towards genuine decentralization. To initiate this shift, a testnet for the new network was launched on July 5th. Currently, dYdX operates on Ethereum's second layer using StarkEx technology.
The release of the new code for the Cosmos-based dYdX network aims to make the exchange's infrastructure accessible for operation on a global scale by decentralized finance (DeFi) enthusiasts. Importantly, following the completion of the mainnet launch, the dYdX development team will not retain any control over the infrastructure supporting the new dYdX chain. Nevertheless, the specific launch date for the mainnet has not been disclosed. The blog post encourages readers to review the dYdX Operations subDAO's dedicated blog post for further information.
In an October 4th post, the dYdX Operations subDAO outlined its proposal for a phased mainnet launch. The proposed alpha phase will permit token holders to stake their tokens and receive staking rewards but will not allow for trading activities. Subsequently, the testing phase will be introduced, enabling trading while facilitating further testing. However, specific launch dates for these phases were not provided in the post.
