dYdX, a significant decentralized exchange (DEX), has officially transitioned from its Ethereum base to launch its native chain. This marks the first instance of a major DEX opting for autonomy by setting up its own native blockchain. Notably, this significant move allows users to move away from the Ethereum protocol and engage in staking activities on the new dYdX Chain.
Technical innovations in the dYdX ecosystem
On October 24, 2023, dYdX initiated a sequence of notable activities. The organization’s software development wing, dYdX Trading Inc., announced the release of dYdX Chain’s open-source software. Subsequently, on October 26, the dYdX Operations subDAO reported the successful launch of the dYdX Chain’s mainnet genesis. Genesis Validators were an integral part of the first block’s creation on the newly inaugurated blockchain. Additionally, the mainnet genesis was followed by the deployment of a Bridge User Interface on October 30, available for public use. This interface facilitates the conversion of ethDYDX to DYDX, the native token of the new chain.
Users interested in converting their tokens can access the platform at bridge.dydx.trade. Moreover, this development opens up increased utility for DYDX token holders, enabling them to bridge their tokens from Ethereum to the dYdX Chain.
dYdX Chain’s Alpha and Beta phases
The dYdX Chain is currently in its Post-Genesis phase, which comprises two stages: Alpha and Beta. During the Alpha stage, the focus is squarely on bolstering network stability and security. A critical element in achieving this stability is the staking of DYDX tokens to dYdX Chain Validators. Hence, as more tokens are staked across diverse Validators, the network becomes more secure, reducing the likelihood of coordinated attacks that could compromise consensus decisions.
Transition to the Beta stage is contingent on several factors, including performance metrics and a successful governance vote within the dYdX Chain community. The Beta stage aims to introduce limited trading functionalities, setting the stage for a fully operational dYdX Chain. At this juncture, the dYdX Operations subDAO will transition to operate a protocol front-end and manage the operation of an indexer, with public accessibility in view.
In line with the dYdX Foundation’s goals, the newly launched chain and associated technological enhancements aim to promote community-driven growth in the ecosystem. However, it’s important to note that the dYdX Foundation remains independent from other entities, such as dYdX Trading Inc. and the dYdX Operations subDAO. While the foundation supports the protocol’s implementations, it doesn’t have control over how people interact with the dYdX Chain software.