Greetings, dYdX Community !
Why keep resources in a private notes, when they can come handy to others?
Here’s my index on making sense of what has been happening with v4:
The journey started with the blogpost, announcing the vision for a fully decentralised DYDX, which includes decentralising the matching engine, order book and fee distribution.
Next came announcing that v4 will be an app chain based on Cosmos SDK and will utilise Tendermint PoS consensus.
Less than a month later, Antonio joined an AMA to shed light on the v4 product features, governance, Android app, and plans for dYdX Trading.
The v4 Roadmap was split in 5 milestones
- Dev testnet
- Internal testnet
- Private (permissioned) testnet
- Public testnet
Reaching Milestone 2 meant that all basic functionalities for running an exchange had been implemented: Trading Fees, Liquidations, Oracle Price Updates, Static Funding Rates, Token Transfers, Indexing and API Service, along with the necessary tooling to operate the nodes.
Milestone 3 was scheduled to deliver Advanced Order Types, Dynamic Funding Rates, Key-Permissioning & Access Management, and last but not least Web Trading Interface. And so it did.
The blogpost also shed some light on the plans to open source, and give a high level overview on the components of v4: Full Nodes, Validators, Indexers, Frontends (iOS, Android, Web)
More detailed overview on the architecture of v4 was published few months later.
This is also when we got insight on what the order lifecycle will look like.
Several deep-dives followed:
- Indexer - describing the symphony of services that constitute the Indexer bundle
- Front-end - with additional details on how to deploy the web version with IPFS, web3.storage and Cloudflare.
- Governance - disclosing that dYdX v4 is being developed to utilise Cosmos’ x/gov and giving clarity on which aspects of governance will be on-chain and which off-chain upon reaching Milestone 5.
We got to Milestone 4 - the launch of dYdX v4 Public Testnet with all key exchange features implemented, along with a faucet.
A cornerstone - the users can experience v4 Public Testnet for the first time:
The v4 Testnet documentation is also public, with highlights on:
- v4 iOS Testflight Link
- making more v4 repos public on dYdX Protocol’s GitHub
Finally, some additional readings on v4
- The MEV strategy - the vision is to aligns a validator’s incentives with a user’s incentives so that dYdX users are protected from harmful MEV
- More on Decentralisation and why it matters - helpful read for understanding the benefits and trader-offs of decentralised systems
I intend to update this post as v4 progresses and grows, so feel encouraged to provide feedback, ideas and additional resources in the comments