dY dX Exchange has implemented a second-tier Star Wars solution for perpetual contracts

dY dX Exchange has implemented a second-tier Star Wars solution for perpetual contracts

The decentralized derivatives exchange dYdX has launched perpetual contracts for cryptocurrencies using StarkWare’s second-tier solution to reduce fees and increase trading speed.

According to a statement on the dYdX blog, perpetual cross-margin cryptocurrency contracts were launched using StarkWare’s second-tier Ethereum network solution for all platform traders.

“To significantly scale trading, dYdX and StarkWare have created a second-level protocol for perpetual contracts, based on StarkWare’s StarkEx scaling mechanism and dYdX Perpetual smart contracts. Traders can now trade with zero gas costs, lower trading fees, and reduced minimum transaction sizes.”

Previously, perpetual contracts using StarkWare were available in the closed alpha version of the solution with limited deposits, which was launched in February. dYdX states:

“With the transition to our second-level protocol, we have created a completely new product and trading system for perpetual contracts with cross-margin from scratch. The product features a new improved user interface, instant trading, and all the advanced features that traders expect from perpetual trading.”

The decentralized exchange dYdX announced a partnership with StarkWire in August last year. Then the developers of the exchange said that support for the second-level scaling technology StarkEx will be added to the platform.

StarkWare uses zero-knowledge roll-up technology (ZK Rollups) in its solution, which, like Optimism’s Optimistic Rollups, is being developed to solve some of the scaling problems of Ethereum.

Both technologies have their pros and cons. dYdX said it chose ZK Rollups because the StarkWare solution was already entering the production phase when the exchange first partnered with the startup.

DeversiFi’s decentralized exchange also uses the StarkWare solution. The DeFi Synthetix app uses Optimism rollups. Uniswap is also considering integration with the second-tier Optimism solution