dYdX Chain, a decentralized exchange protocol known for its advanced trading features, recently completed a significant upgrade. On June 3rd, 2024, the dYdX community voted to upgrade the protocol to dYdX Chain software v5.0.0, and the upgrade was successfully completed on June 6, 2024. The proposal to improve the protocol reflected the community’s engagement.
New Features in dYdX Chain v5.0.0
The upgrade introduces several new features to improve the trading experience and expand the platform’s capabilities. Here are the key additions:
- Isolated Markets: This feature allows users to trade specific assets within a certain market without affecting their positions in other markets, minimizing exposure and risk. Until the update, the system used cross-margining that affected the price movements in other positions.
- Isolated Margin: Isolated margin enables traders to allocate margin to specific trades, so that losses in one trade do not impact the margin available for other trades. This also improves better risk management and control.
- LP Vaults: Liquidity Provider (LP) Vaults allow users to provide liquidity and earn rewards. These vaults are designed to optimize returns by managing liquidity across multiple pools and strategies.
- Slinky and Raydium Integrations: The introduction of the Slinky oracle solution provided by Skip allows the dYdX Chain to retrieve real-time prices from decentralized exchanges on a per-block basis. Initially, the Slinky oracle on the dYdX Chain can access price data from the Solana-based Raydium exchange.
- Improvements and Bug Fixes: The upgrade also includes numerous improvements and bug fixes that will improve the platform’s performance, security, and user experience.
Conclusion
The upgrade to dYdX Chain v5.0.0 is an important step toward realizing dYdX’s vision of permissionless markets. The new features include isolated markets, isolated margin, and LP Vaults, along with integrations with Skip Protocol and Raydium, and will allow users to trade a larger variety of cryptocurrencies in a fully decentralized manner.
