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.
Once implemented on mainnet, V4 is expected to allow for “full decentralization” of the exchange.
v4 Testnet is officially live https://t.co/TD5caN6VSQHere are all the links you may need for easy access!Public Testnet: https://t.co/BZ57SvuXNvTestnet Status Page: https://t.co/7vkrGZs9fxv4 Documentation: https://t.co/tKTUWacKldFeedback and Block Explorer links
dYdX is a crypto exchange built on Ethereum and StarkEx networks. Because it does not take custody of users’ funds, it is generally considered to be a decentralized exchange (DEX). However, it does feature a centralized order book and matching engine that allows market makers to place limit orders. This contrasts with automated market-maker DEXs like Uniswap that employ on-chain pricing algorithms to match buyers and sellers.
Version 4 of dYdX will eliminate this centralized order book and matching engine, making the exchange fully decentralized, but without relying on an automated market-maker. According to the protocol’s documentation, it will do this by running parts of the app on a separate dYdX network with its own validators, allowing the order book to be stored on-chain.
Related: GMX and dYdX go head-to-head for the top decentralized derivatives position
According to the announcement, users can request testnet funds to try out the app as of 17:00 UTC on July 5, allowing them to place virtual trades, view profit and loss, and perform other basic functions of the exchange. The ability to test bridging from one network
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