Decentralized Finance (DeFi) protocol dYdX has announced a major upgrade coming to its Chain. The launch is scheduled for later this autumn and will bring a suite of new features to the protocol.
The features, including Permissionless Market Listing, MegaVault, Permissioned Keys, and many others, are “never before seen on any decentralized or centralized exchange”, as per dYdX. This milestone could drive increased adoption of its system. With the permissionless market listing, users are guaranteed access to instantly list any market on the dYdX Chain and will not require any governance approval.
Users must go on the dYdX platform and choose to launch a new market from a list of virtually unlimited markets, including cryptocurrencies and prediction markets. Significantly, dYdX hinted at these features when it released its 2024 roadmap at the beginning of this year.
At the time, the team also highlighted plans to introduce software allowing the fast deployment of perpetual markets for any asset so long as an oracle can provide price data. It outlined the shortcomings of the market listing requirements.
“Currently, all new market listings must go through governance, which can take days or weeks to complete end to end, and require participation by many different parties,” dYdX said.
The changes coming to dYdX might boost its relevance in the industry once completed. It may also place an upward pressure on the price of its native token. At the time of writing, it is changing hands for $1.0811, up 2.77% on the upgrade announcement.
dYdX MegaVault Provides Market Liquidity
Noteworthy, users would need to deposit the United States dollar-pegged stablecoin USDC in MegaVault to launch a new market. The particular amount of USDC is determined by governance. Once MegaVault receives the funds, it automatically quotes orders on the market. This ensures instant liquidity for all new markets, and this is MegaVault’s core responsibility.
It is worth noting that MegaVault caters to all markets, including brand-new ones. Its functionality as a market maker is one of the most critical factors for the success of the dYdX Chain. The liquidity comes from users who transfer their deposits to MegaVault. In the long run, these users get to participate in MegaVault’s P&L and receive a share of protocol revenue.
The dYdX team noted that they are working on providing users with permissioned keys. This feature is aimed at helping users enhance the security and control of their wallets. With the permissioned keys, only authorized participants can initiate actions like deposits and withdrawals on a wallet. The goal is to create a more secure and customizable environment for institutional and high-value traders.
“Our mission at dYdX is to democratize access to financial opportunity by building a best in class product experience for DeFi,” dYdX said.
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