DYdX Trading, one of the leading decentralized exchanges (DEXs) in the crypto space, has announced the release of its open-source code for version 4 of its platform, which is built on the Cosmos blockchain. The code is available on GitHub for anyone to review, audit, and contribute to.
The new version of DYdX Trading aims to offer a faster, cheaper, and more scalable DEX experience for traders, while maintaining the high level of security and decentralization that DYdX is known for. The platform leverages the Cosmos SDK, a modular framework for building interoperable blockchains, and the Inter-Blockchain Communication (IBC) protocol, which enables cross-chain transactions and asset transfers.
One of the key technologies that enables these benefits is the IBC protocol, which is a standard for transferring data and tokens across different blockchains. IBC allows DYdX Trading to access a variety of assets and markets from other chains, such as Bitcoin, Ethereum, Binance Smart Chain, Terra, and more. IBC also ensures that these transfers are secure, fast, and reliable, by using cryptographic proofs and state machines to verify the validity and finality of each transaction.
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According to DYdX Trading, the main benefits of using Cosmos for its DEX are:
Lower fees: By running on a dedicated blockchain, DYdX Trading can optimize its gas costs and offer lower fees to its users, compared to Ethereum-based DEXs.
Higher throughput: DYdX Trading can process more transactions per second (TPS) and offer faster confirmation times, thanks to the high-performance consensus algorithm of Cosmos, called Tendermint.
Greater scalability: DYdX Trading can easily scale up its capacity and features by connecting to other blockchains in the Cosmos ecosystem or creating custom modules and zones for specific use cases.
Enhanced user experience: DYdX Trading can offer a smoother and more intuitive interface for traders, with features such as instant trades, limit orders, margin trading, and more.
DYdX Trading also stated that it will continue to support its existing Ethereum-based DEX, which currently hosts over $500 million in total value locked (TVL), and that it plans to bridge its native token, DYDX, to the Cosmos network in the future.
The launch of the open-source code for version 4 of DYdX Trading marks a significant milestone for the DEX industry, as it showcases the potential of using Cosmos as a platform for building next-generation decentralized applications. DYdX Trading invites developers and enthusiasts to join its community and help shape the future of decentralized trading.
According to a blog post by dYdX founder Antonio Juliano, the move was motivated by the desire to align the platform’s values with its users and community. He wrote:
“We believe that decentralization is not only a technological innovation, but also a social one. Decentralization empowers individuals to take control of their own financial destiny and enables new forms of collaboration and coordination that can create positive change in the world.”
As a PBC, dYdX will have a fiduciary duty to consider the interests of all stakeholders, not just shareholders, when making decisions. This means that the platform will prioritize user experience, security, innovation, and social impact over maximizing profits.
Additionally, dYdX will allocate 10% of its revenue to a public benefit fund, which will be used to support projects and initiatives that advance the mission and vision of dYdX. The fund will be governed by a board of directors, which will include representatives from the dYdX community, Juliano also clarified that becoming a PBC does not mean that dYdX will stop being profitable or competitive. He said:
“We believe that being a PBC will actually make us more successful in the long term, as it will help us attract and retain the best talent, partners, and users who share our vision and values. We also believe that being a PBC will give us a competitive edge in the market, as it will differentiate us from other platforms that may have conflicting incentives or agendas.”
The transition to a PBC is part of dYdX’s broader vision to become a fully decentralized and community-owned platform. The platform plans to launch its own governance token in the near future, which will enable users to participate in the decision-making process and benefit from the growth of dYdX.
dYdX is one of the most popular and innovative DEXs in the crypto space, offering users access to various trading products such as spot, margin, perpetuals, and options. The platform leverages layer 2 scaling solutions to provide fast, cheap, and secure transactions. According to its website, dYdX has processed over $40 billion in trading volume since its inception in 2017.
Metaverse Gaming
Metaverse gaming is a rapidly growing industry that promises to revolutionize the way people interact with virtual worlds. However, not all metaverse games are created equal. Some focus on selling virtual land to investors, hoping to create a scarce and valuable asset that can be traded on secondary markets. Others, like The Sandbox, emphasize the role of content creators, who can design and monetize their own experiences within the game.
The Sandbox is a decentralized, community-driven gaming platform that allows anyone to create, own and play games in the metaverse. The game uses blockchain technology to ensure that creators have full ownership and control over their assets and creations. The game also features a native cryptocurrency, SAND, that can be used to buy and sell land, items and services within the game.
The Sandbox cofounder and COO Sebastien Borget believes that metaverse gaming is more about content creation than land speculation. In a recent interview with VentureBeat, he said:
“We think that the value of the metaverse is not in the land itself, but in what you can do with it. The land is just a canvas for your imagination. The real value is in the content that you create and share with others.”
Borget explained that The Sandbox aims to empower creators by providing them with easy-to-use tools, such as VoxEdit and Game Maker, that allow them to make 3D models, animations and games without coding. He also said that The Sandbox offers a fair and transparent revenue-sharing model, where creators can earn up to 95% of the profits from their creations.
“We want to create a virtuous cycle where creators are incentivized to create more and better content, which attracts more players, which generates more revenue for the creators, which motivates them to create even more,” he said.
Borget also shared his vision for the future of metaverse gaming, where he expects to see more cross-platform and cross-game interoperability, as well as more social and immersive features.
“We believe that the metaverse is not a single game or platform, but a network of interconnected experiences that can be accessed from any device. We also think that the metaverse should be more than just a place to play games, but a place to socialize, learn, work and express yourself,” he said.
SEC has 8-10 filings on Bitcoin ETFs in front of the commission.
The U.S. Securities and Exchange Commission (SEC) is reviewing several applications for Bitcoin exchange-traded funds (ETFs), according to its chairman Gary Gensler. In a recent interview with Bloomberg, Gensler said that the SEC has received 8-10 filings from different companies that want to launch Bitcoin ETFs in the U.S. market.
Bitcoin ETFs are investment products that track the price of Bitcoin and trade on stock exchanges. They allow investors to gain exposure to Bitcoin without having to buy, store, or manage the cryptocurrency themselves. Bitcoin ETFs are seen as a way to boost the adoption and legitimacy of Bitcoin, as well as to provide more liquidity and transparency to the market.
However, Bitcoin ETFs also face significant regulatory hurdles in the U.S., as the SEC has not yet approved any of them. The SEC has expressed concerns about the potential for fraud, manipulation, and lack of investor protection in the Bitcoin market, especially in relation to the underlying spot and futures markets. The SEC has also asked for more public input and feedback on various aspects of Bitcoin ETFs, such as valuation, custody, liquidity, arbitrage, and market surveillance.
Gensler, who took office in April 2021, has been seen as a potential ally for the crypto industry, given his background as a former professor of blockchain technology at MIT. However, he has also been vocal about the need for more regulation and oversight of the crypto space, especially in areas such as stablecoins, decentralized finance (DeFi), and initial coin offerings (ICOs). He has also urged Congress to grant more authority and resources to the SEC to regulate crypto assets.
Gensler did not give a timeline or a hint on whether the SEC will approve any of the pending Bitcoin ETF applications. He said that each filing is different and that the SEC will evaluate them based on their merits and compliance with the existing rules and standards. He also said that he is open to dialogue and collaboration with the industry and other regulators to foster innovation and protect investors.
The crypto community has been eagerly awaiting the approval of a Bitcoin ETF in the U.S., as it could potentially trigger a wave of institutional and retail demand for Bitcoin. Several other countries, such as Canada, Brazil, Germany, and Switzerland, have already launched their own Bitcoin ETFs, with varying degrees of success and popularity. The U.S., however, remains the largest and most influential market for crypto assets, and a Bitcoin ETF there could have a significant impact on the global crypto landscape.