Decentralized exchange (DEX) dYdX has revealed the launch date for its move from Ethereum to Cosmos, taking a significant step towards scalability. The platform announced the launch of its V4 private testnet, set to run for two to three weeks from this Tuesday. By the end of September, dYdX will be fully running on Cosmos, allowing developers to spin up their own native blockchains using the Cosmos Software Development Kit (SDK). Each independent Cosmos-based blockchain can interact with one another, and dYdX cited the lack of scalability on Ethereum as the primary reason for the move.
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The platform's marketing lead, Nathan Cha, said that the team had explored various options, including Solana and layer-2 solutions. However, Cosmos was the best choice because the blockchain can be customized to the platform's needs. "Now we can handle transactions at a faster pace," Cha added. SushiSwap also announced a similar move last month after acquiring the Cosmos-based trading platform Vortex Protocol.
dYdX was launched in 2017 by Antonio Juliano, a software engineer who previously worked at Coinbase and Uber. The platform currently has roughly $341.5 million in total value locked (TVL), according to DeFi Llama. Although decentralized exchanges like dYdX, Uniswap, and Curve are growing, they still account for a small share of transactions compared to centralized exchanges. For instance, trading volume over the past day saw Uniswap facilitate over $642 million in orders, while Binance processed more than $4.28 billion in trades over the same period.
Vice President of the dYdX Foundation, David Gogel, said that the collapse of FTX in November 2022 did not significantly change the proportion between centralized and decentralized exchanges. Gogel added that there is still a lot of work to do to educate people on self-custody as it is a complicated journey.
