Exploring Migration of dYdX to a New Blockchain

dYdX Chain
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Since the successful launch of dYdX Chain on Cosmos SDK, the protocol has proven its independence, scalability, and commitment to decentralization. However, several limitations have emerged over time:

  • limited liquidity integrations across ecosystems;

  • low cross-chain user activity;

  • latency and UX bottlenecks due to IBC dependencies;

  • barriers for users migrating from other DeFi networks.

As the market evolves and trading standards rise, it may be time for the DAO to explore a migration or expansion strategy to a more performant and interconnected network—one that offers:

  • higher throughput and lower latency,

  • better DeFi composability,

  • a larger base of traders, liquidity, and integrations.

:gear: Potential Directions

Following the example of infrastructure projects like Akash Network, which is winding down its Cosmos chain and considering a move to Solana, dYdX DAO could begin a similar exploration of alternative network environments:

  1. Solana — exceptional speed and parallel execution, deep liquidity, active DeFi ecosystem, and growing institutional market-making presence.

  2. Ethereum L2s (Blast, Arbitrum, Optimism) — easier user onboarding, strong composability with existing liquidity, and broad infrastructure support.

  3. Custom Rollup (e.g., Celestia, EigenLayer) — customizable execution environment with retained sovereignty and native token economics.

:light_bulb: Objective

  1. Gather proposals from blockchain foundations willing to support migration or expansion.
  2. Evaluate technical trade-offs, liquidity potential, and governance implications.
  3. Define the criteria for choosing a new home: throughput, composability, liquidity depth, ecosystem incentives, and developer tooling.

:puzzle_piece: Conclusion

Migration should not be viewed as a retreat from Cosmos, but as a strategic reboot — an opportunity to rebuild on a faster, more liquid, and more connected network, ensuring dYdX remains a leader in on-chain derivatives for years to come.

:speaking_head: Discussion is open.

Ecosystems, foundations, and validators interested in supporting or hosting the next phase of dYdX are invited to participate below.

6 Likes
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I fully agree with this. There are many chains with more capital. That would solve the liquidity issue.

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I don’t understand why we even chose a dead blockchain like Cosmos…
Can someone explain this to me?

In my opinion, Ethereum would be the best option in terms of security and liquidity. Solana’s performance would be better, but this blockchain has also experienced some outages in the past.

For me, security and liquidity are more important than performance

4 Likes