DYdX to launch decentralized order book exchange on Cosmos: KBW 2023
Decentralized exchange (DEX) platform dYdX plans to offer a “purely decentralized” order book exchange as it migrates its ecosystem from the Ethereum network to the interchain network Cosmos.
At the Korea Blockchain Week 2023, Cointelegraph’s Andrew Fenton spoke with dYdX Foundation CEO Charles d’Haussy about the DEX’s plans to implement decentralized order books on the exchange and how it plans to shift its ecosystem to a new blockchain network.
In the interview, d’Haussy told Cointelegraph that one of the issues faced by DEXs is the slow performance of on-chain order books. Because of this issue, order books for DEXs had to be taken off-chain to cater to the needs of the users. He explained:
D’Haussy highlighted that dYdX is taking a “new step forward” in decentralization by making the order book decentralized. According to the executive, the order book will not be on the dYdX chain because it will still be slow, but it will instead be hosted within the validators.
“So, the architecture choice by dYdX engineers is to decentralize the order book, without adding it on-chain because it will be too slow. The decision was made to essentially host the order book within the memory of the validators,” d’Haussy added.
D’Haussy believes this method is a “new thing within the space.” The executive explained that validators usually validate blocks and create new blocks with a set of transactions. He also said the validators will still do this on the dYdX chain but will also store order books in their memory. “And that’s one solution, which we’ll use to essentially offer to the market a purely decentralized order book exchange,” he explained.
Related: 40% of crypto trading platforms are decentralized: World Federation of
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