dYdX Chain Adds Support for Liquid Staking

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The team working on the development of the Cosmos-based dYdX Chain L1 network has recently introduced a new feature that enables liquid staking of the platform’s native DYDX token.

This was made possible through the latest update to version 3.0. The upgrade also integrated Inter Chain accounts, which provides support for Liquid Staking Provider (LSP) protocols.

As a result, derivatives based on the DYDX token can now be locked in staking and traded or used in decentralized finance (DeFi) applications.

Several other projects, such as Stride, Persistence, and Quicksilver, have announced their plans to offer similar services in the near future, according to The Block.

The latest version, v3.0, also includes improvements to the elimination mechanism and a more controlled approach to closing positions, as well as simplified margin requirements.

Launched in 2020, dYdX is a leading decentralized cryptocurrency derivatives exchange with a cumulative volume of over $1 trillion as of August 2023.