dYdX launches version 5 with isolated markets and LP vaults

The decentralized finance (DeFi) protocol known as dYdX announced its latest iteration, “Dydx version 5.0.0,” introducing a wide range of blockchain application upgrades.

The highlight of the version 5.0.0 update is the implementation of isolated markets and margins. Isolated markets allow the separation of guarantee pools and dedicated insurance funds, which deviates from the previous system of interconnected guarantees.

This separation ensures that changes in one market no longer impact collateral requirements in other markets. Likewise, isolated margin allows traders to tie their collateral to individual trades rather than numerous trades, thereby increasing the efficiency of risk management.

dYdX introduced LP (Liquidity Provider) Vaults, facilitating automated liquidity provision strategies on the protocol layer. Vaults allow users to provide liquidity by depositing USDC, thereby increasing liquidity across markets in a permissionless, custody-less manner.

Additionally, the update integrates with Skip Protocol’s Slinky Sidecar and Raydium unlocks Oracle pricing for all Solana-based assets, while Slinky integration ensures block-by-block Oracle updates with lower latency .

In May, OKX introduced DYDX subscriptions on On-chain Earn, providing users with hassle-free access to on-chain rewards. This feature allows users to stake on DYDX simply by accessing the corresponding section on the OKX platform and selecting subscribe.

However, users are advised to review and understand the rules of each project’s proof-of-stake mechanism before subscribing. Although OKX facilitated the launch and distribution of rewards, it disclaimed any liability for disputes, hacking incidents, project fraud and other associated risks.

Read also: dYdX Community Votes to Stake 20 Million DYDX Tokens for Security

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