dYdX, a decentralized exchange platform (DEX) is planning to provide a fully decentralized order book exchange as it is shifting its ecosystem from Ethereum to the interchain network called Cosmos.
“DYdX is not expanding, dYdX is migrating. So, the Ethereum exchange will close within a few months […] we are migrating the full ecosystem,” speaking about dYdX’s move to Cosmos, d’Haussy said.
Charles d’Haussy, CEO of dYdX Foundation, at the Korea Blockchain Week 2023, spoke about dYdX’s plans to introduce decentralized order books within its exchange.
In the interview, d’Haussy talked about the problems faced by DEXs is that their order books, which are lists of buy and sell orders, can be slow when they operate directly on the blockchain.
To address this problem, DEXs should move their order books off-chain, so they now handle them outside the blockchain to serve better for users.
He further explained, “If you have like a one-second block time, you still have a one-second latency. And the market of crypto derivatives is a very high-frequency market. So, you cannot offer one-second latency.”
D’Haussy emphasized that dYdX is advancing its decentralized efforts by changing the handling of order books. Instead of keeping the order book on the dYdX blockchain, which can be slow, they will now store it on validators’ servers.
Explaining this, d’Haussy said, “So, the architecture choice by dYdX engineers is to decentralize the order book, without adding it on-chain because it will be too slow. The decision was made to essentially host the order book within the memory of the validators.”
Also Read: DYDX Token Skyrockets 10% Overnight as Launch of v4 Nears
