The dYdX Chain, built on the Cosmos network, has achieved a significant milestone with the release of its beta mainnet phase. This milestone marks the commencement of a live trading interface, which was propelled by a community governance vote. According to the blog announcement published on November 13 by dYdX Operations subDAO, the beta mainnet will provide users with a scalable onchain environment.
Transitioning to Beta Mainnet
The dYdX Chain initially went live on October 24, offering up to 2,000 transactions per second (TPS) and decentralized protocols, including an order book. However, through a community vote, it was decided to switch trading on all markets from post-only to active. With the support from over 99% of members, this led to the recent launch of the beta mainnet. The beta mainnet serves as a critical testing phase for live trading, with over 33 active perpetual markets fully operational for trading, providing an impressive 20x leverage to traders.
Growth and Improvements
While the dYdX Chain is fully operational for trading, users can expect frequent stability and interface quality improvements due to its beta structure. At this stage, the new mainnet will not support trading rewards. Instead, validators and stakers will earn a portion of accumulated trading fees. One of the key objectives of dYdX is efficient fee distribution to contributors, surpassing the Ethereum blockchain in terms of speed, throughput, and low fees.
However, there is a challenge of getting stakers to transfer their DYDX tokens from Ethereum to the dYdX Chain. To facilitate this transition, a bridge portal has been created for token transfer, allowing users to deposit DYDX into the smart contract on Ethereum. Traders making this transition will be issued wethDYDX tokens on the dYdX Chain, and the process is expected to take 38 hours to complete. Once completed, users can stake their tokens on the native chain and earn a share of trading fees.
The dYdX platform is committed to transparency, promising to deliver updates to the dYdX community. As the beta phase of the dYdX Chain is now active, it will undergo additional testing to ensure optimal network performance for live trading.
Overall, the release of the dYdX Chain beta mainnet presents a simplified environment for quick and efficient on-chain leveraged trades. With its scalability and low fees, it provides traders with a nascent and responsive base layer for trading in the crypto market.
