dYdX Chain v4.0 Release

Overview

dYdX Trading is excited to share that v4.0 of our v4 open source software (”dYdX Chain”) has been released! The release includes various feature, risk, governance, and performance upgrades to the protocol.

For more information, head to the release notes.

Reduce Only

Reduce-only orders are beginning to be supported on dYdX Chain. Reduce-only will only be available for fill-or-kill and immediate-or-cancel short term orders, as well as fill-or-kill and immediate-or-cancel conditional orders.

On the front end, this translates to any market orders, limit fill-or-kill and immediate-or-cancel orders, stop market orders, take profit market orders, as well as stop limit and take profit limit fill-or-kill and immediate-or-cancel orders.

IBC Withdrawal Rate Limiting

dYdX Chain withdrawal rate limits have been created which gate the amount of tokens that can be IBC’d out of dYdX Chain in emergency situations.

The default software rate limits net-withdrawal of Noble USDC, at below levels:

max(1% of TVL, $1mm) per hour

AND

max(10% of TVL, $10mm) per day

*These rate limit parameters can be updated by governance.

Subaccount Withdrawal Gating

dYdX Chain has created subaccount withdrawal gating for specific circumstances. All subaccount transfers and withdrawals will be gated for 50 blocks if a negative collateralized subaccount is seen in state and/or can't be liquidated or deleveraged. All subaccount transfers and withdrawals will also be gated for 50 blocks if a 5+ minute chain outage occurs.

Governance Enabled Slashing

A new module, x/govplus, has been created which enables any applicable layer 1 token holders to slash validators and their stakers. This was built to ensure any applicable layer 1 token holders have the appropriate powers and tools to punish any validator who may be violating socially agreed upon rules, such as MEV.

Authz

x/authz is a Cosmos module that has now been enabled on dYdX Chain. The x/authz module defines interfaces and messages which grant authorizations to perform actions on behalf of one account to other accounts.

The module can be used in a variety of ways which include but are not limited to enabling delegation of voting rights to other accounts such as hot wallets, and enabling new use cases for auto compounding staking rewards.

For more information on x/authz, head to the Cosmos SDK documentation.

Cosmos 0.50.3 Upgrade

The Cosmos SDK has been upgraded to v0.50.3 allowing features such as optimistic execution and vote extensions to be enabled in future protocol releases. See the Cosmos SDK 0.50.0 release announcement and release notes for additional details.

With the introduction of Cosmos 0.50.3, the governance module introduces the concept of expedited proposals. A proposal can be expedited, making the proposal use shorter voting duration and a higher tally threshold by its default. If an expedited proposal fails to meet the threshold within the scope of shorter voting duration, the expedited proposal is then converted to a regular proposal and restarts voting under regular voting conditions.

dYdX Trading recommends the following parameters for any network utilizing its open source software:

Expedited voting period: 1 day
Expedited threshold: 0.75
Expedited minimum deposit: Equivalent to the network’s Minimum Deposit for a regular proposal

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.