Decentralized Exchange dYdX Announces Open-Sourcing of Code and Transition to Cosmos Ecosystem

According to CoinDesk, decentralized exchange (DEX) dYdX has announced that it is open-sourcing its code, initiating the exchange's v4 upgrade and transitioning from a layer-2 network on Ethereum to a standalone blockchain in the Cosmos ecosystem. Open-sourcing code is a fundamental aspect of the blockchain ethos, providing transparency for developers to conduct reviews, detect bugs, and improve quality. If the proposal is accepted by the community and passes a governance vote led by the dYdX Foundation, the blockchain's new main network, or 'mainnet,' will go live.The v4 upgrade, according to dYdX Trading Inc., the initial developer behind the exchange, will make the exchange fully decentralized and community-operated. This means that the company will no longer control the protocol and will not collect trading fees. Antonio Juliano, dYdX's Trading founder and CEO, expressed excitement about the development, stating that it is a significant moment for DeFi, as dYdX already has a product market fit with an average of a billion dollars traded daily. After the v4 upgrade goes live on mainnet, changes to the stack will be made through governance votes by the community via the dYdX Foundation. In July, the dYdX test network went live on Cosmos.