Link copied 
A major step was recently taken towards the full decentralization of dYdX, a renowned cryptocurrency exchange. The development squad at dYdX declared the unveiling of a public testnet for its upcoming "v4" version, signifying the completion of the fourth milestone out of a. The mainnet launch of v4 is now on the horizon.
The imminent v4 iteration is envisioned to enable complete decentralization of the platform, marking a significant shift in its operations. Currently, dYdX, which operates atop Ethereum and StarkEx networks, is categorized as a decentralized exchange (DEX) since it refrains from holding users' funds. But its core feature, a centralized order book, and matching engine that supports limit orders by market makers, sets it apart from conventional DEXs like Uniswap, which utilize on-chain pricing algorithms.
This centralized component is set to be eradicated in v4, thereby achieving a fully decentralized exchange without depending on an automated market maker. The plan is to move parts of the application onto a separate dYdX network with dedicated validators to store the order book on-chain. As of July 5, 5:00 pm UTC, users are allowed to request testnet funds to experiment with the application, including placing dummy trades and assessing profit and loss. However, the capability to test network bridging remains a work-in-progress and will be incorporated during the testnet phase.
Once the testing stage concludes, the development team aims to commence the final milestone, which involves integrating stablecoins and providing compatibility with the Cosmos Inter-Blockchain Communication to permit Cosmos users to use the app. The official launch of version four will take place after the completion of this milestone.
The move towards decentralization follows a series of significant events at dYdX. The exchange suspended operations in Canada last April due to regulatory constraints. Moreover, a promotion in September 2022 offering a $25 bonus to new users who could verify they were not bots met with resistance from privacy advocates, leading to its subsequent discontinuation.
