We are excited to announce Common Protocol’s integration with the dYdX Layer 2 Protocol. The dYdX Layer 2 Protocol is a decentralized exchange for trading perpetual contracts with low fees, deep liquidity, and up to 25X leverage. The exchange is used by more than 18,000 traders and has powered more than $3.2 billion in transactions and raised $65M in a Series C fundraise in June.
dYdX Trading recently launched the Layer 2 Protocol, built on StarkWare, in order to offer users a trading experience with zero gas costs. Particularly, with the recent surge in Ethereum gas costs, this allows for a scalable solution moving forward. StarkWare’s zero-knowledge roll-ups offer traders full privacy as they move funds between platforms. The dYdX Layer 2 Protocol also enables instant withdrawals to Ethereum Layer 1.
With the launch of the DYDX token, users can now control parts of the decentralized platform, participate in governance, and receive discounts on trading fees. The dYdX Foundation has chosen to utilize Common Protocol for managing its governance and community. "Common Protocol has built a full stack governance interface," said Yiran Tao from the dYdX Foundation, "which is great to bootstrap dYdX community building."
This strategic relationship marks a major push for Common Protocol into the realm of DeFi governance. dYdX is a leading decentralized exchange built on Layer 2 and we are excited to help empower community ownership of the dYdX Layer 2 Protocol. “The dYdX community is especially vibrant and is helping solve many of the major pain points in DeFi,” said Dillon Chen from Common Protocol. “We want to ensure their governance is as seamless as the exchange itself.”