dYdX exchange launches testnet for ‘fully decentralized’ version 4

dYdX Launches V4 Testnet for Fully Decentralized Exchange

Crypto exchange dYdX has announced the launch of a public testnet of its V4 iteration, marking the completion of “milestone 4” out of five and paving the way for a future mainnet launch. Once implemented, V4 will enable full decentralization of the exchange.

dYdX is a crypto exchange built on Ethereum and StarkEx networks that does not take custody of users’ funds, making it a decentralized exchange (DEX). Unlike automated market-maker DEXs like Uniswap, it currently features a centralized order book and matching engine that allows market makers to place limit orders.

The new V4 protocol will eliminate the centralized order book and matching engine, thus making dYdX a fully decentralized exchange without relying on an automated market-maker. According to the protocol’s documentation, it will do this by running parts of the app on a separate dYdX network with its own validators, allowing the order book to be stored on-chain.

dYdX’s Testnet and Roadmap Milestones

As of 17:00 UTC on July 5, users of the dYdX crypto app can request testnet funds to try out the platform, allowing them to virtually trade, check their profits and losses, and perform other basic functions. Inter-blockchain communication (IBC) for users of Cosmos has yet to be implemented, but will be rolled out over the course of the public testnet.

After the testnet phase is completed, dYdX’s roadmap will move onto its fifth milestone, which will integrate stablecoins into the platform and support IBC for Cosmos users. The fourth version of the app is expected to be launched after this milestone is completed.

In April, dYdX announced that it would be winding down its services in Canada due to regulatory issues. In September 2022, the firm attempted to offer a $25 bonus to new users if they proved they weren’t bots, but this promotion was later abandoned.

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