Introduction
After rigorous testing and development, dYdX is transitioning to the Cosmos ecosystem as a standalone blockchain—dYdX Chain—built using the Cosmos SDK. This upgrade (v4) introduces a decentralized, off-chain order book system managed by validators, marking a pivotal shift toward scalability and decentralization.
Key Highlights
- Genesis Validator: Chorus One joins as a genesis validator, enabling staking for the DYDX token.
- Trading Milestones: Over $1 trillion in total trading volume processed via Ethereum smart contracts.
- Innovation: Off-chain, in-memory order book for high-throughput trading.
Part 1: The dYdX Chain
The Evolution of dYdX
dYdX is the leading decentralized exchange (DEX) for perpetual contracts, leveraging an order book model (unlike AMM-based DEXs).
Development Timeline:
- 2017: Launched as an Ethereum L1 app (high fees, low scalability).
- L2 Shift: Migrated to StarkEx/StarkNet (lower fees, higher centralization).
- 2023: Transitioned to Cosmos SDK to prioritize decentralization and scalability.
👉 Explore Cosmos SDK advantages
Why Cosmos?
dYdX chose Cosmos for:
- Customizability: App-specific chains with independent validators and tokens.
- Throughput: Processes 10,000 TPS vs. Ethereum’s 15–25 TPS.
- Decentralization: Eliminates network congestion risks.
How dYdX Works on Cosmos
- Validators maintain off-chain order books.
- Orders are randomly routed to validators for dissemination, ensuring synchronization.
Key Features of dYdX v4
| Feature | Description |
|---------|------------|
| Off-Chain Order Book | Decentralized, high-throughput trading. |
| Gas-Free Trading | Fees based on trade execution (paid in USDC). |
| DYDX Token | Powers staking, governance, and fees. |
| Security | Audited by Informal Systems. |
Part 2: Staking DYDX with Chorus One
Why Stake with Us?
Cosmos Expertise:
- Active investors in Celestia, Osmosis, and Agoric.
- Published research reports on Cosmos governance.
MEV Leadership:
- In-house quant team analyzing cross-chain MEV opportunities.
- Authored dYdX’s MEV mitigation report (read here).
Governance Participation:
- 100% voting record on multiple Cosmos chains.
Tokenomics
- Total Supply: 1B DYDX tokens.
Allocation:
- 50% to community (traders, LPs, treasury).
- 27.73% to investors.
- 15.27% to team.
FAQs
1. What is dYdX Chain?
A standalone Cosmos-based blockchain for decentralized perpetual trading with an off-chain order book.
2. How does staking work?
Stake DYDX to earn USDC fees from trades. No gas fees apply.
3. Why is Cosmos ideal for dYdX?
High TPS (10,000+), customizability, and validator independence.
4. How secure is dYdX v4?
Audited by Informal Systems; funds remain non-custodial.
5. What’s Chorus One’s role?
Genesis validator, MEV researcher, and governance leader.
Conclusion
dYdX v4 merges decentralized finance with institutional-grade trading. Stake DYDX with Chorus One to leverage our Cosmos expertise and MEV insights.