dYdX, a famous crypto derivatives exchange, has announced that it will be developing dYdX V4 on a standalone Cosmos based blockchain and Tendermint Proof-of-stake consensus protocol.
DYDX price up by 7%
Exchange mentioned that it will feature a fully decentralized, orderbook, off chain, and matching engine. The exchange claimed that it will be capable of scaling a huge magnitude of orders throughout than any other blockchain can support.
As per the release, the development of the V4 will mark full decentralization of the dYdX protocol. It will offer a full blend of decentralization, scalability, and customizability with the help of Cosmos. It added that its native token, DYDX happens to be the best fit for use as the L1 token of dYdX V4.
Since the announcement, the dYdX token’s price has registered a surge of over 7%. The token is trading at an average price of $1.52, at the press time. Its 24-hour trading volume has jumped by 25% to stand at $78.6 million.
V4 to be fully decentralized
The derivative exchange highlighted that its V4 code will be an open source. It basically means that everything will run without the permission of networks where no service will be run by dYdX trading inc. This is done in order to improve the protocol. Its community will be controlling every aspect of the stack.
The exchange explored the potential of running and upcoming blockchain technologies. After this, they took the decision to go with the Cosmos in order to build a fully decentralized protocol. It added that a huge benefit of developing it in Cosmos is that it suits the need of the dYdX network.
The release mentioned that traders will not have to pay gas fees to trade. However, the fees will be based on trades executed similar to dYdX V3. It added that these fees would rise over time to validators and their stakers.