dYdX Announces Major Upgrade to Its Blockchain Network

Decentralized finance platform dYdX (DYDX +4.65%) announced on Tuesday that it will be implementing a significant upgrade to its blockchain network this coming fall. This upgrade is touted as the “biggest upgrade” to the dYdX Chain since its inception.

Key Features of the Upgrade

Titled dYdX Unlimited, this upgrade will enable users to list new token trading markets without needing approval from governance. Users will be able to create a “virtually unlimited” number of markets, as long as they have an oracle price from Raydium, Ethereum, Base, or any centralized exchange.

To launch new markets on dYdX, users will need to deposit a specific amount of USDC into the new liquidity mechanism known as MegaVault. The amount required for the deposit will be determined by governance.

About dYdX Chain

dYdX Chain, or dYdX version 4, operates as a Cosmos app chain that supports trading of crypto token derivatives. According to data from The Block’s dashboard, dYdX v4 has emerged as one of the top decentralized perpetual swaps platforms, achieving a trading volume exceeding $900 million on Tuesday alone.

MegaVault Feature

What is MegaVault?

MegaVault will serve as the liquidity pool and act as a market maker for dYdX chain, ensuring adequate liquidity across all markets. According to the announcement, “Providing liquidity on dYdX through MegaVault is passive. Users do not need to select specific markets for liquidity; they simply deposit USDC into the MegaVault.”

This new liquidity mechanism allows anyone depositing USDC to partake in revenue generation from MegaVault. Users will share in MegaVault’s profits and losses while also receiving a share of the protocol’s revenue, as determined by governance.

Additional Updates

Other enhancements slated for the upcoming autumn include a referral program offering cash rewards and improved security features such as permissioned keys for user wallets, providing better control and protection.