Feature for Communities- Instant Deposit to dYdX
tldr-
- dYdX is the leading perpetual trading protocol;
- dYdX v4 runs on its own blockchain which requires asset bridging before you can trade on it;
- bridging asset to dYdX is a hassle to many users in the community;
- MES will support dYdX to enable instant asset deposit/ withdrawal to/from dYdX
Introduction to dYdX
dYdX stands as a leading perpetual trading protocol in the decentralized finance (DeFi) space. It offers over 60 trading pairs, with leverage up to 20x; it offers CEX-like trading experience in a decentralized way.
Evolution to dYdX Chain in v4
With the launch of v4, dYdX has transitioned to its own blockchain, built on the Cosmos SDK. This move represents a significant leap towards full decentralization, offering a scalable, off-chain orderbook and matching engine.
Challenges with Bridging to dYdX Chain
Despite the advancements, users have faced challenges in bridging assets to the dYdX Chain. Issues with user experience and security have been notable obstacles, hindering the seamless transfer of assets across blockchains; and most importantly it set a high barrier for financial inclusion.
The community frequently inquires about bridging assets to and from the dYdX chain, facing two major concerns:
- Long wait time — Depositing USDC into dYdX requires a minimum of 30 minutes. There have been reports of funds being delayed for up to 5 hours at the Axelar bridge; and
- One-way DYDX bridge — The transfer of DYDX tokens is limited to a single direction, from the Ethereum blockchain to the dYdX chain. To move DYDX tokens from the dYdX chain to other blockchains, one must utilize a centralized exchange (CEX) as an intermediary.
What MES could help?
MES Protocol is a cross-chain bridge that offers instant asset bridging across chains. We plan to utilize our application’s design to offer dYdX users a swift and decentralized bridging service.
Once the dYdX chain integration is complete, users will be able to directly deposit assets to dYdX using the MES Protocol, with transactions settling in approximately 1–2 minutes — a significant improvement over existing methods.
This initiative marks our initial step towards enabling seamless asset transfers across the dYdX chain. In the future, we aim to also facilitate the withdrawal of assets from dYdX to other blockchains.
Our development team is actively working on this new feature, which we anticipate launching in the upcoming weeks. Stay tuned!
-
MES Protocol
Multichain Exchange Solution.
Website: https://mesprotocol.com
Discord: https://discord.gg/bFMyrvjkrm
Twitter: https://www.twitter.com/mesprotocol
Medium: https://medium.com/@mesprotocol
Telegram: https://t.me/mesprotocol
Youtube: https://www.youtube.com/@mes_protocol
