dYdX launches Layer 1 chain with USDC as sole form of fee distribution using Cosmos SDK


The dYdX Basis has launched the dYdX Chain mainnet, a big improvement that enhances the utility of the DYDX token within the realms of staking, safety, and governance.

This proof-of-stake community, constructed using the Cosmos SDK, positions DYDX as its Layer 1 token, additional cementing its function within the dYdX Chain.

In keeping with data shared with CryptoSlate, the primary block of the dYdX Chain mainnet was generated on Oct. 26, marking the start of a brand new period for DYDX.

The inspiration said that the launch was not merely a technical achievement however a declaration of a novel monetary technique. Notably, all protocol charges, together with buying and selling and transaction charges, shall be distributed to validators and Stakers in USDC, eschewing the extra frequent apply of using a platform’s native token.

The dYdX trade amassed a big $137M in charges final yr, making this proposition notably attractive for potential validators and Stakers.

So, what does the dYdX Chain provide stakeholders?

One key facet is the expanded utility of the DYDX token. Initially launched as the governance token of the dYdX Layer 2 protocol on Ethereum (dYdX v3) again in Aug. 2021, the DYDX token’s function has now broadened. The dYdX group voted to undertake DYDX as the Layer 1 token of the dYdX Chain, along with establishing a one-way bridge from Ethereum to the dYdX Chain. Wrapped Ethereum DYDX (wethDYDX) will now share the identical governance utility as ethDYDX in dYdX v3.

DYDX holders can now select to serve as validators or delegate their stake to current validators, in line with commonplace practices in proof-of-stake networks. By staking their DYDX, holders contribute to securing the community and are rewarded with a proportion of dYdX Chain protocol charges relative to their stake weight.

Additional enhancing the safety of the dYdX Chain, validators, who’ve a big financial stake within the community, are liable for verifying and confirming transactions.

As extra DYDX holders stake their tokens throughout a various vary of validators, it turns into more and more troublesome for a coordinated assault to control consensus choices.

The governance facet of the dYdX Chain additionally guarantees elevated accessibility in comparison with dYdX v3, owing to the usual x/gov module throughout the Cosmos SDK. All staked DYDX tokens shall be eligible to be used in dYdX Chain governance, with validators inheriting the voting weight of their Stakers until the latter select to vote personally.

Because the dYdX Basis continues to help and develop the dYdX protocol, this newest evolution guarantees to amplify community-driven progress within the ecosystem.

By enhancing the utility of its native token and introducing USDC as the distribution methodology for protocol charges, the Basis has made a transparent assertion of intent, positioning itself for vital future growth.

Posted In: Cosmos, USDC, DeFi

DailyBlockchain.News Admin

Our Mission is to bridge the knowledge gap and foster an informed blockchain community by presenting clear, concise, and reliable information every single day. Join us on this exciting journey into the future of finance, technology, and beyond. Whether you’re a blockchain novice or an enthusiast, is here for you.
Back to top button