The Ethereum Layer-2-based crypto derivatives trading platform dYdX made a statement that it will be “100% decentralized” by the end of 2022.
Currently, only a few components of dYdX can be considered decentralized. These include Ethereum smart contracts, management and stacking. As for the order book and matching mechanism, they are managed by the team that developed the dYdX Trading Inc. platform.
In its blog, dYdX explained that the main aspects of the decentralization work will be the order book and management mechanism. In addition, the team anticipates that the biggest challenges will be scaling bandwidth and ensuring completeness and fairness in a decentralized way.
Earlier on Twitter, the dYdX team announced a V4 update and a new roadmap. The dYdX V4 version will be fully decentralized, and all aspects that can be controlled will be given full control by the community.
The roadmap also underlines the improvements that decentralized finance (DeFi) can provide:
DeFi offers a significant improvement in transparency. For the first time, the financial system itself is no longer a secret for users. Thanks to DeFi, users will trust the code rather than corporations.
Moreover, the V4 update indicates that dYdX Trading Inc. will not charge trading fees. In addition, the platform aims to provide more products and services, which include synthetic products as well as spot and margin trading.
It should be noted that other organizations in the crypto space are also moving toward full decentralization. For example, MakerDao announced in 2021 that it also intends to move to 100% decentralization.