dYdX crypto
is sunsetting its v3 on Ethereum allowing developers to further enhance the Cosmos-based chain ahead of Unlimited release.
DeFi is dynamic, and changes are inevitable.
dYdX, which is among the first perpetual decentralized exchanges operating as an Ethereum layer-2 using zk-Rollups, is retiring its v3 platform.
dYdX v3 Will Stop Operating In 4 Weeks
The decision to stop trading on Ethereum means the protocol has completely transitioned, and all trading activity will be on its Cosmos-powered dYdX Chain (v4).
The independent, low-fee, and scalable dYdX Chain launched in 2023, marking a huge milestone for the perpetual exchange.
dYdX, in a post on X, said all traders on v3 on Ethereum will have until October 28 to transition fully.
By the end of this month, they must have withdrawn all funds and close all their leveraged positions.
By October 28, 12:05 PM UTC, trading, deposits, and all Oracle price updates will stop.
Two days later, all v3 smart contracts will be frozen, and all updates won’t be visible.
However, users will still be free to withdraw the full USDC value of their accounts.
Focus on The dYdX Chain
It looks like developers want users to trade exclusively on the dYdX chain, citing the platform’s advantages, including its transparent, open-source code that the community can scrutinize.
At the same time, supporters point out the fast transaction time, true decentralization, and a scalable platform that permits the addition of new markets and features.
As of October 1, the independent dYdX Chain boasts a 24-hour trading volume exceeding $198 million.
There are also 140 markets that have seen traders place over 279,000 trades in the past day alone.
However, supporters expect even more growth in the coming weeks.
dYdX plans to release the dYdX Unlimited in Q4 2024 to enhance user experience.
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Inside dYdX Crypto: Details Of The “Unlimited” Release
Once this version rolls out, the perpetual exchange will be in a position to list unlimited markets.
Accordingly, users will have more choices, including getting crypto exposure and even to the prediction markets.
Interestingly, dYdX says this will be required without governance approval.
Another key innovation will be the launch of the MegaVault. Simply put, this will be a master liquidity pool that will offer instant liquidity for all dYdX Chain markets.
This liquidity will be pooled from USDC deposits from protocol users. For this reason, regardless of the market that lists, traders can instantly place positions.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
