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Author: Paul Veradittakit, Pantera Capital Partner; Translation: Bit Chain Vision Xiaozou
Points in this article:
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We believe that DYDX V4 is a major upgrade in the field of decentralized finance (DEFI).
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The transaction volume of the platform exceeded $ 1 trillion, and the COSMOS SDK launched a more autonomous and scalable blockchain infrastructure, which strengthened the throughput, decentralization, and the alignment of pledges.
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DYDX’s permanent futures transaction provides higher capital efficiency and adaptability for the encryption market.
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Dydx V4 turns into an independent blockchain, which solves the problem of throughput/scalability, bringing better decentralization and sovereignty characteristics.
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In short, we believe that DYDX V4 breaks through the boundary of DEFI and provides a more efficient, safer, and more user -centric trading environment.
1. Introduction to DYDX
In the field of changing decentralized finance (DEFI), DYDX has become a pioneering agreement, which significantly promotes the transactions of sustainable futures contracts (often known as “PERPS”).It is very different from the long -term traditional centralized exchange that dominates the financial sector.
Sustainable futures contract is the core of DYDX.These financial instruments have a significant position in encrypted transactions because of their own uniqueness.Unlike traditional futures contracts, PERPS does not have a fixed expiration date.This means that traders can hold their positions indefinitely and avoid the risk of Rollover.The pricing of these contracts is affected by the bulls and short position balance, and directly determines the interest rate of regular settlement funds between traders.This innovative permanent futures contract method forms a more dynamic and adaptive trading environment, which is very suitable for the 24/7 all -weather nature of the cryptocurrency market.
However, this transformation surpasses the category of permanent futures and represents the fundamental transformation of the cryptocurrency sector to the centralized exchange (DEX).This transformation is driven by multiple factors, including regulatory pressure and restrictions facing the centralized exchanges.DEX like Dydx aims to provide a platform -based platform, bringing higher degree of decentralization and autonomy to user’s assets and transaction decisions.Dydx is unique in their unique capabilities: to give traders a greater leverage, enabling them to amplify their transaction positions 20 times to mortgage, injecting new opportunities for DEFI transaction strategies and broader risk management strategies.
Considering the progress of decentralized finance, it is obvious that 2023 is a year when DYDX has grown sharply and pioneered for progress.The platform has made great progress in this year, such as DYDX successfully upgraded to V4, transaction volume exceeded $ 1 trillion, and so on.This progress shows that the transformation of the DEFI transaction model highlights higher throughput, user sovereignty and comprehensive financial instruments.Its V4 upgrade plan raises this pioneering agreement to a new level.The upgrade content includes deploying a customized chain based on the COSMOS SDK and supplemented by the decentralized chain order book and matching engine.I believe this is a major leap in the DEFI field in terms of efficiency, scalability and innovation.
2. COSMOS: powerful infrastructure
The COSMOS network is a revolutionary ecosystem to solve scalability and interoperability problems in the blockchain field.It envision to create a “blockchain Internet”. Among them, different blockchain can maintain sovereignty, deal with transactions quickly, and communicate with each other in a decentralized manner.The network is supported by the consensus algorithm of the equity proof, and its native currency ATOM is used for governance and transaction costs.COSMOS SDK is the framework of building a blockchain in the network. With its modular design, it stands out, so that developers can efficiently create customized interoperable applications.This infrastructure is the basis for achieving scalable interconnected DAPPs. It lays the foundation for advanced platforms such as DYDX V4 to enhance DEFI transaction performance and user experience.
3. The necessity of DYDX V4
The demand for DYDX V4 comes from the comprehensive factor of technical restrictions, market demand, and a strategic vision for the future of decentralized finance.With the booming Defi field, users are seeking high throughput platforms that can be quickly and continuously traded.The high GAS fee further exacerbated this problem, and the profitability of users and the platform decreased.Dydx V4 uses COSMOS SDK to be converted into an independent blockchain. By promising to greatly increase transaction throughput, reduce transaction costs and can tailor the logic of complicated and high -frequency transaction demand, which directly solves these challenges.This upgrade is not just a one -one -one -performance enhancement. I believe this is a necessary evolution to maintain and expand the leadership of DYDX in the leading position of DYDX in the DEFI market that is competitive and developing.
4. Dydx uses cosmos SDK to create its own chain
Dydx uses COSMOS SDK to create its own chain, while DYDX V4 marks DYDX as a major leap in the operation of independent blockchain.This strategic upgrade contains a chain order book and matching engine, which is designed for providing high throughput. It is a comprehensive maintenance of the platform infrastructure.The transition to the dedicated chain is expected to not only increase the transaction throughput of 100 times, but also provide a nearly zero GAS fee to achieve more complex chain logic and expand the scope of decentralization.These new enhancements are carefully designed for the scalability and response capabilities of the upgrade platform. They are accepted to meet the complicated needs of today’s traders and set unprecedented standards in the development and change of DEFI.
Choosing COSMOS as the underlying framework further strengthened these advantages.COSMOS is famous for its strong performance and firm decentralized commitment, which is perfectly consistent with the demand of a decentralized exchange.Its architecture aims to significantly improve scalability and interoperability, thereby shortening transaction time and reducing transaction costs.These characteristics jointly enhanced the trading experience.In addition, the decentralization of COSMOS is consistent with the vision of DYDX, that is, to cultivate a flexible and less centralized ecosystem, which is essential for reducing regulatory risks and enhancing user sovereignty.Therefore, these factors promote the platform to move towards more advanced, more efficient, and more sustainable decentralized transactions.
5. DYDX team
The advantage of the project is its powerful and solid management team, which consists of encrypted native founders with rich traditional software and financial backgrounds.The founder and CEO of Dydx Trading Inc., Antonio Juliano, was a software engineer of Uber, Coinbase and MongoDB and was experienced. In 2015, he obtained a scientific degree of computer science from Princeton University.The teammates who fought side by side are George Xian Zeng, chief operating officer. He is not only the co -founder of an e -commerce personalized AI discount tool company, but also the product director of Facebook and the senior manager of McKinsey.His educational background is the Master of Business Administration of Wharton School of Business and the financial degree of Princeton University.In addition, Charles D ’HAUSSY, the CEO of the Dydx Foundation, has served as the head of global business development and the general manager of the Asia -Pacific region in Consensys.Prior to this, he was the financial technology director of the sovereign wealth fund Invest Hong Kong.This experienced diversified team has the ability to promote the successful acquisition of the project in the encryption field.
6. Conclusion
In short, I believe that DYDX V4 is a major leap in the field of decentralization.The upgrade solves the key problems facing the DEFI platform and provides a unique solution.By migrating to COSMOS SDK and creating its own chain, the DYDX V4 promises to bring stronger performance, lower cost and larger decentralization.The positive attitude and improved data privacy measures to the miners’ extraction value (MEV) further enhanced their attractiveness to traders.With a strong team at the helm, I believe that DYDX has been prepared to lead the development of the development of Defi to set new standards for efficiency, security and user empowerment.In essence, DYDX V4 is a milestone. It expands the possibility of decentralized finance and has opened up exciting opportunities for traders and the entire DEFI community.
