DYDX, the decentralized finance platform that allows users to trade and lend cryptocurrencies using smart contracts on the Ethereum blockchain, will transfer to its own stand alone blockchain, based on Cosmos SDK, to give access to financial services without the need for intermediaries.
What is a decentralized exchange – DYDX?
A decentralized exchange – DEX is a type of cryptocurrency exchange that operates without a central authority. This means that users can trade directly with each other, without the need for intermediaries such as banks or other financial institutions.
Some of the key benefits of decentralized exchanges include increased security, anonymity, and control over funds. DYDX will use smart contracts on its own blockchain to facilitate and settle trades, which provides a way for users to exchange cryptocurrencies.
What is a stand alone blockchain?
A stand-alone blockchain is a blockchain that operates independently and is not connected to other blockchains. This means that it has its own unique set of rules and regulations, and is not interoperable with other blockchains.
Stand-alone blockchains are typically used for specific applications or projects that require a high degree of control and security, in this case for offering a variety of financial products, including margin trading, lending, and borrowing on Cosmos SDK and Tendermint Proof-of-stake consensus protocol. By doing so dYdX V4 can have an extremely high throughput for the orderbook (which remember requires 100x the throughput of trades) while remaining decentralized.
What is Cosmos SDK?
Cosmos SDK is a software development kit (SDK) for building decentralized applications (dApps) on the Cosmos network. It is a modular, scalable, and customizable platform that enables developers to easily create and deploy their own blockchains, as well as connect them to the Cosmos Hub, which is a decentralized network of independent blockchains.
