San Francisco-based decentralized finance (DeFi) exchange platform, dYdX has announced the launch of a private testnet on Cosmos. According to reports, this move is part of the platform's plan to build its own blockchain network that will be used for trading activities.
The announcement has brought a positive impact on DYDX's price, as it experienced a 12% increase following the news. At press time, the token was trading at $22.38 and had recorded an impressive daily trading volume of over $500 million.
The firm revealed that they are expecting to launch their mainnet by September 2023. This move is expected to provide users with cheaper transaction fees and faster processing times compared to traditional centralized exchanges.
According to Antonio Juliano, CEO and founder of dYdX:
Cosmos is known for its interoperability solution that allows different blockchain networks like Ethereum and Bitcoin to interact with one another seamlessly. This feature will enable dYdX's new chain network to connect easily with other blockchains which will ultimately make it easier for users who want access across multiple DeFi platforms.
Although DeFi platforms still face regulatory challenges from various governments around the world, many investors believe that they hold vast potential in terms of creating financial opportunities for millions worldwide.
For now, it remains uncertain how far-reaching dYdX's plans are but with increased interest in DeFi protocols globally; only time will tell if this latest move proves successful or not.