August 23, 2022
June 4, 2025

v4 Milestones

dYdX
v4 Milestonesv4 Milestones

Introduction

dYdX is committed to creating the best product and establishing the gold standard in DeFi. To that end, we will provide periodic updates on what we are planning for the rollout of the new dYdX v4 open-source blockchain software (“dYdX Chain”) and solicit feedback and input at certain junctures.

We’ve split the development of the blockchain into several milestones so that we can test early-and-often, allowing us to validate our assumptions, find bottlenecks, fix bugs, and gather product feedback.

Each of our milestones contains a set of features to be built. Each milestone also specifies the release of a new software, or a significant evolution of an existing software. This serves to expand the scope and quality of integration testing that we will be able to perform.

Planned Milestones

During each milestone we will add a suite of automated unit and integration tests, as well as use telemetry to identify opportunities for optimization. We also plan to continuously build both a graphical front-end interface as well as an indexing service that can store and serve historical data more efficiently than a default full-node.

In addition, at the completion of each milestone, we plan to release a major update to the software.

Below we detail the major features to be built for each milestone as well as the associated software release.  As the project progresses, we may need to make adjustments to certain projected milestones, and will keep the community apprised.

Milestone 1 - Developer Testnet - Complete!

This milestone was to allow for basic trading on the blockchain so that we could start testing as early as possible. The main features of this milestone were:

  • Orderbook & Matching-Engine
  • Margining System
  • JavaScript Client
  • Telemetry & Monitoring

As part of this milestone, we have created an automated way to spin up a developer testnet consisting of multiple validator nodes across multiple continents that allows us to stress-test the system in a higher-latency environment.

Milestone 2 - Internal Testnet - 2022 Q3

This milestone is to complete all of the basic functionality needed for the software to power an exchange. The main features of this milestone are:

  • Fees
  • Liquidations
  • Oracle Price Updates
  • Static Funding Rates
  • Token Transfers

This milestone will also take the developer testnet and transform it into a more stable testnet with a larger number of validator nodes. This testnet will still remain internal to dYdX, but will allow for more robust testing by developers, including those building end-user products.

Milestone 3 - Private Testnet - 2022 Q4

This milestone is to complete more advanced features. The main features of this milestone are:

  • Validator Staking
  • Dynamic Funding Rates
  • Key-Permissioning & Access Management
  • Advanced Order Types
  • Documentation for Validators
  • Indexing Service

This milestone will see the creation of a private testnet that’s external to dYdX. We will work with a limited set of partners to ensure that the documentation and setup for running validator nodes and full nodes is as easy and fully-featured as possible.

If you are interested in participating as a validator in this testnet, please fill out this form.

Milestone 4 - Public Testnet - 2023 Q1

This milestone is to build the rest of the functions that can be added on to a non-production chain and to test on a publicly available network. The main features of this milestone are:

  • On-Chain Governance
  • Token Emissions & Rewards
  • Wallet Compatibility & Onboarding

This milestone will see the evolution of the private testnet into a public testnet that allows anyone to trade testnet tokens as well as run validators and full-nodes.

Milestone 5 - Mainnet - 2023 Q2

This milestone is for polish, optimizations, and to build any other necessary features for the open-source release of our mainnet software. The main features of this milestone are:

  • IBC Connections to other Blockchains
  • Stablecoin Integration

Post-Mainnet

If mainnet is deployed, there could be three parallel networks:

  • Internal Testnet
  • Public Testnet
  • Mainnet

This will allow for future testing of features and upgrades in real-world environments.

Progress so Far

As previously mentioned, we have fully completed Milestone 1 including stress testing our Developer Network and have achieved 500 order placements per second and 50 trades per second. We plan to continue to optimize this over future milestones.

We are now in the middle of working on Milestone 2, and will release another update after completion.

Conclusion

We’re extremely excited to continue building out the dYdX Chain and plan to release updates in the form of blog posts for each future milestone.

Legitimacy and Disclaimer

© 2025 dYdX International Ltd. All rights reserved.

dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to U.S. persons as well as for Restricted Persons as set out in the dYdX Software Terms of Use, accessible: https://dydx.exchange/v4-terms. dYdX International Ltd (“DI”) does not develop, control or participate in the operation of any component of the dYdX Protocol (including the MegaVault).

The information provided in this website is for general informational purposes only and DI reserves the right to update, modify, or amend any contents herein, at its sole discretion and without prior notice.  Nothing herein should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act in any way by anyone.

Engaging in any activity involving crypto-assets (including trading crypto assets and depositing into the MegaVault) is risky due to high volatility. Returns are not guaranteed and may fluctuate over time depending on multiple factors, and you may lose your entire investment, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be suitable for retail investors. You should perform your own research and due diligence before engaging in any activity involving crypto-assets.

In no event will DI be liable for any loss or damage, including without limitation, indirect or consequential loss or damage, arising from or in connection with the use of this website. By continuing to access this website, you agree to the above and accept the possibility of changes in the information provided.

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© 2025 dYdX International Ltd. All rights reserved.

dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to U.S. persons as well as for Restricted Persons as set out in the dYdX Software Terms of Use, accessible: https://dydx.exchange/v4-terms. dYdX International Ltd (“DI”) does not develop, control or participate in the operation of any component of the dYdX Protocol (including the MegaVault).

The information provided in this website is for general informational purposes only and DI reserves the right to update, modify, or amend any contents herein, at its sole discretion and without prior notice.  Nothing herein should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act in any way by anyone.

Engaging in any activity involving crypto-assets (including trading crypto assets and depositing into the MegaVault) is risky due to high volatility. Returns are not guaranteed and may fluctuate over time depending on multiple factors, and you may lose your entire investment, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be suitable for retail investors. You should perform your own research and due diligence before engaging in any activity involving crypto-assets.

In no event will DI be liable for any loss or damage, including without limitation, indirect or consequential loss or damage, arising from or in connection with the use of this website. By continuing to access this website, you agree to the above and accept the possibility of changes in the information provided.

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By clicking ‘Continue’, you will be leaving https://www.dydx.xyz/ and accessing a website made available by a third party using dYdX v4 open-source software that is independent from and unaffiliated with dYdX International Ltd (“DI”). DI does not deploy or run dYdX v4 open-source software for public use, nor does it operate or control any or all parts of the infrastructure. DI is not responsible for any actions taken by independent third parties or for any codes, materials and contents on any third-party websites, including the one you would access by clicking ‘Continue’.

DI’s contents and services are not available to persons who are residents of, are located or incorporated in, or have a registered office in the U.S., Canada or any Restricted Persons as set out in the dYdX v4 open-source software Terms of Use, accessible here.  More details can be found in our Terms of Use. Learn more about dYdX v4 third-party front end options here.

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