dYdX Chain Enters Beta Mainnet, Partners with Circle for USDC Cross-Chain Transfers

dYdX Chain, based on the Cosmos SDK and affiliated with the dYdX DEX, has transitioned to its beta mainnet phase as of the evening of November 14th (Vietnam time), marking its first live trading following nearly a month of alpha phase stress-testing.

According to the dYdX Operations subDAO, 99% of the votes were in favor of deploying the beta mainnet at this stage.

Users can now participate in trading across over 33 derivative markets via the dydx.trade platform, offering leverage up to 20x. The project currently does not provide trading rewards but allocates transaction fees to validators and stakers, as previously reported by Coin68.

While the alpha mainnet phase tested network resilience, the beta phase acts as a transaction testing environment for dYdX Chain, the subDAO noted.

The alpha mainnet was the initial phase of the v4 upgrade, moving the dYdX DEX away from Ethereum onto its own layer-1 blockchain and transitioning DYDX into the token of dYdX Chain. This transition has been conducted across multiple testnets this year. The dYdX development team recently announced the full open-sourcing of the v4 upgrade for community review and feedback.

Initially built on StarkEx, an Ethereum layer-2 scaling solution, dYdX has become the largest decentralized derivatives trading platform in crypto, accumulating over $1 trillion in trading volume since 2020.

dYdX Collaborates with Circle to Enhance USDC Liquidity

Simultaneous with its beta mainnet launch, dYdX also announced a partnership with Circle and the Noble team to bolster USDC liquidity across different blockchains via Cross Chain Transfer Protocol (CCTP).

This functionality, facilitated through Circle's CCTP, will soon be implemented on the Noble mainnet, another blockchain within the Cosmos ecosystem.

Users can now easily convert USDC between dYdX Chain and other blockchains. According to dYdX, USDC on Noble and the upcoming CCTP launch will provide substantial benefits to dYdX Chain's v4.

CCTP operates on a mint-burn mechanism, burning the original USDC on the source chain and minting an equivalent stablecoin on the destination chain through a smart contract. In simpler terms, when users need to transfer USDC from chain A to chain B, Circle approves the transaction, burns the original USDC on A, and issues an equivalent stablecoin on B. CCTP helps mitigate risks like token minting attacks and enhances asset liquidity during transfers. The solution was deployed on Noble's testnet on November 3rd and is expected to go live on its mainnet on November 28th.

Following these positive developments, the price of DYDX has surged significantly. Over a 24-hour period, the DEX token has seen a 30% increase, trading around $3.8 USD, with upward momentum showing no signs of stopping.

1-hour chart of DYDX/USDT pair on Binance at 09:00 AM on November 15th, 2023