dYdX, the popular crypto derivatives exchange, has announced a grand plan to expand into its own Cosmos-based blockchain as part of the dYdX V4 update. This decision marks an expansion beyond the Ethereum ecosystem. Founded in 2018, dYdX is currently the largest decentralized derivatives exchange, with trading volume exceeding $600 million in the last 24 hours, according to CoinGecko data. The exchange is currently working on StarkEx, an Ethereum Layer 2 scaling network developed by Starkware.

dYdX Trading, the development team behind dYdX, announced in an announcement today its plans to build its own chain using the Cosmos SDK. This is a software development kit used by projects in the Cosmos (ATOM) ecosystem.

In the announcement, dYdX's new chain will help make the project more decentralized and controlled by a distributed set of validators rather than just the founding team. Antonio Juliano added that it is expected to launch in the coming months. Founder Antonio Juliano said:

   "Developing a decentralized, off-chain order book and matching engine and moving from Ethereum as a major DeFi protocol to a dYdX-specific chain may seem like a risky idea. But we believe this gives the dYdX ecosystem the best chance of having a network."

This step, dYdX's new chain, will serve the project's goal of "more decentralization" and help it be controlled by a distributed set of validators rather than just the founding team.

No decision has yet been made for the current version of dYdX on StarkEx. “We are still considering what will happen to the current V3 system built on Starkware,” the final statement said. The platform's native token of the same name has reached $1.54, up nearly 8% at the time of writing.

At the time of writing, dYdX is priced at $1.51 USD, with a 24-hour trading volume of $83,374,639 USD.