Question 1

What is DYM?

Accepted Answer

DYM is the native asset of Dymension's settlement layer. Dymension is designed to provide settlement and interoperability infrastructure for application-specific rollups called RollApps; therefore, DYM is related to security participation and protocol economic design for that settlement layer, rather than necessarily being the native token of any individual RollApp.

Question 2

What is the role of a RollApp?

Accepted Answer

A RollApp is an independent execution environment allocated to a particular application: it processes that application's transactions and state transitions rather than competing with all applications for execution resources on the same chain. Dymension treats these application-specific rollups as deployable instances, allowing applications to retain their own logic and fee design while connecting to the settlement layer. This division of “independent execution, shared settlement” does not mean that a RollApp assumes all security responsibilities itself. The Litepaper describes a RollApp as an autonomous execution instance: it can have a native fee token and flexible logic, but receives corresponding services through Dymension's settlement framework.

Question 3

How does Dymension's layered architecture work?

Accepted Answer

Dymension separates execution, settlement, and data availability into different responsibilities. A RollApp's execution layer processes transactions; the settlement layer maintains state roots, handles disputes, and bridges between different environments; the data availability layer ensures that published data can be retrieved and verified. Therefore, a state update is not simply a matter of “completing a transaction on a RollApp.” Execution results must be submitted in a form that the settlement layer can track and dispute, and the related data must also be available; the purpose of this layering is to allow applications to choose data availability solutions according to their security and cost needs, rather than crowding all work into the same layer.

Question 4

Why do sequencers need to stake DYM?

Accepted Answer

Sequencers receive, order, and batch RollApp transactions, then form state updates for subsequent settlement. Under the Litepaper's design, entities participating in sequencing need to stake DYM and delegate to settlement-layer validators; in a decentralized sequencing model, relative stake affects the chance of obtaining sequencing slots. The stake here is not merely a usage fee. It links sequencing eligibility to collateral that can be constrained: if an update submitted by a sequencer is proven incorrect in a dispute, the relevant collateral may be slashed. Specific sequencing implementations and operating parameters still depend on the relevant RollApp and protocol implementation.

Question 5

Must fees be paid in DYM when using a RollApp?

Accepted Answer

Not necessarily. RollApps have fee autonomy, and an application can set its network fees in DYM, that RollApp's native token, stablecoins, or other assets; what users actually pay depends on the fee rules adopted by that RollApp. This differs from DYM's role in the settlement layer's security design: DYM can be used for staking arrangements related to settlement-layer participation, but the Litepaper does not make “every RollApp transaction must pay fees in DYM” a general rule.

Question 6

What happens if a sequencer submits an incorrect state?

Accepted Answer

Dymension uses an optimistic dispute approach: state updates can first be submitted, but during the dispute period other participants can verify the update. If someone raises a valid challenge, the settlement layer re-executes the disputed transaction in the RollApp Virtual Machine (RVM) using the same context to obtain a deterministic result. If re-execution proves that the submitted state is incorrect, the erroneous state is reverted and the malicious sequencer's collateral may be slashed. The dispute period provides a window for verification and challenges; it also means finality must be understood in conjunction with this mechanism, rather than based solely on the sequencer's initial submission.

Question 7

How does IRC support communication between RollApps?

Accepted Answer

IRC is an IBC-based cross-RollApp communication protocol. It uses the Dymension settlement Hub that RollApps connect to in common to pass messages between different RollApps, rather than requiring every pair of applications to establish a separate trust connection. Its significance is that applications can retain their respective execution environments and fee designs while communicating verifiably through shared settlement infrastructure. The existence of IRC does not mean that any asset or application is automatically compatible; the messages and assets that can actually be transferred still depend on the implementation of the relevant RollApps.

Question 8

What role does the built-in AMM play for RollApps?

Accepted Answer

Dymension's settlement Hub includes an automated market maker (AMM) that provides shared liquidity on top of shared security. It is positioned as infrastructure serving RollApps and can support asset routing and price discovery, rather than being merely a trading pool deployed independently by one application. The AMM's role is to provide a common liquidity layer for asset interactions among multiple RollApps; however, trading prices, slippage, and available liquidity are still determined by the state of specific pools, and the built-in AMM itself does not guarantee exchange depth or price for any asset.

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