Communication dYdX is looking at full decentralization
dYdX mainly offers perpetual contracts. Currently, only certain components of dYdX decentralized, including smart contracts Ethereum, 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 (DeFi) offers compared to other centralized financial services are:
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 multisig. 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.
“These so-called decentralized finance platforms are really very centralized. There is a group of entrepreneurs running these platforms.”