Overview
dYdX Trading is excited to share that v4.0 of our v4 open source software (”dYdX Chain”) has been released! The release includes various feature, risk, governance, and performance upgrades to the protocol.
For more information, head to the release notes.
Reduce Only
Reduce-only orders are beginning to be supported on dYdX Chain. Reduce-only will only be available for fill-or-kill and immediate-or-cancel short term orders, as well as fill-or-kill and immediate-or-cancel conditional orders.
On the front end, this translates to any market orders, limit fill-or-kill and immediate-or-cancel orders, stop market orders, take profit market orders, as well as stop limit and take profit limit fill-or-kill and immediate-or-cancel orders.
IBC Withdrawal Rate Limiting
dYdX Chain withdrawal rate limits have been created which gate the amount of tokens that can be IBC’d out of dYdX Chain in emergency situations.
The default software rate limits net-withdrawal of Noble USDC, at below levels:
max(1% of TVL, $1mm ) per hour
AND
max(10% of TVL, $10mm) per day
*These rate limit parameters can be updated by governance.
Subaccount Withdrawal Gating
dYdX Chain has created subaccount withdrawal gating for specific circumstances. All subaccount transfers and withdrawals will be gated for 50 blocks if a negative collateralized subaccount is seen in state and/or can't be liquidated or deleveraged. All subaccount transfers and withdrawals will also be gated for 50 blocks if a 5+ minute chain outage occurs.
Governance Enabled Slashing
A new module, x/govplus, has been created which enables any applicable layer 1 token holders to slash validators and their stakers. This was built to ensure any applicable layer 1 token holders have the appropriate powers and tools to punish any validator who may be violating socially agreed upon rules, such as MEV.
Authz
x/authz is a Cosmos module that has now been enabled on dYdX Chain. The x/authz module defines interfaces and messages which grant authorizations to perform actions on behalf of one account to other accounts.
The module can be used in a variety of ways which include but are not limited to enabling delegation of voting rights to other accounts such as hot wallets, and enabling new use cases for auto compounding staking rewards.
For more information on x/authz, head to the Cosmos SDK documentation.
Cosmos 0.50.3 Upgrade
The Cosmos SDK has been upgraded to v0.50.3 allowing features such as optimistic execution and vote extensions to be enabled in future protocol releases. See the Cosmos SDK 0.50.0 release announcement and release notes for additional details.
With the introduction of Cosmos 0.50.3, the governance module introduces the concept of expedited proposals. A proposal can be expedited, making the proposal use shorter voting duration and a higher tally threshold by its default. If an expedited proposal fails to meet the threshold within the scope of shorter voting duration, the expedited proposal is then converted to a regular proposal and restarts voting under regular voting conditions.
dYdX Trading recommends the following parameters for any network utilizing its open source software:
Expedited voting period: 1 day
Expedited threshold: 0.75
Expedited minimum deposit: Equivalent to the network’s Minimum Deposit for a regular proposal
Terms and Conditions: The dYdX Ops SubDAO and Cosmos are independent from and unaffiliated with dYdX, and dYdX is not responsible for any action taken by the foregoing or any other third parties, including content set forth on any third-party websites, such as any links to such content in this document. dYdX does not deploy or run v4 software for public use, or operate or control any dYdX Chain infrastructure. dYdX is not responsible for any actions taken by other third parties who use v4 software. dYdX services and products are not available to persons or entities who reside in, are located in, are incorporated in, or have registered offices in the United States or Canada, or Restricted Persons (as defined in the dYdXTerms of Use). The content provided herein does not constitute, and should not be construed or relied upon as, financial advice, legal advice, tax advice, investment advice or advice of any other nature, and you agree that you are responsible to conduct independent research, perform due diligence and engage a professional advisor prior to taking any financial, tax, legal or investment action related to the foregoing content. The information contained herein, and any use of v4 software, are subject to thev4 Terms of Use.