dYdX Trading has announced the release of version 4.0 of its open-source software, known as the dYdX Chain. This significant update brings a host of new features and improvements across governance, risk management, and performance, according to dYdX.
The new version introduces support for ‘reduce-only’ orders, which are now available for fill-or-kill and immediate-or-cancel orders, as well as conditional orders. This enhancement allows for more precise trading strategies by limiting order execution to reducing positions only.
In terms of risk management, the dYdX Chain has implemented Inter-Blockchain Communication (IBC) withdrawal rate limits. These limits control the volume of tokens that can be withdrawn from the chain during emergencies, capped at 1% of Total Value Locked (TVL) or $1 million per hour, and 10% of TVL or $10 million per day. Governance can adjust these parameters as needed.
A new governance module, x/govplus, empowers layer 1 token holders to slash validators and stakers that violate agreed-upon rules, enhancing the network’s security. Additionally, the x/authz module from Cosmos has been activated, allowing users to delegate voting rights and perform actions on behalf of one account to another, broadening the scope for auto-compounding staking rewards.
The dYdX Chain has also undergone a technical upgrade to the Cosmos SDK version 0.50.3. This upgrade supports features like optimistic execution and vote extensions, which will be integrated into future protocol releases. The governance module now includes expedited proposals, enabling faster decision-making with a one-day voting period and a higher approval threshold.
The release of dYdX Chain v4.0 marks a pivotal step in enhancing the platform’s efficiency and security, reflecting its commitment to providing robust and innovative solutions in the blockchain space.
