• dYdX crypto exchange launched public testnet for its “v4” iteration.
• v4 is expected to allow for “full decentralization” of the exchange by removing its centralized components.
• Testnet features an on-chain order book and matching engine, allowing users to place virtual trades, view profit and loss, and more.
dYdX Exchange Launches Testnet for ‘Fully Decentralized’ Version 4
Crypto exchange dYdX has launched a public testnet of its “v4” iteration, according to a July 5 announcement from the exchange’s development team. This marks the completion of “milestone 4” out of five, paving the way for a future v4 mainnet launch.
What Does V4 Mean?
Once implemented on mainnet, v4 is expected to allow for “full decentralization” of the exchange by doing away with centralized components found on the mainnet version. The testnet features an on-chain order book and matching engine that allows users to place virtual trades, view profit and loss, and more.
How Does it Work?
The dYdX exchange is built on the Ethereum and StarkEx networks. Because it does not take custody of users’ funds, it is generally considered to be a decentralized exchange (DEX). Version four will eliminate this centralized order book and matching engine by running parts of the app on a separate dYdX network with its own validators.
TestNet Features
Users can request testnet funds as of 5:00 pm UTC on July 5th to try out basic functions such as placing virtual trades or viewing profit/loss. The ability to bridge between different networks has not yet been implemented but will come over time.
Future Plans
Once the testnet phase is completed, the protocol’s team plans to implement stablecoins into dYdX as well as support for Cosmos Inter-Blockchain Communication so that Cosmos users have access to use it too.