dYdX community backs token migration to native blockchain

The community of the decentralized exchange dYdX voted almost unanimously in favour of adopting the fourth version of the protocol and migrating the DYDX token to the new blockchain platform.

On July 5, the project team launched a public testnet based on Cosmos and the Tendermint consensus protocol.

The official start of the dYdX mainnet is planned for the end of 2023.

It is expected that after this, on the exchange исчезнет the centralized order book and the order-matching mechanism. The platform will not use AMM algorithms.

A recent proposal was put forward by developer Wintermute. It envisions the community adopting an Ethereum smart contract, commissioned by the dYdX Foundation, that would “facilitate the creation of an autonomous one-way bridge for moving DYDX tokens”.

As a result of the migration, the main token will be replaced by wethDYDX, which will have the same governance functions.

The next vote on the integration is scheduled for September 8.

As a reminder, in August dYdX unlocked 6.52 million DYDX tokens worth $13.82 million.

In April, the decentralized exchange left Canada due to regulatory pressure.