Dymension: The Hub And Factory Of RollApps
The multi-layer L1 protocol paves the way for anyone to create and permissionlessly deploy their own blockchain
What is Dymension?
Made with vertical integration in mind, Dymension is a modular L1 sovereign protocol that is built to accommodate the deployment of high-performance blockchains called RollApps.
Dymension is essentially a hub that provides security, liquidity, and connectivity to the blockchains (or RollApps) built on top of it.
The RollApps, meanwhile, are L2 modular blockchains that have their own execution environments.
They are similar to Cosmos appchains but differ in that they live on the “Dymension Hub”.
TL;DR… Dymension is the Internet of RollApps.
Value Proposition
It’s no secret that dApps in the crypto ecosystem are in need of an overhaul vis-a-vis ease-of-use and economic sustainability. Rollups in general have proven to be a viable solution, as the business model boils down to a simple formula: fees — base layer costs = profit
The problem, however, is that rollups have no standardized framework, which has given users the fragmented, insecure, and chaotic experience that exists today.
Dymension solves these problems by creating an environment where RollApps are able to provide a rollup business model that includes speed and scale in a unified experience.
So what are RollApps and how do they work?
RollApps themselves are easy-to-deploy modular blockchains that natively integrate with the Dymension Hub.
They are application-specific aggregations/modular execution environments. One such RollApp during Dymension’s FroopyLand Testnet was Conan Hub which hosted a NFT marketplace, provided a Conan Extension Wallet, and even had its own $CON token.
In this way the RollApp hub allows anyone to create and deploy their own such blockchain.
One of the chief benefits here is that end-users of a RollApp can pay a fee in the native token of that project instead of using the token of the underlying chain. This RollApp autonomy means their native tokens can be used for fees or real value accrual.
Another thing worth bearing in mind as we dive deeper is that Dymension decouples the following layers:
- Execution layer: This processes txs
- Settlement layer: Involves dispute resolution, maintains state roots and serves as a bridge between environments
- Data availability layer: Ensures all data is made available once it’s published
Keeping this in mind you can see why, instead of bootstrapping an expensive validator set, RollApps simply leverage security from the Dymension Hub, and use Data Availability Networks (Celestia, Avail, Near) to publish their tx data.
Tech Stack
RollApp Development Kit (RDK)
Inspired by the Cosmos SDK, Dymension’s RDK caters to building application specific RollApps. The kit is a pre-packaged set of generic modules for common functionalities. Some of these include creating accounts and even token management. The RDK simplifies the process of deploying a RollApp on top of Dymension’s settlement layer.
Dymension Settlement Layer
Built using the Cosmos SDK the modular Layer 1 hub for RollApps uses the PoS consensus mechanism and is supported by the Tendermint consensus algorithm.
Given that Dymension has both a hub for RollApps (consensus) and a space for the L2 blockchains themselves (execution) the following breakdown will separate Dymension’s tech stack features into their appropriate operating environments.
→ Execution Layer:
RollApp Architecture
RollApps can be broken down into two core services, server and client.
Server: This is the application side and is where the RollApp deployer implements custom business logic.
Client: Also referred to “dymint”. This part produces blocks, propagates peer messages, and handles inter-layer communication.
A tx in the RollApp occurs when a request is sent to a RollApp Sequencer. This then processes the tx, batches it into a RollApp block, and publishes the batch and state roots to the data and settlement layers.
Fraud Proof Design
RollApps operate under an optimistic fraud proof design, supported by a dispute period to ensure a trust-minimized environment. The dispute period occurs in the Settlement Layer and allows other actors to verify the Sequencer has submitted valid state updates.
Should an update be fraudulent, a fraud proof is published by a permission-less actor that shows the valid state transition. This then results in a reversion to the previous state and slashing of the malicious Sequencer. The fraud proof generator is partially rewarded.
Sequencer Decentralization
RollApp txs on Dymension are processed by permissioned and permission-less sequencing. In this system leaders for sequencing are selected based on the amount of $DYM staked on the hub’s settlement layer. This system rewards sequencers through fees and MEV generated by their respective rollups.
→ Settlement Layer:
Enshrinement
This is what separates rollups such as Optimism and Arbitrum from those on Dymension. While Optimism and Arbitrum are connected to the Ethereum settlement layer via smart contract implementations that may be compromised with bugs or multi-sig issues… the logic for RollApps on Dymension are given same trust and security assumptions as the base layer and are natively maintained.
IRC (Inter-RollApp Communication)
This functions similarly to the Cosmos SDK IBC module and allows RollApps on Dymension to communicate and tx with each other on both the RDK and the settlement layer. The IRC also paves the way for RollApps to be able to communicate with other IBC-enabled chains via the Hub.
RollApp Virtual Machine
In order to settle tx disputes at the settlement layer… Dymension makes use of the RollApp Virtual Machine that has a introduced a novel approach.
When there is a tx dispute the RVM works by opening an emulation container within the settlement layer that replicates the RollApp’s execution environment. The RVM mimics the context of the disputed tx to produce a deterministic output that resolves the dispute and then discards the emulation container.
This method allows the RVM to emulate a variety of execution formats without permanently adding these to the native settlement layer.
Censorship Resistance
In order to ensure all txs on Dymension are secured from potential meddling, the Hub’s architecture allows users to publish a special tx to its settlement layer.
This tx is relayed to a Sequencer, which needs to execute it within a designated timeframe.
If the Sequencer fails to include this forced tx to Dymension’s state roots in the timeframe, the Sequencer gets penalized.
Embedded Hub AMM
Dymension has introduced an embedded Automated Market Maker (AMM) on its settlement hub to the benefit of its RollApps.
The AMM is meant to expose the L2 blockchains to efficient asset routing, better price discovery and shared liquidity for the entire ecosystem.
Tokenomics
Denoted as $DYM, the project has an initial issuance of 1 bil. tokens.
DYM tokens are issued as a result of a dynamic process based on the proportion of DYM tokens staked relative to the total supply.
- Below Target Staking: If the percentage of staked DYM is less than the target of 67%, the issuance rate will incrementally increase. This adjustment continues until it reaches the maximum rate of 10% or until the staking target is met.
- At Target Staking: When the staking ratio aligns with the 67% target, the current issuance rate remains unchanged.
- Above Target Staking: If the percentage of staked DYM is greater than the target of 67%, the issuance rate will incrementally decrease. This adjustment continues until it reaches the minimum rate of 1% or until the staking target is met.
Roadmap
Following its successful mainnet Dymension has passed its “Singularity” Phase, denoted by the production of its first block. The phase includes an initial focus on enhancing economic security and liquidity for its ecosystem. It also looks to establish major IBC and bridging connections, make the first governance proposals of the Dymension protocol.
From there Dymension plans to move through the following phases:
2D Permissioned RollApps:
This is where the first-ever mainnet IBC-rollup will be deployed to the Interchain after which Dymension governance will approve various RollApps to transition from testnet to mainnet. This phase will also include the start of Rolldrop Season 2.
3D Permissionless RollApps:
This phase will remove the need for Dymension governance to approve new RollApps.
4D Internet of RollApps:
At this point the Hub will be thriving with an economy of global RollApps that interconnect to a number of autonomous crypto services, games, and applications.
What is Cøsmostation?
Cøsmostation is a Cøsmos genesis validator and a key player in the Cøsmos ecosystem, providing invaluable infrastructure legos essential for scaling and onboarding users onto blockchain networks. Cøsmostation also bootstraps networks and onboards end-users.
Mintscan
Moreover, Cøsmostation offers its own blockchain explorer, Mintscan. It provides insightful interactions with chain data across various networks and also features a user-centric design, with transparency placed at the core of its ethos.
