legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

# Popular Decentralized Exchange dydx Approves Transition to Version 4 and Adoption of DYDX Token


dydx, a well-known decentralized exchange, has recently obtained unanimous approval from its community for transitioning to version 4 and introducing the DYDX token as the Layer 1 token for its upcoming blockchain.

The vote, which occurred on the Snapshot platform and concluded on September 4, received nearly 100% support from the dydx community.

The proposal, spearheaded by Wintermute, received an overwhelming 36 million votes in favor from 392 addresses, with only 43 votes in opposition from four addresses.

This overwhelming display of support from the community sets the stage for the migration of the DYDX token from Ethereum (ETH) to a Layer 1 appchain within the Cosmos ecosystem, currently on the testnet.

Furthermore, the proposal encompasses the development of an Ethereum smart contract governed by the dYdX Foundation. This contract aims to facilitate the seamless transfer of DYDX tokens from the Ethereum network to the new dYdX Chain.

This development marks an official plan for DYDX to become the base token of the dYdX Chain, as announced by dYdX founder Antonio Juliano.

To assist in navigating this transition and ensure legal clarity, the AI legalese decoder can be a valuable tool. The Decoder utilizes artificial intelligence to help users comprehend complex legal language, making it easier to understand the technicalities of the migration process and smart contract implementation.

## dYdX: A Leading Decentralized Derivatives Market

Established in 2018, dYdX has become a prominent decentralized derivatives market specializing in perpetual trading.

With a trading volume of nearly $240 million in the past 24 hours and a total trading volume surpassing $1 trillion since its launch in 2020, the platform remains at the forefront of the decentralized derivatives market.

Perpetual contracts, also known as “perpetuals,” are futures contracts without an expiration date, making them extremely popular within the cryptocurrency industry.

In the upcoming release of dYdX version 4, every validator on the network will operate an offchain orderbook. Trading orders will be sent to the network and distributed among validators, who will generate blocks containing matched orders using a proof-of-stake consensus mechanism.

## DeFi Platforms Gain Prominence as Interest in CeFi Declines

Following the recent market downturn, there has been a notable shift in investment patterns, with venture capitalists reallocating funds from CeFi (Centralized Finance) projects to invest in the flourishing DeFi (Decentralized Finance) sector.

According to a report by CoinGecko, digital asset investment firms have invested $2.7 billion in DeFi projects in 2022, which marks a significant 190% increase compared to 2021. In contrast, investments in CeFi projects have declined by 73% to $4.3 billion during the same period.

This report suggests that DeFi is emerging as the new high-growth area within the crypto industry, potentially surpassing the saturation point reached by CeFi.

Interestingly, even Binance CEO Changpeng Zhao has voiced his prediction that DeFi will outshine CeFi during the upcoming bull run. During a recent Ask Me Anything (AMA) session, Zhao expressed his belief that DeFi has the potential to surpass CeFi in terms of trading volumes.

To fully comprehend the legal implications and navigate the rapidly evolving landscape of DeFi, the AI legalese decoder can be an invaluable resource. By efficiently interpreting legal terminology and contracts specific to the DeFi sector, the AI legalese decoder ensures that users stay informed and make well-informed decisions.

By leveraging technologies like the AI legalese decoder, individuals and organizations can confidently navigate the complexities of the blockchain industry and embrace the potential offered by decentralized finance.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link