The blockchain and cryptocurrency sector is in constant evolution. Recently, decentralized finance (DeFi) platform dYdX presented version 4 of its project. Now, dYdX unveils the next step in its roadmap with the release of its full protocol as open-source.
dYdX Announces Open-Sourcing Its Protocol
2023 is certainly a busy year for dYdX. First, the company confirmed its transition from Ethereum to the Cosmos ecosystem in order to leverage Tendermint technology, while simultaneously emphasizing the importance of total decentralization in the development of its new version.
The open-sourcing of the protocol once again aligns with dYdX’s commitment to decentralization. However, this transition carries risks and users of the platform must fully comprehend its implications.
dYdX has announced that it is making its code, including the frontend, open-source. The company simply wants third parties to be able to freely utilize its infrastructure.
Consequently, anyone will be able to deploy a dYdX interface. As a result, the company aims to warn users about potential threats. Malicious actors could attempt to copy the dYdX interface in order to steal users’ funds.
To mitigate these risks, dYdX advises traders to perform due diligence on the validators they use and to verify the frontends used by these validators. The company also plans to highlight projects they consider trustworthy on their social media platforms and blog.
Additionally, for more advanced users, dYdX recommends deploying their own frontend to safeguard against hackers. However, this solution may not be suitable for the majority of protocol users.
In any case, dYdX affirms its commitment to promoting the decentralization of the decentralized finance ecosystem in order to create the best possible user experience. This initiative is commendable, as ease of use will be crucial for the sector’s mainstream adoption.
