Background:
As a reminder, the dYdX v3 exchange has an offshore matching engine supported by dYdX Trading. All funds and settlement on v3 occur on smart contracts controlled by tokenholder governance. Trading fees on v3 accrue to dYdX Trading.
By contrast, dYdX Chain is fully decentralized. All of the trading fees paid on dYdX Chain accrue to validators and DYDX stakers. All dYdX Chain code is open source.
What are we doing?
dYdX Trading is exploring strategic alternatives related to the v3 technology, which does not include the Ethereum smart contract or other technology governed by the utility token. Token holders would, of course, have to vote to approve any changes to the smart contracts that underly v3.
Why are we doing this?
dYdX Trading is all in on dYdX Chain. While v3 has been successful, we believe dYdX Chain better represents the vision of dYdX Trading Inc. and the ethos of DeFi, and we will be dedicating ourselves to the development of this software.
Considering strategic alternatives for the v3 technology is a way to clarify our focus to allow us to make dYdX Chain software as successful as possible.
What’s next?
We have some incredible things in store for the dYdX Chain software. Novel new liquidity mechanisms including an integration with our friends at Elixir, permissionless market listings, and new ways to trade, all coming in the next few months.
Check out our product roadmap here.
About dYdX
dYdX’s mission is to democratize access to financial opportunity. We believe that the dYdX Chain represents a large step forward in service of that mission.
If building the future of DeFi is something you’re interested in, check out what it’s like to work at dYdX and our open roles!
Join the discussion on Discord, participate in the dYdX community, or follow us on Twitter.
Learn more at dydx.exchange.
Terms and Conditions: This document provides information with respect to the default settings of dYdX Trading Inc. (”dYdX”) open source v4 software [(”dYdX Chain”)]. 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 or deploy v4 software, including dYdX Chain. 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 dYdX Terms of Use). The content provided herein does not constitute, and should not be considered, 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 the v4 Terms of Use.