dYdX Unveils its Chain’s Open-Source Code in Anticipation of Phased Mainnet Launch
Leading decentralized crypto exchange dYdX has open-sourced the code for its new dYdX Chain, opening the way for the platform’s transition to a completely decentralized design to begin on the mainnet.
The dYdX team announced the release of the open-source protocol, order book, front-end, and other fundamental components powering the exchange’s Cosmos-based blockchain network in an X (previously known as Twitter) post on October 23.
While dYdX is now one of the largest non-custodial crypto trading platforms, with over $2.6 billion in daily activity, some critics have questioned its decentralized status due to its reliance on a centralized order book.
The open sourcing of the codebase marks a significant step forward in dYdX’s ambition to fully decentralize its order book and remove the development team’s influence over the protocol. The move transfers control of the mainnet launch and future governance to the community-governed dYdX Decentralized Autonomous Organization (dYdXDAO).
Following the publication of the code, the dYdXDAO SubDAO on Operations recommended a staggered rollout of the mainnet, with an alpha testing period to allow staking, followed by a beta launch allowing live trading and more testing before full decentralization. There are no official dates specified for the launch phases.
The new dYdX Chain infrastructure is based on the Cosmos ecosystem, which moves the exchange away from the present Ethereum layer-2 StarkEx design. According to dYdX, the open-source design would allow DeFi aficionados all around the world to run node infrastructure and participate in DAO governance.
The dYdX development team has said that once the mainnet is activated, they will no longer have influence over the protocol’s infrastructure or governance decisions. This hands-off approach is viewed as a chance to build a fully permissionless and censorship-resistant decentralized exchange run entirely by its community.
According to DYdX CEO Charles d’Haussy, the company is relocating rather than expanding.
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