CosmosDYDX (DYDX)

Launched initially on Ethereum’s network as a Layer 2 decentralized exchange (DEX), DYDX transitioned to the Cosmos ecosystem in 2023, affirming its commitment to a decentralized trading environment. This strategic shift aimed to lower transaction fees, improve the platform’s scalability, and achieve quicker transaction processing, catering to the evolving needs of its users for more efficient and cost-effective trading experiences.

The launch of the DYDX Chain on October 26, 2023, marked by the creation of its inaugural block, signifies a new era for the platform. As a proof-of-stake blockchain crafted with the Cosmos SDK and CometBFT consensus, it heralds the adoption of dYdX as its primary Layer 1 token. This adoption, decided through community voting, underscores DYDX’s integral role in staking, securing the network, and guiding governance, thus supporting the platform’s shift towards a more community-centric and decentralized framework.

The wethDYDX Smart Contract plays a pivotal role in transitioning ethDYDX, the governance token, from its Ethereum-based structure to the DYDX Chain. This move is vital for reinforcing the governance of the dYdX Layer 2 Protocol (“DYDX v3”), aligning it with the community’s requirements and the broader objectives of the network’s infrastructure.

DYDX offers leveraged and margin trading, perpetual contracts, governance through DYDX token holding, staking rewards, liquidity mining incentives, and ensures low transaction fees and quick settlements in the DeFi space.