Today, we are very excited to announce the v5.0 software update of dYdX Chain, which brings a series of impressive upgrades that will further promote the development of decentralized finance (DeFi). The following are the main contents and features of this update.
1. Introduction of independent markets
One of the most notable changes in v5.0 is the introduction of the standalone marketplace. In the past, dYdX Chain only allowed cross-margining at the protocol level, meaning all markets shared the same collateral pool and insurance fund. Although this design protects the overall risk to a certain extent, it also limits the scope of the available market.
With the introduction of independent markets, each market will have its own mortgage pool and insurance fund, which will protect the solvency and functionality of the entire protocol from the fluctuations of a single market. The change enables over 800 new markets to be listed through governance votes, providing traders with even more options.
2. Isolated Margin: Another important update is the implementation of Isolated Margin. This feature allows traders to trade as independent positions, allowing them to limit collateral to a specific position and manually adjust the collateral for that position. This will greatly improve users’ intuitive understanding and ability to adjust collateral management.
3. Launch of LP vaults: As new markets emerge, so do liquidity issues. To solve this problem, dYdX Chain introduced LP (Liquidity Provider) vaults, allowing users to provide automated liquidity strategies on the protocol. Users can automatically provide liquidity to both sides of the order book by depositing USDC into a liquidity vault.
This vault was created to be permissionless and non-custodial, aiming to increase liquidity in all markets. While the LP vault is not yet available to traders through the front-end in the current version, it is expected to be available to traders in the coming weeks.
4. Integration of Slinky Sidecar and Raydium
In v5.0, dYdX Chain also integrates with Skip Protocol’s Slinky Sidecar and Raydium. This integration will unlock oracle prices for all Raydium assets (Solana) and provide more stable and faster block-by-block oracle updates by removing oracle price updates from the consensus process.
These two integrations are part of an ongoing process to enable the deployer community to effectively bring more markets to the dYdX Chain, further promoting dYdX as the premier place for DeFi trading.
5. Other function updates
In addition to the major updates mentioned above, v5.0 also includes some other important features:
Batch order cancellation: Users can cancel up to 100 short-term orders at one time, which will greatly improve operational efficiency.
Performance improvements: Includes parallel signature verification, further improving overall performance.
Soft Open Interest Cap: When Open Interest (OI) exceeds a configurable cap, the Initial Margin Ratio (IMF) increases proportionally, which helps control risk.
Full node streaming: Allows full nodes to transmit data directly to subscribers through GRPC, enhancing the immediacy and availability of data.
The launch of these new features not only provides users with greater flexibility and control, but also unlocks a world of tokens and usability not previously available on other platforms.
6. About dYdX
dYdX’s mission is to democratize access to financial opportunity. We believe the launch of dYdX Chain represents an important step in achieving this mission, and the community-driven market listing furthers this goal.
If you’re interested in building the future of DeFi, check out our job postings, join the discussion on Discord, participate in the dYdX community, or follow us on Twitter.
For more information, visit dydx.exchange.
Conclusion
With the release of dYdX Chain v5.0, we look forward to more innovation and market opportunities in the future. This update not only improves the functionality of the platform, but also provides users with a safer and more flexible trading environment. Whether you are a newbie or an experienced trader, dYdX Chain will be your ideal choice in the DeFi world.