dYdX publishes its open-source code in anticipation of phased mainnet launch

Crypto exchange dYdX has published the open source code for its new Cosmos-based network of the same name, according to an October 23 blog post. The new code includes the “protocol, order book, interface and more,” the post said. The release of the code aims to pave the way for the mainnet launch, which is being organized by the Operations SubDAO of the dYdX Decentralized Autonomous Organization (dYdXDAO).

1/ It's finally here

Today, we are proud to introduce and fully open-source the entire dYdX chain!

This is the next chapter of dYdX and we are very excited to have it here.

Let's get into the details:https://t.co/ydil2jkqJs

- dYdX (@dYdX) October 24, 2023

DYdX is one of the largest non-custodial cryptocurrency exchanges, with over $2.6 billion in daily trading volume, according to Coingecko. However, it relies on a centralized order book to connect traders with market makers. Due to this backlog, it is sometimes considered not truly decentralized.

The dYdX team has been trying to create a new dYdX chain based on Cosmos which they say will allow them to decentralize the exchange's order book, taking the protocol out of the hands of the development team and making it truly decentralized. They launched a test network of the new network July 5th. DYdX currently runs on StarkEx, a layer 2 of Ethereum.

Related: Evmos, Swing, Tashi and Wormhole join forces to solve Cosmos' liquidity problems

According to the October 23 post, the new code will allow the dYdX infrastructure to “run globally via DeFi.” [decentralized finance] enthusiasts.” Once the mainnet launch is complete, the dYdX development team “will not be running any part of the infrastructure behind any deployment of the new dYdX chain.” The team did not indicate an official release date for the mainnet. Instead, he stated that readers should "check out the dYdX operations subDAO blog post" for more information.

In a post on October 4, the dYdX trading subDAO proposed a gradual launch of the main network. The proposed alpha phase will allow token holders to stake their tokens and earn rewards for staking, but no transactions will be possible. The beta phase will allow trading and allow further testing to be done. The post does not indicate a release date for any of the phases.