dYdX to launch its own Cosmos-based blockchain

On March 28, the decentralized exchange dYdX will launch a private testnet based on Cosmos and the Tendermint consensus protocol as the third phase of the transition to its own blockchain.

We are back with another update regarding our progress building out the dYdX V4 Blockchain; we are excited to announce the completion of our third of five milestones! You can read more at: https://t.co/WlWdZHQy2k

— dYdX (@dYdX) March 27, 2023

Over the next two to three weeks, a limited set of validators will test the network’s functionality, including exchange trading.

Technically, the team has delivered the following for this phase:

• advanced order types;
• dynamic funding rates;
• use of ABCI 2.0 and a number of Cosmos-SDK features;
• web trading interface.

Developers have also published documentation for validators.

In the fourth phase of the transition, at the end of July 2023, the platform will open a public testnet. A full network launch is planned for September.

The exchange currently uses StarkEx, a Layer 2 solution for Ethereum scaling from the startup StarkWare.

“dYdX V4 is a fully sovereign blockchain, not dependent on any external networks or systems. It is a community platform that enables continued vertical integration, where holders of the protocol’s tokens fully control the platform,” according to the project description.

Earlier in March, experts from Verichains publicly disclosed several critical vulnerabilities in the Tendermint protocol’s consensus mechanism.