The decentralized exchange, dydx, has secured the full backing of its community to move to its fourth version and establish the DYDX token as the primary Layer 1 token for its forthcoming blockchain.
The community expressed its support during a vote on the Snapshot platform, which concluded on September 4, with nearly unanimous approval.
Proposed by Wintermute, the motion saw a massive 36 million votes in favor from 392 unique addresses. Only four addresses opposed, totaling 43 votes against.
Such robust community support sets the stage for the DYDX token’s transition from the Ethereum (ETH) network to a Layer 1 appchain in the Cosmos ecosystem, currently being tested.
The proposal further encompassed the creation of an Ethereum smart contract, supervised by the dYdX Foundation.
This contract is designed to facilitate the smooth migration of DYDX tokens from the Ethereum platform to the upcoming dYdX Chain.
Antonio Juliano, the founder of dYdX, declared, “DYDX is set to become the foundational token of the dYdX Chain.”
Established in 2018, dYdX stands as a premier decentralized derivatives market with a focus on perpetual trading.
With a trading volume reaching nearly $240 million in just the past 24 hours and an impressive cumulative trading volume of over $1 trillion since its 2020 debut, the platform firmly stands as a leader in the decentralized derivatives arena.
“Perpetuals,” short for perpetual contracts, are futures contracts that don’t have an expiry date, which has made them a favorite in the crypto realm.
In the forthcoming dYdX version 4, each validator within the network will manage an offchain orderbook.
Trade requests will be directed to the network and dispersed among validators. These validators will then produce blocks with paired orders through a proof-of-stake consensus process.
DeFi Platforms Take the Spotlight as Interest in CeFi Wanes
Following the recent turbulence in the crypto market, investment trends have evolved, with venture capitalists pivoting their investments from CeFi initiatives to the burgeoning DeFi sector.
A March analysis by CoinGecko underscored that in 2022, digital asset investment firms channeled $2.7 billion into DeFi endeavors, representing a substantial 190% surge from 2021.
On the other hand, capital funneled into CeFi projects saw a 73% decline, settling at $4.3 billion in the same timeframe.
This data hints at DeFi’s ascent as the latest rapid-growth segment in the crypto domain, suggesting that CeFi might be approaching its peak.
Binance’s CEO, Changpeng Zhao, recently forecasted that DeFi might eclipse CeFi in the forthcoming bullish phase.
In a recent AMA, the cryptocurrency leader shared his conviction that DeFi possesses the capacity to exceed CeFi when it comes to trading volumes.
Zhao remarked, “The greater the decentralization in the industry, the more advantageous it is.” He implied that DeFi’s ascendancy over CeFi trading volumes might be on the horizon, especially considering DeFi currently accounts for approximately 5% to 10% of CeFi volumes.