dYdX unveils layer-2 protocol for perpetual-contract trading

The decentralized cryptocurrency derivatives exchange dYdX announced the launch of a layer-2 protocol on the Ethereum mainnet. The solution will enable cross-margin perpetual contracts trading with zero gas costs.

The platform pledges to cut fees and minimum trade limits, and to provide greater user privacy.

The protocol was developed by the exchange in collaboration with the StarkWare startup, built on the StarkEx engine and a custom implementation of ZK-Rollup technology called zkSTARKS.

The exchange launched the solution in closed-alpha testing. A full network launch is planned several weeks after stability checks.

dYdX stressed that Ethereum’s low throughput of 15 TPS does not meet the needs of the DeFi sector.

Initially, users will have access to perpetual swaps in BTC/USD, ETH/USD, and LINK/USD pairs settled in the USDC stablecoin. The platform intends to expand the range of contracts with a focus on DeFi project tokens.

Simultaneously with the protocol launch, the exchange carried out a rebranding and unveiled an updated interface.

In May 2020, dYdX raised $10 million following a Series B funding round. It was led by Three Arrows Capital and DeFiance Capital.

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