The dYdX V4 upgrade, launched in 2023, aimed for full decentralization by moving to a Cosmos-based chain, eliminating central control points. However, its off-chain order book and matching engine, managed by validators, sparked controversy. Critics argue this hybrid approach—off-chain for speed, on-chain for settlement—retains centralized elements, as validators could theoretically influence order processing, undermining true decentralization. Supporters counter that the off-chain order book achieves CEX-like performance while maintaining transparency and censorship resistance, with on-chain settlement ensuring trustlessness. Despite open-source code and community governance, debates persist over whether dYdX V4 fully aligns with DeFi’s ethos, as validator-managed order books raise concerns about potential manipulation or single points of failure, challenging the platform’s claim to complete decentralization.