The Rise of dYdX: Coinbase Adds Support for Cosmos-Based DeFi Altcoin
The leading US-based cryptocurrency exchange, Coinbase, has recently announced the addition of support for a Cosmos (ATOM)-based decentralized finance (DeFi) altcoin. This move signifies a significant step towards expanding the platform’s offerings in the rapidly growing DeFi space.
According to a recent post on Coinbase’s official social media account, the exchange is now supporting the fourth iteration of dYdX (COSMOSDYDX), a DeFi platform that is built on the Cosmos blockchain. dYdX is primarily focused on crypto derivatives and perpetuals, offering users a wide range of financial products and services.
In the announcement, Coinbase stated, “dYdX is now live on Coinbase.com and in the Coinbase iOS and Android apps. Coinbase customers can log in to buy, sell, convert, send, receive, or store these assets.” This integration allows users to seamlessly access and trade COSMOSDYDX tokens on the Coinbase platform.
Following the news of Coinbase’s support for COSMOSDYDX, the altcoin experienced a surge in price, jumping from a daily low of $0.59 to a peak of $0.63 within a day. The token is currently trading at $0.62, reflecting a 3.7% increase from the previous day’s trading price.
The developers of dYdX highlighted in their whitepaper that the project initially began on the Ethereum blockchain in 2017 but later transitioned to ATOM due to its superior customizability options for derivatives contracts. The dYdX Chain, built on Cosmos SDK and secured via CometBFT, offers full control over infrastructure, from consensus to governance logic to validator incentives.
The Cosmos SDK provides a modular framework for building application-specific blockchains, allowing teams to define a blockchain from scratch with customizable modules and upgradeable protocol logic. This approach sets dYdX apart as a sovereign layer-1 blockchain, independent of any base layer like Ethereum.
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