dYdX “escapes” from Ethereum

Original author: fyj, 0x711, BlockBeats

On June 23, dYdX announced that it will transfer to the Cosmos ecosystem, which will be based on The Cosmos SDK develops custom application chains and implements migration in the upcoming dYdX V4 version. This may be the first time that a well-known Ethereum-native DeFi application in the industry chose to flee.

The founder Antonio’s words are meaningful: “When choosing a chain, I think people should not think about what kind of users there are on this chain, but should Think about what kind of product experience this chain can achieve.”

The application layer has suffered from Ethereum for a long time, As early as November last year, dYdX founder Antonio publicly questioned the improvement of Ethereum on Twitter Efficiency, the talk has revealed that it is considering transferring dYdX to other chains.

Antonio believes that over the years, Ethereum There is a lack of technology implementation, and dYdX's goal is to become a DEX that is "ten times the current scale and can compete with centralized trading platforms in terms of experience".

For a long time, Antonio has shown himself as a product manager in the industry. As one of the earliest DeFi projects, dYdX has long been committed to developing mobile applications and trying to make decentralized applications (Dapp) into the mass market. In the migration announcement, dYdX mentioned that the team is not satisfied with the current transaction speed of 10 transactions per second and the order/cancellation performance of 1000 transactions per second, and expansion needs to build a centralized off-chain order matching system, which is different from dYdX's decentralized The positioning of the chemical transaction does not match. Therefore, in V4, dYdX will build a decentralized off-chain order system, taking into account both performance and concept.

But just because the Ethereum ecosystem really can’t meet the needs of dYdX? The community believes that the reasons behind Antonio's decision may be more complex and multifaceted.

Encrypted KOL polynya said that, technically speaking, the required chain performance of dYdX V4 can be achieved by Rollups. Therefore, it may make this decision out of chain sovereignty and timing considerations. First, the rollup technology was too late to be ready for prime time; second, there was not enough demand in the industry to demand a rollup. In addition, using dYdX as an ecological token may have chain security and sustainability issues.

In response, Antonio responded that the migration does have chain sovereignty considerations, and dYdX monopolizing a chain will make it easier for the protocol to recover from loopholes (fork). In terms of security, the initial stage of the new chain will control the number of nodes to ensure security.

For rollup technology, Antonio said that he is pessimistic about the future expansion of rollup, "dYdX is the largest dapp on rollup, too Learn about rollup."

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Crypto analyst @EffortCapital said the impact of dYdX's choice of Cosmos as a DeFi OG should not be underestimated. Other crypto KOLs are not optimistic about this decision because they do not understand the Cosmos ecology.

Additionally, Chainlink Community Ambassador @ChainLinkGod and Cosomos Ecological developer Zaki and others welcomed and looked forward to the migration.

Solidity developer 0xTomoyo analyzed the migration reasons in depth from a technical perspective. The current dYdX order book is run on an off-chain centralized server, and L2 is only used to settle matching trades. In theory they could build an order book with in-memory on L2, but currently no such tool exists. Therefore, dYdX chose to build a new chain on Cosmos, with each validator running an in-memory order book. This further realizes the decentralization of the protocol.

StarkNet co-founder @TobbyKitty said bluntly that the biggest reason for migrating to Cosmos is to allow dYdX Token to run verification nodes on the new chain and lock the protocol value, but in L2 It won't work.

Finally, in response to the general doubts of the community Should decisions be voted on by the dYdX DAO, Antonio responded, "The DAO will The decision is voted on. It's just software the company is developing and the protocol can choose to use it or not."

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The protocol layer pushes the developer-friendly workload to Layer2, and there is another A large number of API providers and node service providers such as Infura, InfStones, etc., have the development work become easier or more difficult after years of ecological accumulation? It is not difficult to feel that Antonio is tired of following the rhythm of Ethereum again and again.

Whether the ecology breeds the application or the application feeds back the ecology, it is not a matter of the east wind overwhelming the west wind, and the contradictions in different periods Different aspects lead the development of things.

Just what dYdX tells us, in the moment It's time, rather than arguing who is the boss of Layer2, maybe we should listen to the voices of product managers.

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