dYdX Exchange and StarkWare Partner to Bring Layer 2 Scaling to Decentralized Trading
Decentralized exchange platform, dYdX has announced it has partnered with StarkWare to integrate Layer 2 scaling for use with perpetual contracts. The Layer 2 scaling solution will be built on StarkWare’s StarkEX scalability network as well as dYdX perpetual smart contracts. The press statement reads,
“Our engineering teams are collaborating on a Layer 2 scaling solution for Perpetual Contracts, based on StarkWare’s StarkEx scalability engine and dYdX’s Perpetual smart contracts. Our Perpetual Contracts will be powered by StarkEx by the end of this year.”
dYdX explained that transitioning to Layer 2 will help provide enhanced user experiences for its clients. The firm also stated that its clients can now look forward for reduced gas costs which will translate to lower trading fees as well as minimum trade sizes as the trades will passed on-chain in ZK-rollups which will decrease the gas amount needed in every trade.
They are also looking forward to reducing minimum trade sizes as there will be less fees for each trade allowing clients to enjoy smaller trade sizes which means that dYdX users can start trading using less capital. They also stated that clients can expect more trading pairs on dYdX as well as instant trade settlement.
StarkWare’s scaling tech is also been used by DiversiFi, a decentralized exchange as well. However, the use of the tech by dYdX will bring a main DEX into the fold, a move that is likely to open doors for various decentralized exchanges around the world.
dYdX has been experiencing positive growth from April after the platform introduced Bitcoin perpetual swaps. Last month, dYdX recorded its busiest month with over $2555 million worth of trading volume.
dYdX stated that it is expecting to launch the platform before the end of the year. However, clients are free to trade ETH-USD as well as BTC-USD perpetual contracts and enjoy up to 10x leverage.