{"id":62941,"date":"2023-10-27T13:39:37","date_gmt":"2023-10-27T17:39:37","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=62941"},"modified":"2023-10-27T13:40:04","modified_gmt":"2023-10-27T17:40:04","slug":"dydx-deploys-layer-1-blockchain","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/dydx-deploys-layer-1-blockchain\/","title":{"rendered":"dYdX Deploys Layer-1 Blockchain"},"content":{"rendered":"\n

The creation of the genesis block by chain validators marks the successful launch of dYdX's layer-1 proof-of-stake<\/a> blockchain.<\/p>\n\n\n\n

\"dYdX<\/figure>\n\n\n\n

dYdX, a decentralized cryptocurrency exchange, has inaugurated its layer-1 blockchain with the creation of its genesis block, which will utilize DYDX tokens.<\/p>\n\n\n\n

The dYdX Chain is configured to pay all validator and staker fees in USD Coin.<\/p>\n\n\n\n

This includes trading fees denominated in USDC as well as gas fees for transactions denominated in either DYDX or USDC.<\/p>\n\n\n\n

The proof-of-stake (PoS) blockchain network was constructed with the Cosmos software development kit and utilizes the CometBFT consensus protocol.<\/p>\n\n\n\n

Validators stake DYDX in order to secure the blockchain and conduct network governance operations.<\/p>\n\n\n\n

\n

The launch of the dYdX Chain network itself spanned a massive number of companies:

\ud83d\ude80 @dydx_ops_subdao\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> coordinating genesis & launch generally + hosting indexer & frontend
\ud83c\udfdb @dydxfoundation<\/use><\/svg><\/span><\/a> coordinating community governance
\ud83d\udcb2 @noble_xyz<\/use><\/svg><\/span><\/a>, @circleapp<\/use><\/svg><\/span><\/a>, @coinbase<\/use><\/svg><\/span><\/a> for launching\u2026<\/p>— Antonio (@AntonioMJuliano) October 26, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

Antonio Juliano, the founder of dYdX, emphasized that the introduction of the dYdX Chain was contingent upon Circle and Coinbase<\/a> launching on Cosmos prior to the creation of its genesis block.<\/p>\n\n\n\n

Juliano previously characterized dYdX as an “entirely new blockchain built on the Cosmos SDK” and the “first-ever decentralized, off-chain orderbook.” Additionally, the blockchain is wholly open-source.<\/p>\n\n\n\n

Before the launch of dYdX's native layer-1 chain, DYDX was an ERC-20 token functioning on dYdX's original Ethereum layer-2 protocol.<\/p>\n\n\n\n

The dYdX community <\/use><\/svg><\/span><\/a>voted to adopt DYDX as the L1 token of the dYdX Chain, adopt a one-way bridge from Ethereum to the dYdX Chain, and give encased Ethereum DYDX (wethDYDX) the same governance utility as ethDYDX in dYdX v3.<\/p>\n\n\n\n

Due to community votes and governance decisions, the DYDX token's utility on the dYdX Chain has expanded to include staking, network security, and participation in governance.<\/p>\n\n\n\n

Similar to Ethereum's transition to PoS, validators, and stakers secure and protect the network in exchange for dYdX protocol tokens proportional to the amount of staked assets.<\/p>\n\n\n\n

Through the Cosmos<\/a> distribution module, fees collected by the dYdX Chain protocol are distributed to validators and staking parties.<\/p>\n\n\n\n

A dYdX announcement emphasized the company's anticipation that governance on the dYdX chain will be more accessible than its previous Ethereum-based layer-2 protocol.<\/p>\n\n\n\n

\n

“The dYdX Chain does not have the dYdX v3 concept of ‘Proposing Power'; instead, the governance module effectively enables any holder to create a governance proposal with a deposit.”<\/p>\n<\/blockquote>\n\n\n\n

Anti-spam provisions include minimum deposit requirements and voting mechanisms with veto powers.<\/p>\n\n\n\n

To participate in blockchain governance, users can only stake DYDX tokens.<\/p>\n\n\n\n

Unless specific stakers choose to vote on proposals individually, chain validators will also inherit the voting weight of stakers.<\/p>\n","protected":false},"excerpt":{"rendered":"

The creation of the genesis block by chain validators marks the successful launch of dYdX’s layer-1 proof-of-stake blockchain. dYdX, a decentralized cryptocurrency exchange, has inaugurated its layer-1 blockchain with the creation of its genesis block, which will utilize DYDX tokens. The dYdX Chain is configured to pay all validator and staker fees in USD Coin. […]<\/p>\n","protected":false},"author":56,"featured_media":62952,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,130],"tags":[5508,5684,197,1400],"class_list":["post-62941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-blockchain-news","tag-blockchain-2","tag-decentralized-exchange","tag-defi","tag-dex"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/10\/shutterstock_2149934791.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/62941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=62941"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/62941\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/62952"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=62941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=62941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=62941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}