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dYdX partners with StarkWare to scale non-custodial exchange. dYdX has made an announcement of their partnership with StarkWare. dYdX runs on audited smart contracts on Ethereum, and enables trading with no intermediaries. It allows traders to move quickly, while maintaining full control of their assets.
Their engineering teams are in collaboration with the blockchain tech company on a Layer 2 scaling solution for Perpetual Contracts, based on StarkWare’s StarkEx scalability engine and dYdX’s Perpetual smart contracts.
The perpetual contracts would be powered by StarkEx by the end of this year. To provide the best user experience for traders, the transition to Layer 2 is decided. Traders can expect significantly lower gas costs, and in turn, lower trading fees and minimum trade sizes. Because, layer 2 solutions for ETH-based systems use the Ethereum blockchain for verification of off-chain transactions, significantly reducing the costs and gas fees.
The business integration helps traders in many ways, namely, significant reduction in gas, trading fees & trade sizes, swift trade settlement, & cross-margin.
StarkWare is developing software to dramatically improve blockchain scalability by enabling any type of computation to move off-chain, using the Ethereum blockchain as a public immutable commitment layer.
