dYdX has been a pioneer in adopting next generation blockchain architectures to support traders. We adopted Starkware’s rollup technology before L2s were in vogue, and with dYdX v4, our open-source code (“dYdX Chain”), we 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.
A necessity for the success of the app-chain approach is highly flexible, fast, and easy to use interoperability. The dYdX Chain will integrate users from roll ups, Ethereum L1, other app-chains, and centralized exchanges in order to serve as many users and builders as possible. This is where Squid and Axelar come in - an interoperability solution built for this purpose: single click onboarding from any blockchain environment.
What is Squid?
Squid is a single click cross-chain transaction builder, supporting cross chain swaps in under 20 seconds. Squid utilizes Axelar’s decentralized interoperability infrastructure, approved by Uniswap’s bridge provider assessment. Squid provides interoperability services via an API, SDK and front end developer tools to teams across 60+ chains, and has done over $200 million in volume since its launch in January 2023.
The Integration
dYdX v4’s open-source code integrates with Squid’s API to support single click onboarding and offboarding to a dYdX app-chain from any of Squid’s supported EVM chains or rollups. Users will be able to deposit into a dYdX Chain account from within a dYdX Chain front end in one click, powered by Squid.
How It Works
Goal: Deposit or withdraw to / from a dYdX Chain address.
User wants to get USDC on dYdX Chain, they have USDC on Ethereum L1.
Route: USDC is sent to Osmosis via Axelar General Message Passing (GMP), then swapped to Noble USDC on Osmosis, bridged from Noble USDC to dYdX Chain from Osmosis via the Noble chain. All in one click.
User wants to get USDC on dYdX Chain, they have ETH on Arbitrum.
Route: ETH is swapped into axlUSDC on Kyberswap, axlUSDC is sent to Osmosis via Axelar GMP, axlUSDC swapped for Noble USDC on Osmosis, then bridged to dYdX Chain from Osmosis via the Noble chain. All in one click.
Interested in learning more about this integration? Check out this blog post from Axelar for more information.
Legitimacy and Disclaimer
Crypto-assets can be highly volatile and trading crypto-assets involves risk of loss, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be adequate for retail investors. Do your own research and due diligence before engaging in any activity involving crypto-assets.
dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to U.S. persons as well as in other restricted jurisdictions. The dYdX Foundation does not operate or participate in the operation of any component of the dYdX Chain’s infrastructure.
The dYdX Foundation’s purpose is to support the current implementation and any future implementations of the dYdX protocol and to foster community-driven growth in the dYdX ecosystem.
The dYdX Chain software is open-source software to be used or implemented by any party in accordance with the applicable license. At no time should the dYdX Chain and/or its software or related components be deemed to be a product or service provided or made available in any way by the dYdX Foundation. Interactions with the dYdX Chain software or any implementation thereof are permissionless and disintermediated, subject to the terms of the applicable licenses and code. Users who interact with the dYdX Chain software (or any implementations thereof) will not be interacting with the dYdX Foundation in any way whatsoever. The dYdX Foundation does not make any representations, warranties or covenants in connection with the dYdX Chain software (or any implementations and/or components thereof), including (without limitation) with regard to their technical properties or performance, as well as their actual or potential usefulness or suitability for any particular purpose, and users agree to rely on the dYdX Chain software (or any implementations and/or components thereof) “AS IS, WHERE IS”.
Nothing in this post should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act by anyone. Users should conduct their own research and due diligence before making any decisions. The dYdX Foundation may alter or update any information in this post in the future at its sole discretion and assumes no obligation to publicly disclose any such change. This post is solely based on the information available to the dYdX Foundation at the time it was published and should only be read and taken into consideration at the time it was published and on the basis of the circumstances that surrounded it. The dYdX Foundation makes no guarantees of future performance and is under no obligation to undertake any of the activities contemplated herein.
