Can dYdX Become a Decentralized BitMEX? How It Is Scaling With StarkWare - Ep.218

Antonio Juliano, founder of the decentralized exchange dYdX, and Eli Ben-Sasson, cofounder of StarkWare, discuss the recent launch of dYdX on Ethereum layer 2 using StarkWare’s scaling technology. In this episode, they cover:
what cross-margin perpetual trading is and why dYdX chose StarkWare to be its scaling partner (1:13) ZK rollups and how they contrast with optimistic rollups (8:49) how many transactions per second StarkWare can handle through its layer 2 solution (16:57) lessons learned and critical takeaways from their six months spent working together (20:15) the similarities between Ethereum and StarkNet (26:07) why Antonio believes that scalability is more important than composability (27:30) the benefits of decentralized exchanges and how dYdX fits into the dex marketplace (31:54) why dYdX chose Chainlink as its oracle provider, and how it got oracle prices onto layer 2, which previously had none (38:11) why Cairo, StarkWare’s Turing-complete programming language and platform, can be the “one verifier to rule them all” (42:10) what it was like for StarkWare to compete in the Great Reddit Scaling Bake-Off (45:41) whether or not DeFi could handle a GameStop/Robinhood situation (48:56) fair launch tokens versus VC tokens (54:12) the likelihood of dYdX and StarkWare each creating a token (58:19) upcoming developments and projects for both companies (1:02:14)
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Episode Links:
Antonio Juliano
Twitter: https://twitter.com/AntonioMJuliano  Eli Ben-Sasson
Twitter: https://twitter.com/EliBenSasson  dYdX
Twitter: https://twitter.com/dydxprotocol Website: https://dydx.exchange/  Exchange: https://alpha.dydx.exchange/trade/BTC-USD  Reading Material Recent funding: https://www.coindesk.com/big-guns-back-10m-investment-in-defis-dydx  2020 in review: https://dydx.exchange/2020.pdf  Decrypt profile: https://decrypt.co/resources/dydx-ethereum-margin-trading-platform-explained-learn  Medium post: https://medium.com/dydxderivatives/introducing-dydx-2d0f0f326fd StarkWare
Twitter: https://twitter.com/StarkWareLtd  Website: https://starkware.co/  Reading Material: ZK roll-up explainer: https://medium.com/starkware/on-the-road-to-starknet-a-permissionless-stark-powered-l2-zk-rollup-83be53640880  Understanding Cairo: https://medium.com/starkware/hello-cairo-3cb43b13b209  Funding: https://www.coindesk.com/paradigm-leads-30-million-funding-for-crypto-privacy-startup-starkware dYdX and StarkWare Relationship
Original Twitter announcement (2020):  https://twitter.com/dydxprotocol/status/1295791012552597507?s=20  The Block’s original coverage:  https://www.theblockcrypto.com/linked/75209/dex-dydx-starkware-layer-2  Layer 2 is live announcement:  https://twitter.com/dydxprotocol/status/1364591430447091719  Blog post on why dYdX is moving to Layer 2 (2021): https://dydx.exchange/blog/alpha  CoinDesk’s coverage:  https://www.coindesk.com/defi-tech-cefi-speed-dydx-touts-new-starkware-integration
Other
CoinDesk on Ethereum Layer 1 vs. Ethereum Layer 2: https://www.coindesk.com/value-layer-one-layer-two Roll-ups as throughput solutions: https://www.coindesk.com/ethereum-dapps-rollups-heres-why Vitalik on optimistic rollups vs. ZK-rollups:  https://vitalik.ca/general/2021/01/05/rollup.html Antonio showing how dYdX works: https://twitter.com/AntonioMJuliano/status/1364760651579551744 Optimistic Rollup Dilemma (written by StarkWare) https://medium.com/starkware/the-optimistic-rollup-dilemma-c8fc470ca10c ChainLink Tweet on dYdX + StarkWare relationship: https://twitter.com/chainlink/status/1364726829702148102  The Great Reddit Scaling Bake-Off https://www.reddit.com/r/ethereum/comments/hbjx25/the_great_reddit_scaling_bakeoff/