A DeFi blue chip is jumping ship from Ethereum for its next version

Dydx, a major player in the Ethereum ecosystem, is jumping ship to build its fourth release in another Cosmos-related blockchain ecosystem.

Why is this important: Ethereum is the second largest blockchain in the world and is home to all top-notch decentralized finance (DeFi) protocols. The fact that dydx, one of DeFi’s blue chip applications, is making the leap to Cosmos is a major win for this ecosystem.

Driving the news: Dydx, an exchange, announced on Wednesday that it is building its next version using Tendermint, joining the Cosmos ecosystem of blockchains.

By the numbers: Cosmos is currently the 28th largest blockchain by market cap, at $2.1 billion, according to CoinMarketCap.

What they say : “After exploring the landscape of current and upcoming blockchain technologies, we decided that Cosmos would allow us to build the best fully decentralized protocol,” the company wrote in its announcement.

In the weeds: Dydx will actually launch a standalone blockchain to run its new version, in line with the philosophy of Cosmos.

  • Cosmos operates as an integrated network of what it calls “appchains”. Each application has its own blockchain which all communicate easily with each other.
  • Ethereum, on the other hand, is a blockchain that hosts many applications.
  • To note : Anyone can launch a Tendermint blockchain and integrate their application with the larger Cosmos ecosystem. Cosmos-Cap tracks 40 different applications already running on Cosmos.

Be smart: The features offered by dydx are for advanced traders, such as margin and leverage trading. It also offers perpetual markets for long and short positions in many assets.

The bottom line: The announcement promises that this new development will allow the app to increase its throughput to a degree that no other blockchain can match.


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