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New York, USA, September 20th, 2023, Chainwire
As dYdX is adopting a standalone app-chain model, a pioneering interoperability solution enables 1-click onboarding from any blockchain environment
Decentralized financial derivatives marketplace dYdX has implemented a solution built on cross-chain infrastructure provided by Axelar, the leading Web3 interoperability platform, to support single-click onboarding and offboarding to dYdX v4.
The implementation will utilize Squid, a single-click cross-chain transaction builder that supports cross-chain swaps in under 20 seconds, built on Axelar's decentralized interoperability infrastructure.
Long a pioneer in adopting next-generation blockchain architectures to support specific product outcomes, dYdX adopted Starkware’s rollup technology before L2s were in vogue, and with dYdX V4 they are adopting a standalone app-chain model. Derivatives exchanges are by nature high-leverage and high-risk places of trade, and a maximally decentralized approach to the entire market structure is needed to ensure constant up-time and safety from manipulation.
In brief, dYdX has implemented Squid’s API to support single-click onboarding and offboarding to their app-chain from any of Squid’s supported chains or rollups. Users will also be able to deposit from other exchanges, i.e. centralized exchanges, to directly onboard onto dYdX’s chain. Users will be able to deposit into their dYdX account from within the dYdX front-end in one click, powered by Squid.
"A necessity for the success of the app-chain approach is highly flexible, fast and easy to use interoperability. The dYdX chain needs to onboard users from roll ups, Ethereum L1, other app-chains and centralized exchanges in order to serve as many users as possible," said Nathan Cha, dYdX marketing lead. "This is where Squid and Axelar come in - an interoperability solution built for this purpose: single-click onboarding from any blockchain environment."
"This approach has become a blueprint for many of Squid’s other integrations, as it provides a robust architecture for scaling applications in a multichain world," said Sergey Gorbunov, co-founder of Axelar. "Keep your complex, fragile logic in one tightly controlled environment, and utilize smart interoperability to onboard or offboard and sell your capabilities in other ecosystems."
Axelar is the full-stack interoperability layer for Web3. The network enables blockchain as a new kind of development platform, integrating diverse networks into a seamless “Internet of blockchains.” Axelar is programmable and decentralized, secured by a proof-of-stake token, AXL. Application users access any digital asset or application, with one click. Developers work with a simple API and access an ecosystem of tools and service providers.
More about Axelar: axelar.network.
dYdX is the developer of a leading decentralized exchange on a mission to build open, secure, and powerful financial products. dYdX currently runs on audited smart contracts on Ethereum, which eliminates the need to trust a central exchange while trading. We combine the security and transparency of a decentralized exchange, with the speed and usability of a centralized exchange. dydx.exchange
Squid is a secure cross-chain router that enables interoperability between blockchains and apps. Squid enables single-click cross-chain actions such as token swaps, purchases, deposits, and staking. These contract calls are easily integrated via its API, SDK, and front-end components. Developers can use Squid to onboard users from any blockchain and create scalable, seamless user experiences for anyone with a crypto wallet.
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