dYdX moves to Cosmos-based blockchain for v4 to optimize decentralization and trading flow
2022.06.22 22:31
dYdX moves to Cosmos-based blockchain for v4 to optimize decentralization and trading flow
On Thursday, crypto derivatives platform dYdX, which is currently built on Ethereum layer 2, announced that it would be moving to a standalone blockchain based on the Cosmos SDK and Tendermint proof-of-stake consensus for its v4 update. The firm cites the Cosmos blockchain’s decentralization and performance as reasons for being a “best fit” for building dYdX for v4.
Currently, the existing dYdX protocol processes about 10 trades per second and 1,000 order placements and cancellations per second, with the goal of scaling to magnitudes higher. However, the firm says that neither Ethereum layer 1 nor layer 2 solutions can meet its requirements for throughput speed while also satisfying its 100% decentralization requirement by the end of the year.
