dYdX Chain, Transformation from dApp to Application Ecosystem Chain

Bittime - The decentralized finance (DeFi)  industryis growing rapidly, and one of the sectors attracting the most attention is crypto derivatives exchanges. Among its competitors, dYdX has established itself as a leader in decentralized crypto derivatives exchanges.

However, dYdX is not satisfied with just the status quo. Recently, dYdX launched a revolutionary step, namely migrating from dApps (decentralized applications) to its own application chain, dYdX Chain.

Why dYdX Build Its Own Application Chain?

Despite being a leader in decentralized crypto derivatives exchanges, dYdX has limitations due to its dependence on StarkEx (Ethereum's Layer 2 solution). dYdX needs a more flexible infrastructure to support its future product development.

The decision to migrate to the application chain itself is like moving from renter to property owner. dYdX can innovate freely without the restrictions and control of other parties. The dYdX application chain is built using the Cosmos SDK, an open source toolkit that enables high customization.

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dYdX v4: A High-Performance, Decentralized On-Chain Derivatives Exchange

dYdX v4, built on dYdX Chain, offers significant improvements over previous versions:

• Performance Improvement: A custom application chain allows dYdX to optimize its own performance. dYdX v4 is capable of processing up to 2,000 transactions per second, far exceeding the capabilities of v3.
• Lower Gas Fees: v4 eliminates expensive gas fees on on-chain transactions. Fees are only charged when orders are filled, similar to centralized exchanges.
• Greater Decentralization: v4 has a fully decentralized order book and order matching engine. Network validation and block generation are carried out by independent validators.
• Greater Token Utility: dYdX token (DYDX) not only serves for a cut of transaction fees, but also plays a role in the governance, staking, and voting rights of token holders.
• Wider Trading Markets: v4 supports trading for over 60 crypto assets and plans to reach 500+ assets by the end of 2024.

Also Read: What is dYdX (DYDX)? The Future of Decentralized Derivatives Trading

dYdX Strategy to Attract Users

dYdX implemented various strategies to attract users to v4:

• Trading Incentives: US$20 million worth of incentive programs allocated to reward trading activity in v4.
• Hedging with Funding Rates: Users can take advantage of dYdX funding rates by opening short orders on dYdX and holding assets on centralized exchanges simultaneously.
• Staking dYdX with 20% APR: Staking dYdX offers attractive passive income for investors.

Also Read: dYdX Foundation Receives $30 Million in Community Funds

Comparison of dYdX with Competitors

dYdX faces stiff competition from other decentralized crypto derivatives exchanges such as GMX and Hyperliquid. However, dYdX excels in terms of:

• User experience: v4 offers a smoother trading experience and more competitive transaction fees.
• Decentralization: The independent validator structure makes dYdX more decentralized than competitors.
• Trading Volume: Until now, dYdX is still the leader in terms of daily trading volume.

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The Growing dYdX Chain Ecosystem

dYdX Chain built on Cosmos takes advantage of the network's interoperability. This enables integration with various other DeFi protocols in the Cosmos ecosystem, including:

• Liquidity Staking: Some protocols offer dYdX liquidity staking in exchange for high yields.
• Cross-Chain Bridge: Integration with the Axelar Interoperability Network enables cross-chain asset transfers to and from dYdX Chain.

dYdX's transformation from a dApp to its own app chain was a bold move with a big impact. dYdX v4 offers a faster, cheaper and decentralized trading experience. The ability to interoperate with the Cosmos ecosystem opens up broad development potential for dYdX Chain in the future.

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How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime . 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read: 

What is Derivatives Market?

Understanding the Challenges and Potential of Crypto Derivatives

Understanding the Potential of Decentralized Derivatives in the Blockchain Ecosystem

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.