- dYdX has launched its public test network on Cosmos as it moves away from Ethereum.
- The testnet allows users to place market orders, generate private keys, and place limit orders with advanced options.
- DYDX, the governance token of the platform, has experienced a 23% increase in value in the past two weeks.
According to a July 5 announcement, decentralized exchange dYdX has launched a public testnet of its “v4” iteration on Cosmos, marking a major shift from Ethereum. This is “milestone 4” out of five completed, paving the way for a future v4 mainnet launch.
Once deployed on the mainnet, v4 is expected to enable “full decentralization” of the exchange.
The Ethereum and StarkEx networks serve as the foundation for the dYdX exchange. It is commonly referred to as a decentralized exchange (DEX) because it does not hold users’ funds. However, it includes a centralized order book and matching engine, allowing market makers to place limit orders. This is in contrast to automated market maker DEXs such as Uniswap, which use on-chain pricing algorithms to match buyers and sellers.
Version four of dYdX will do away with the exchange’s centralized order book and matching engine, making it fully decentralized but without the use of an automated market maker. The protocol’s documentation states that it will accomplish this by running parts of the app on a separate dYdX network with its own validators, allowing the order book to be stored on-chain.
According to the July 5 announcement, users could request testnet funds to try out the app as of 5:00 pm UTC, allowing them to place virtual trades, view profit and loss, and perform other basic functions of the exchange. The ability to test bridging from one network to another has not yet been implemented but will come “over the course of the public testnet.”
In April, due to regulatory issues, the dYdX exchange announced that it would wind down its services in Canada. In September 2022, the exchange offered a $25 bonus to new users if they proved they weren’t bots, causing some pushback from privacy advocates. The team later abandoned the promotion.
After the testnet phase is completed, the protocol’s team intends to implement the fifth milestone of the roadmap, which will integrate stablecoins into dYdX and add support for Cosmos Inter-Blockchain Communication, allowing Cosmos users to use the app. Version four is expected to be released after the final milestone is met.
As stated by the company, the launch of the main network on Cosmos will take place later this year, but no specific date has been set.
