Decentralized finance (DeFi) organization dYdX Foundation, an independent nonprofit founded to support the dYdX protocol, recently launched a public testnet for its latest version, v4. According to the foundation, this puts them ahead of schedule for the impending launch of the v4 mainnet, something they claim represents complete decentralization for dYdX.
As Cointelegraph recently reported, the July 5 testnet launch represented the fourth of five milestones dYdX Foundation laid out in a roadmap towards decentralization last year.
In its current live version, dYdX is still considered partially centalized. While it doesn’t actually take custody of any user assets, it still uses a centralized book order and matching system. The newest version, once fully-launched, is purported to solve this issue.
Currently, dYdX moves a little more than $1 billion in funds daily and is considered the world’s largest decentralized exchange for perpetuals — bonds with no maturity date.
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In an interview with Cointelegraph at the EthCC conference in Paris, France, dYdX Foundation CEO Charles d’Haussy discussed the move towards total decentralization and what that would mean for centralized providers of perpetuals.
“They are not the competitors of the dYdX protocol, honestly,” said d’Haussy, adding “I think they do their job well, they have been supporting the market early on. We should not forget that perpetuals were invented by BitMex which is a centralized entity.”
The CEO described the current state of the industry as transitional, saying it was headed towards “decentralized disruption.”
However, he was quick to point out that this didn’t necessarily put centralized organizations in competition with DeFi. In his view, there’s room not only for both sides to co-exist, but opportunities for collaboration that could benefit crypto customers in general.
He added that, whether in the coming months or the next few years, he expects centralized exchanges to serve as gateways to decentralized exchanges.
“I can definitely imagine a world where maybe a centralized entity with KYC (know-your-customer) and risk profiles on customers […] Will offer spots trading in-house. Maybe they will offer their customers a better experience [compared] to DeFi, with a more simple integration and connecting from the centralized exchange to DeFi.”
The CEO explained that the proposed situation wouldn’t…
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