{"id":2865434,"date":"2023-09-06T04:15:04","date_gmt":"2023-09-06T08:15:04","guid":{"rendered":"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/plato-data\/dydx-to-launch-decentralized-order-book-exchange-on-cosmos-kbw-2023\/"},"modified":"2023-09-06T04:15:04","modified_gmt":"2023-09-06T08:15:04","slug":"dydx-to-launch-decentralized-order-book-exchange-on-cosmos-kbw-2023","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/dydx-to-launch-decentralized-order-book-exchange-on-cosmos-kbw-2023\/","title":{"rendered":"DYdX to launch decentralized order book exchange on Cosmos: KBW 2023"},"content":{"rendered":"

Decentralized exchange (DEX) platform dYdX plans to offer a \u201cpurely decentralized\u201d order book exchange as it migrates its ecosystem from the Ethereum network to the interchain network Cosmos.<\/p>\n

At the Korea Blockchain Week 2023, Cointelegraph\u2019s Andrew Fenton spoke with dYdX Foundation CEO Charles d\u2019Haussy about the DEX\u2019s plans to implement decentralized order books on the exchange and how it plans to shift its ecosystem to a new blockchain network. <\/p>\n

Attendees at the Korea Blockchain Week 2023, held in Seoul, South Korea. Source: Cointelegraph<\/em><\/figcaption><\/figure>\n

In the interview, d\u2019Haussy told Cointelegraph that one of the issues faced by DEXs is the slow performance of on-chain order books. Because of this issue, order books for DEXs had to be taken off-chain to cater to the needs of the users. He explained:<\/p>\n

\u201cIf you have like a one-second block time, you still have a one-second latency. And the market of crypto derivatives is a very high-frequency market. So, you cannot offer one-second latency.\u201d <\/p><\/blockquote>\n

D\u2019Haussy highlighted that dYdX is taking a \u201cnew step forward\u201d in decentralization by making the order book decentralized. According to the executive, the order book will not be on the dYdX chain because it will still be slow, but it will instead be hosted within the validators. <\/p>\n

\u201cSo, the architecture choice by dYdX engineers is to decentralize the order book, without adding it on-chain because it will be too slow. The decision was made to essentially host the order book within the memory of the validators,\u201d d\u2019Haussy added. <\/p>\n

D\u2019Haussy believes this method is a \u201cnew thing within the space.\u201d The executive explained that validators usually validate blocks and create new blocks with a set of transactions. He also said the validators will still do this on the dYdX chain but will also store order books in their memory. \u201cAnd that\u2019s one solution, which we\u2019ll use to essentially offer to the market a purely decentralized order book exchange,\u201d he explained.<\/p>\n

Related: <\/em><\/strong>40% of crypto trading platforms are decentralized: World Federation of Exchanges<\/em><\/strong><\/a><\/p>\n

Apart from the decentralized order book, d\u2019Haussy spoke about dYdX\u2019s move to Cosmos. \u201cDYdX is not expanding, dYdX is migrating. So, the Ethereum exchange will close within a few months […] we are migrating the full ecosystem,\u201d he explained. <\/p>\n

\n

\ufe0f v4 Adoption & DYDX Token Migration<\/p>\n

The dYdX community has voted in support of v4 Adoption and a potential DYDX Token Migration\u2757 <\/p>\n

\u2705 ~36M DYDX from 392 addresses
\u274c ~43 DYDX from 4 addresseshttps:\/\/t.co\/FBLMZATURn<\/a> pic.twitter.com\/RwyOaDwpe4<\/a><\/p>\n

\u2014 dYdX Foundation (@dydxfoundation) September 3, 2023<\/a><\/p><\/blockquote>\n

According to d\u2019Haussy, users will barely notice the change, which will be very smooth. Users will only need to connect their MetaMask wallets to the new dYdX chain, adding that dydx will \u201ctake care of all the heavy lifting.\u201d <\/p>\n

Magazine: <\/em><\/strong>Web3 Gamer: Crypto games need viral moment, Nitro Nation review, Axie\u2019s project Greenlight<\/em><\/strong><\/a><\/p>\n