DeFi

dYdX To Launch Its Private Testnet On March 28

Key Points:

On March 28, dYdX will launch a private testnet of its Cosmos-based blockchain.
The dYdX private testnet will be operational for two to three weeks. Following that, by the end of July, a public testnet will be launched.
This is the second project after SushiSwap to announce the migration from Ethereum to Cosmos.

This Tuesday, dYdX announced the launch of its V4 private testnet, marking a significant step in the decentralized exchange (DEX) depart from Ethereum and toward Cosmos.

For the first time, dYdX is launching a private testnet of its Cosmos-based blockchain, which will be accessible to some external parties. The Cosmos platform will be fully operational by the end of September.

The decentralized exchange is transitioning from StarkEx, StarkWare’s Layer 2 Ethereum network, to its own application-specific blockchain in the Cosmos ecosystem. The platform cited Ethereum’s lack of scalability as the primary reason for the change. It’s a five-stage strategy that emphasizes progressive testing before a full launch.

The network enables developer teams to create their own native blockchains based on their preferences by utilizing the Cosmos Software Development Kit (SDK). Each independent Cosmos-based blockchain can interact with one another, despite their differences.

The dYdX private testnet will go live this Tuesday and will last two to three weeks.

In stage two, the exchange operated an internal testnet for its own engineers to test all of the exchange’s core operations. In the third stage, a private testnet will be made available to whitelisted third parties who will operate as network validators. Going forward, the exchange plans to launch its public testnet in July, followed by a full launch in September.

dYdX will focus on validator development and network upgrades during this private testnet. The validators will also put some of the exchange’s most important trading features to the test.

dYdX, in addition to decentralized spot trading, allows traders to trade assets on margin.

This is the second project to declare its move from Ethereum to Cosmos. SushiSwap is following suit, having recently acquired the Cosmos-based trading platform Vortex Protocol.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.