dYdx outline plans for full decentralization in late 2022
dYdX has published its fourth iteration, which details their plans to transform into an open-source and community-governed exchange by the end this calendar year.
The current platform runs on a hybrid model, whereby a portion is decentralized, such as staking, governance, and other components, such as off-chain orderbook, matching engine, and staking, are managed by dYdX Trading Inc. There are also external support services from a few centralized partners such as Amazon Web Services.
They stated that there will no more central points of control for the protocol’s failure or success, and then continued to state that the community will fully control all aspects of the protocol that are possible.
dYdX’s mission it to create the best crypto trading platform in the world. Decentralization is a key component of dYdX’s mission. Decentralization is a key component of dYdX’s mission. We believe it will bring about radical improvements in transparency and safety as well as fairness and equality of opportunities.
— dYdX (@dydxprotocol January 11, 2022
Related: AWS outage strikes dYdX raising concerns about its centralization
The platform seeks to not only decentralize efforts but also understand the capabilities of spot, margin, and sythentic trade capabilities. It also wants to improve the trading experience and interface.
dYdX had a record-breaking 2021 year, emerging as one the most prominent outfits constructed upon Ethereum. It uses its Starkware zero-knowledge rollups and smart contract to achieve this.
The dYdX governance token was distributed by the derivative exchange to a huge fanfare, including 64,306 eligible users and the wider crypto community. Customers who traded between $1,000 and $10,000 before the retroactive closing date could claim 1,163 DyDX, which is equivalent to $16,561.
The airdrop created momentum for the project, which was quantitatively exemplified when the exchange exceeded the daily trading volume for global exchange Coinbase ($4.3billion to $3.7billion) for the first-ever time in its history. In the midst of a wider market correction, the asset reached a record high of $27.78. However, it has fallen to $7.20.
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