The decentralized exchange (DEX) dYdX announced Tuesday that it is open-sourcing its code, marking the initiation of the exchange’s v4 upgrade and the much-watched transition from a layer-2 network atop Ethereum to a standalone blockchain in the Cosmos ecosystem.
Open-sourcing code is at the core of the blockchain ethos, bringing transparency for developers thatallows them to conduct reviews, detect bugs and improve the quality.
If the proposal is accepted by the community and passes a governance vote, led by the dYdX Foundation, then the blockchain’s new main network or “mainnet” will go live.
According to dYdX Trading Inc., the initial developer behind the exchange, the v4 upgrade will make the exchange fully decentralized and community operated, meaning that the company will no longer control the protocol and will not collect trading fees, according to a press release seen by CoinDesk.
“I think it's a really exciting moment, to take something that in DeFi that already has a product market fit, where there is a billion dollars traded on average on dYdX every day, and fully decentralize it on a fundamentally new technology stack,” Antonio Juliano, dYdX’s Trading founder and CEO, told CoinDesk in an interview. “I think that's something that hasn't really happened to that level in crypto yet.”
After v4 goes live on mainnet, changes to the stack will be done through governance votes by the community through the dYdX Foundation.
In July, the dYdX test network went live on Cosmos.
Read more: 'We Can't Build Something Like This on Ethereum,' Says DYdX Founder as Mainnet Nears
Edited by Bradley Keoun.
