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Decentralized exchange (DEX) platform dYdX is planning to offer a \u201cpurely decentralized\u201d order books exchange as they migrate their ecosystem from the Ethereum network to the interchain network Cosmos.<\/p>\n
At the Korea Blockchain Week 2023, Cointelegraph’s Andrew Fenton spoke with dYdX Foundation CEO Charles d’Haussy about the DEX\u2019s plans to implement decentralized order books on their exchange and how they plan to shift their ecosystem onto a new blockchain network. <\/p>\n In the interview, d’Haussy told Cointelegraph that one of the issues that decentralized exchanges are facing 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 of the trading platform. He explained:\u00a0<\/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 Because of this, d’Haussy highlighted that the dYdX is taking a \u201cnew step forward\u201d in terms of decentralization by making the order book decentralized. According to the executive, the order book will still not be on the dYdX chain because it would still be slow but would 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’Haussy added. <\/p>\n d’Haussy believes that this method is a \u201cnew thing within the space.\u201d The executive explained that validators are only usually validating blocks and creating new blocks with a set of transactions.\u00a0The dYdX Foundation CEO also said that the validators will still do this on the dYdX chain, but they will also have the role of storing order books in their memory. \u201cAnd that’s one solution, which we’ll 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’Haussy also spoke about dYdX\u2019s move to Cosmos. The executive clarified that the platform will be fully transferring its platform. \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 \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\u00a0<\/p>\n \u2705 ~36M DYDX from 392 addresses \u2014 dYdX Foundation (@dydxfoundation) September 3, 2023<\/a><\/p><\/blockquote>\n According to d’Haussy, users will barely notice the change as it would be very smooth. Users will only need to connect their MetaMask wallets to the new dYdX chain, and the executive said that they will \u201ctake care of all the heavy lifting.\u201d\u00a0<\/p>\n\n
\u274c ~43 DYDX from 4 addresseshttps:\/\/t.co\/FBLMZATURn<\/a> pic.twitter.com\/RwyOaDwpe4<\/a><\/p>\n