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Vandana Malik
Aug 20, 2020
by Vandana Malik

dYdX Joins Hand With StarkWare to Provide Layer 2 Solutions

dYdX
dYdX, a decentralized margin exchange, has recently formed a partnership with StarkWare, a blockchain firm. If the partnership is successful, layer 2 solutions will be provided to the traders that will work towards reducing the trading fees and increasing the leverage possibilities. It is believed that with the Layer 2 solutions, the trades will become more instant, just like Binance and Coinbase.

dYdX aims to provide the best experience to traders

Through this partnership, dYdX is aiming to give the best user experience to all the traders. Layer 2 solutions will provide the lower gas cost, trading fees, and along with this, there will be a minimum trade size. The main aim of the firm is to develop secure, powerful, and open financial products. 

StalkWare will be working towards developing software to improve the blockchain scalability. This will be made possible by allowing the computation to move off-chain via Ethereum blockchain. Now with this partnership, StarkWare will be using its STARK proofs for data integrity. This will ensure to provide a non-custodial protocol to the traders. The traders will be able to use different perpetual contracts using a single account. dYdX will be implementing its plan to provide a new solution by the end of this year.

Ethereum blockchain for off-chain transactions verification 

The layer 2 solutions that dYdX will be providing to its traders will be powered by Ethereum blockchain. This will help them to do verification of off-chain transactions and ultimately reduce the cost and gas fees. It is revealed that StarkWare has been using the technology since 2018. The firm has been working towards solving both scalability and privacy. 

The firm is expecting that cross margining, and better scalability will be working towards launching more trading pairs on dYdX. As believed by the firm, if this partnership becomes successful, then it is going to be great for traders and both the firms.

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    dYdX Joins Hand With StarkWare to Provide Layer 2 Solutions
    Vandana Malik
    Vandana has received Master of Arts degree in English from GEU Dehradun. She is currently working as a content writer with Agio Support Solutions and earlier worked as a sub-news editor at Business News and Information Services Private Limited. She is an enthusiastic content writer and aims to bring a compelling yet informative content to the audience. Meanwhile, enhancing her own knowledge in the cryptocurrency and blockchain industry.