Derivatives trading platform above layer-2 announced that it will develop “decentralized 100%” through the V4 update of the protocol.

Communication dYdX is looking at full decentralization

mainly offers perpetual contracts. Currently, only certain components of decentralized, including smart contracts , governance and staking. However, its order book and execution engine are managed by dYdX Trading Inc. – the team that developed this platform.

dYdX announced the V4 update on Twitter yesterday with a new roadmap. In a blog, dYdX explained that the key aspect of fully decentralizing the platform is the focus on its order book and matching engine. The team notes that the main challenges will be scaling throughput (transaction processing capacity), finality (off-chain transaction matching) and fairness (miners are unable to extract value). from legitimate transactions) in a decentralized manner.

“With V4, dYdX will become completely decentralized. There will be no more central control points, all aspects of the protocol that can be controlled will be completely controlled by the community.”

Outlining why the platform is fully decentralized, dYdX highlights the fundamental innovation that decentralized finance () offers compared to other centralized financial services are:

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" provides a huge improvement in transparency. For the first time, the financial system itself is no longer a black box for users. With , users can trust the code instead of corporations”.

Update V4 says dYdX Trading Inc. will not receive transaction fee information in the future. In addition, the platform will also launch more products and services, such as aggregate and margin trading, spot.

While many DeFi projects often advertise themselves as “decentralized” (due to smart contracts and automated settings), such projects are often controlled by a small group with access to admin key . This key gives them a "divine" authority over the protocol. This is often a useful strategy for recovering from errors during foundation construction, but poses a centralization risk.

Chairman of the United States Securities and Exchange Commission (U.S. Securities and Exchange Commission)), Gary Gensler argues that DeFi mostly focused in an interview last August.

“These so-called decentralized finance platforms are really very centralized. There is a group of entrepreneurs running these platforms.”

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