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dYdX Has Made a Vow To Be Fully Decentralized by End of 2022

Published 04/21/2022, 07:55 AM
Updated 04/21/2022, 08:00 AM
dYdX Has Made a Vow To Be Fully Decentralized by End of 2022
TWTR
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ETH/USD
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  • dYdX has made a promise to the public that it will be 100% decentralized.
  • The main aspects that they will be focusing on with regards to decentralization will be the orderbook and its managing engine.
  • dYdX Trading Inc. will receive no trading fees.

dYdX, an Ethereum Layer-2-based crypto derivatives trading platform has made a promise to the public that it will be “100% decentralized” by the end of 2022.

Currently, only a few components of dYdX can be considered decentralized. These components include its Ethereum smart contracts, governance, and staking. Meanwhile, the order book and matching engine are being managed by the team that developed the platform – dYdX Trading Inc.

dYdX explained in a blog that the main aspects that they will be focusing on with regards to decentralization will be the orderbook and its managing engine. Additionally, the team stated that they suspect their biggest challenges will be scaling throughput, finality, and fairness in a decentralized manner.

dYdX announced the V4 update and new roadmap on Twitter (NYSE:TWTR) yesterday. V4 dYdX will be fully decentralized and all of the aspects that can be controlled will be fully controlled by the community.

The roadmap also emphasized the improvements that decentralized finance (DeFi) can provide. It stated:

DeFi offers a massive improvement in transparency. For the first time, the financial system itself is no longer a black box to users. With DeFi, users can trust code instead of corporations

Moreover, The V4 update outlined that dYdX Trading Inc. will receive no trading fees and that the platform is committed to providing more products and services. Some of these products include synthetics and spot and margin trading.

In other news, many entities in the crypto space seem to be making the move toward full decentralization. For example, MakerDao announced in 2021 that they intend to move towards becoming 100% decentralized as well.

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