dYdX Protocol v5.0.0: DeFi and crypto trading made simple

dYdX gets a makeover. It’s not that long ago that dYdX us announced v4 of its protocol. An important version of its development, which was characterized by its complete independence thanks to its own channel established on the Cosmos development kit and the BFT comm consensus mechanism.

With the arrival of its v5.0.0 upgrade, DEX introduces new features that promise to improve security, flexibility and performance for its users. We will explain everything to you!

Le Journal du Coin offers you this promotional article in collaboration with dYdX.

Governance votes yes to v5 by dYdX

Before we get to the heart of the matter, let’s note the massive support from Community of DEX. In a recent poll, 98.5% of participants supported the upgrade, with a participation rate of 90%. But what changes are announced for this update?

The dYdX v5.0.0 update introduces two important features regarding risk management in DeFi.

On the one hand, we have isolated markets. In the current configuration, all markets share a common security pool and a single insurance fund. However, this limits the number of available markets due to centralized risk management.

With isolated markets, each market has its own own guarantee pool and insurance fund, making it possible to support a wider range of markets with distinct risk characteristics. Finally and above all systemic damage from one ecosystem to another is limited.

On the other hand, and always with the purpose of allowing better risk management, nwe got them isolated margins. Isolated margin allows you to isolate the specific security of a position. Always with the aim of avoiding systemic risks.

Better crypto trading on DeFi

There version 5.0.0 of dYdX not only brings innovations in isolated markets and isolated margins. It also includes several other features that are being improved securityL’efficiency anduser experience. Among all the proposed new features, we want to remember:

  • Batch order cancellation : This feature allows users to cancel up to 100 short-term orders simultaneously, thereby optimizing trading efficiency. This is especially useful for active traders who frequently place and cancel orders.
  • The introduction of liquidity boxes (LP Vaults) introduced to neutralize the net exposure in each market. These boxes will deterministically adjust their pricing strategies to return to a neutral positioning, helping to stabilize the market.
  • Oracle Slinky integration :: Slinky, integrated via a voting extension, offers guaranteed price updates on every block with millisecond updated rates.
  • Simultaneous signature verification : This enhancement increases processing speed by allowing parallel verification of signatures. This means that more transactions can be verified simultaneously, improving overall network performance.

Technical, or even ergonomic, all these updates tend to optimize the user shopping experience as dYdX explains in his proposals for control.

While the price of Bitcoin and cryptocurrencies seems to wake up a bit, professionals in the ecosystem are fighting to offer optimized crypto trading solutions, and this v5 of dYdX does not seem to be an exception, with the center of its concerns. :its users’ trading experience.

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