dYdX launched its cross-margined perpetuals product on a Layer 2 scaling solution powered by blockchain software developer StarkWare.
The move is significant as it highlights how some of Ethereum’s most well-known DeFi projects are migrating to scaling solutions amid rising gas costs to operate directly on Ethereum’s Layer 1.
$10M Trading Volume
StarkWare co-founder and CEO Uri Kolodny said that within 24 hours, dYdX’s layer 2 Perpetuals protocol exceeded $10M in trading volume. During dYdX’s closed alpha period, which launched in February, the protocol moved $90M in trading volume across 25k trades.
dYdxX’s layer 2 product currently supports BTC-USD, ETH-USD, and LINK-USD with zero gas fees and lower trading fees. It plans to support AAVE-USD, UNI-USD, and more token pairs in the near future.
dYdXwill be closing its Layer 1 Perpetuals protocol on April 20, so current users will need to close their positions on Layer 1 and open new positions on Layer 2.