\n
![](\"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=840\/https:\/\/s3.cointelegraph.com\/uploads\/2023-07\/1fa9abea-75ca-4302-b505-7b3710f06abc.jpg\")
<\/p>\n
\n<\/p>\n
Crypto exchange dYdX has launched<\/a> a public testnet of its \u201cv4\u201d iteration, according to a July 5 announcement from the exchange\u2019s development team. This marks the completion of \u201cmilestone 4\u201d out of five, paving the way for a future v4 mainnet launch.<\/p>\n Once implemented on mainnet, v4 is expected to allow for \u201cfull decentralization\u201d<\/a> of the exchange.<\/p>\n v4 Testnet is officially live https:\/\/t.co\/TD5caN6VSQ<\/a><\/p>\n Here are all the links you may need for easy access!<\/p>\n Public Testnet: https:\/\/t.co\/BZ57SvuXNv<\/a> Feedback and Block Explorer links<\/p>\n \u2014 dYdX (@dYdX) July 5, 2023<\/a><\/p><\/blockquote>\n The dYdX exchange is built on the Ethereum and StarkEx networks. Because it does not take custody of users\u2019 funds, it is generally considered to be a decentralized exchange (DEX). However, it does feature a centralized order book and matching engine that allows market makers to place limit orders. This contrasts with automated market maker DEXs like Uniswap that employ on-chain pricing algorithms to match buyers and sellers.<\/p>\n Version four of dYdX will eliminate this centralized order book and matching engine, making the exchange fully decentralized but without relying on an automated market maker. According to the protocol\u2019s documentation, it will do this by running parts of the app on a separate dYdX network with its own validators, allowing the order book to be stored on-chain.<\/p>\n Related: <\/strong>GMX and dYdX go head-to-head for the top decentralized derivatives position<\/strong><\/a><\/em><\/p>\n According to the announcement, users can request testnet funds to try out the app as of 5:00 pm UTC on July 5, allowing them to place virtual trades, view profit and loss, and perform other basic functions of the exchange. The ability to test bridging from one network to another has not yet been implemented but will come \u201cover the course of the public testnet.\u201d<\/p>\n Once the testnet phase is completed, the protocol\u2019s team plans<\/a> to implement the fifth milestone of the roadmap, which will integrate stablecoins into dYdX and will add support for Cosmos Inter-Blockchain Communication so that Cosmos users will have access to the app. Version four is expected to launch after this final milestone is completed.<\/p>\n The dYdX exchange announced in April that it would wind down its services<\/a> in Canada due to regulatory issues. In September 2022, it offered a $25 bonus to new users if they proved they weren\u2019t bots, causing some pushback<\/a> from privacy advocates. The promotion was later abandoned.<\/p>\n<\/div>\n\n
Testnet Status Page: https:\/\/t.co\/7vkrGZs9fx<\/a>
v4 Documentation: https:\/\/t.co\/tKTUWacKld<\/a><\/p>\n