dYdX Moves Closer to a Cosmos-Based Network Transition
dYdX has left the StarkEx (a Layer 2 network from StarkWare) and is moving to its own blockchain within the Cosmos ecosystem. In the meantime, the decentralized exchange has launched the private testing phase of dYdX v4. The reason for this step is probably StarkEx shortcomings.
In March, for instance, the Safeheron developer warned about a security vulnerability in some multi-signature wallets interacting with decentralized applications on the StarkEx platform.
According to the dYdX team, the new network was created to provide users with the best trading experience. It offers zero gas fees, low latency, high throughput, and high liquidity like centralized exchanges.
dYdX v4 і MEV Source: dydx.exchange
To achieve this, dYdX v4 utilizes an in-memory order book where only executed orders (i.e. off-chain) are taken into consensus. The team also claims to be actively working on addressing MEV issues by collaborating with experts such as Skip Protocol and ChorusOne.
MEV is the profit validators earn by manipulating transaction orders or censoring them in their favor, leading to high transaction fees. Unlike general-purpose smart contract platforms, the Cosmos infrastructure allows dYdX to create unique MEV solutions that circumvent such an issue.
The dYdX team is not only focused on the development of dYdX v4, but also working on creating applications for iOS and Android, as well as a website. The goal is to facilitate seamless connectivity between their network and other blockchains within the Cosmos ecosystem using the Inter-Blockchain Communication (IBC) protocol, which will enable token transfers between chains.
Dmytro Psevdonimenko
Author
Has been exploring the enigmas of the crypto industry since 2017, transforming them into accessible narratives. Relies on dark chocolate and nuts as a secret source of energy and inspiration.
