The dYdX Chain blockchain is now supported by Squid, a project focused on the interoperability of the blockchain ecosystem.
dYdX developers have chosen the path of building an independent blockchain to drive the development of the next generation of financial applications on the chain and to ensure users have access to more efficient, stable and secure open products and services.
As part of this path, dYdX developers are building dYdX Chain, a new permissionless, open-source blockchain based on the Cosmos SDK and utilizing the Proof of Stake protocol.
Through this blockchain, dYdX hopes to become a completely decentralized and more efficient protocol.
However, while the primary motivation for building dYdX Chain is decentralization, the protocol also wants to ensure interoperability, to make it easier for users to participate in a unified blockchain ecosystem that can guarantee constant uptime and mitigate the risks of manipulation.
Squid supports the construction of dYdX Chain with this goal in mind.
Decentralization, interoperability and security, dYdX's motivations for building dYdX Chain
Squid is a cross-chain transaction generation protocol that connects networks compatible with the Ethereum Virtual Machine (EVM) and Cosmos SDK, and therefore, smart contracts and decentralized applications developed on these blockchains.
This protocol was recently integrated into dYdX Chain to provide the new network with Axelar's decentralized interoperability infrastructure and allow the incorporation of the chain and the DYDX token into any blockchain environment, dYdX developers explained in a publication on the blog.
At X, dYdX developers highlighted that Squid users “can now integrate with dYdX Chain from Ethereum, supported L2 or application chains” without the need to use a blockchain bridge.
For their part, Squid developers emphasized that through their infrastructure, users can easily access any blockchain or token, and that the same applies to dYdX Chain. “Users can obtain USDC on dYdX and deposit funds seamlessly from any Squid-compatible network,” they explained on the social network.
At the time of writing, the price of DYDX is above $2 per unit, registering an increase of 2,8% daily and 5,3% weekly.
Earlier this month, the crypto community governing the dYdX protocol voted to make DYDX the main native token of the dYdX Chain blockchain, thus DYDX will also become a utility asset, allowing validators on dYdX Chain to participate in consensus and secure the new blockchain.
The launch of dYdX Chain is expected later this month.
Continue reading: DYDX will become the main token of dYdX Chain
