In a bold stance against the nefarious practice of Maximal Extractable Value (MEV), the pioneering decentralized perpetual exchange, dYdX, is stepping up its game as it prepares to migrate to a Cosmos-based appchain.
On August 21st, the dYdX Foundation unveiled a comprehensive list of preferred practices tailored for dYdX Chain validators and stakers. The paramount goal? To ensure an equitable and transparent trading environment for users by staunchly rejecting MEV activities that could potentially undermine or disadvantage participants within the ecosystem.
The manifesto lays down the gauntlet, asserting that validators caught in the web of malicious MEV activities will face punitive measures. Beyond this, it promotes a slew of social strategies aimed at discouraging the extraction of MEV as a whole. In a striking move, the foundation also warns that delegates who lend their support to validators engaging in exploitative MEV practices may also find themselves facing repercussions.
The dYdX team firmly believes that forging a consensus on these ethical practices is pivotal in guiding responsible participation and decision-making within the dynamic dYdX Chain ecosystem.
For those unacquainted, MEV encapsulates intricate arbitrage techniques deployed by validators to siphon profits by manipulating the order of transactions executed by regular Web3 users. A pertinent example comes from Flashbots, an MEV research group, which estimates that Ethereum users lost a staggering $450 million to MEV since The Merge in September of last year, with an additional $640 million in the two years preceding it.
Fueling this commitment to ethical trading practices is the recent surge in dYdX’s DYDX token, which boasts an impressive 10% surge in the past 24 hours alone.
This dedication to integrity arrives just as dYdX is gearing up to bid adieu to the Ethereum ecosystem, embracing a dedicated appchain rooted in Cosmos for its eagerly anticipated v4 iteration. A pivotal step in this direction was the launch of the second public testnet for dYdX Chain on August 10th. This testnet introduced over 30 markets, distributed testnet tokens to incentivize user participation, and incorporated significant backend enhancements. This followed the sunset of the first testnet on August 7th, culminating a month of productive operations.
Standing head and shoulders above the competition, dYdX holds a firm grip on the perpetual DEX market. As per Token Terminal, the exchange facilitated trades worth $437.3 million on August 21st. This remarkable achievement far outshines its nearest two competitors combined, with Kwenta recording $128.6 million in daily volume and GMX securing the third spot with $77.7 million.
As the crypto landscape continues to evolve, dYdX’s unwavering commitment to fair trading practices and its transition to a Cosmos-based appchain signal a future driven by ethical conduct and groundbreaking innovation
Source: https://bitcoinworld.co.in/dydx-empowers-fair-trading-takes-on-mev-menace-ahead-of-cosmos-based-migration/