Popular DEX platform dYdX announced Tuesday the launch of its private test network V4, as it plans to migrate its Ethereum blockchain to Cosmos, and by the end of September, the platform will have full access to Cosmos services.
dYdX will use the Cosmos Software Development Kit (SDK) to develop its own native blockchain and will begin offering cryptocurrency spot trading. In addition to being decentralized, dYdX also allows traders to trade assets on margin.
The private testnet for dYdX is scheduled to launch on Tuesday and will begin testing in a few weeks, after which the public testnet will be rolled out at the end of July.
The reason why dYdX has stopped using Ethereum, the platform explains, is a problem in supporting large volumes of transactions.
“We got to a point where Ethereum couldn’t process that fast,” said dYdX’s head of marketing.
The team has been researching various Blockchain projects including Solana and Layer 2 solutions.
“We came to the conclusion that Cosmos is a better choice because we can adjust the blockchain as we want and can handle transactions faster.”
Get to know dYdX
dYdX is a cryptocurrency trading platform. Decentralized dydx was launched in 2017 by Antonio Juliano, who previously worked at Coinbase and Uber as a software engineer. $341.5 million of assets are now locked up in the DeFi Llama.
Despite the market shake-up from the FTX event, dYdX revealed that it has been a positive for people to switch to a cryptocurrency trading platform. more decentralized
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