Perp DEXs have been really picking up steam recently, with more trading volume and daily users. It's easy to see why they're getting popular:
1. No trading fees
2. Big leverage options
3. Ample liquidity
4. Decentralized nature
5. Tight spreads
After Hyperliquid made waves, newcomers like Lighter, Avantis, and AsterDex are now in the game, each bringing fresh ideas. AsterDex is noteworthy for its "hidden pool" feature that lets large perp trades happen without showing up on the public order book, helping to minimize risks of market manipulation.
So, as traders, do you all think perp DEXs are going to shape the future of trading and change the game? Or are we just looking at another trend that's gonna fade when the market calms down?
No matter what the exchange it is, there will be trading fee. Hyperliquid will have trading fee.
Yes, there is high leverage on the exchanges.
The exchanges are not decentralized the way people think they are, but you can make use of the exchange without any need for KYC.
I believe it's just a hype wave but let's give it time, we will be able to make better judgment after some time. I think the rush for such platform is because traders don't have to undergo KYC verification. Remember there are countries where PERP trading in banned such as the US. Such platforms provide an opportunity for them to trade perps unlike the other exchanges that first need one to verify their account.
Certainly this is something that people ignore.
Most of Perp DEXs requires deposit to custodial wallet to their contract, so our money is in their contract. I don't understand how it can have DEX on its name, maybe because it's KYC less.
Even then there are CEXs that don't really require KYC for low volume, are those considered DEX too? . Semantic aside, I do think Perp DEXs is the future because it's not as complicated as CEX upon registration.
Your post is contradicting. You said it is a hype, but later you said it is useful because some people are not able to make use of perpetual future on KYC exchanges.
I think they are not hypes at all but a new way to have privacy while trading on the spot and derivative market.
I have not tried any before, but I think I will do that soon.
There is no contradiction, bud.
The hype is actually due to the no KYC restrictions for now. So the volumes are headed there right now. But when the lawsuits and crackdowns start, things will start to fall apart. I know you know how those countries hate the regular traders from accessing futures and perpetual trading and thus that's why they set up even regulatory bodies such as CFTC, Ontario Securities Commission (OSC), Financial Conduct Authority (FCA) etc. I don't want to be the prophet of doom, but it looks like we have seen this kind of storyline before.
There is no KYC requirement from Perp Dex now, and there is no regulation on it now but it will change, even change very quickly in the future. With rapid growth of cryptocurrency industry, regulations will be adapted and changed quickly while governments always want to do KYC, AML and have data on their citizen financial flows so that they can tax you as most as possible.
Perp DEX have their tokens which are dangerous for anyone interested in as with sudden strict regulation drops on, those tokens can crash in prices and you can not know when it happens. It's my reminder on people who think Perp DEX has bright future and want to take risk with Perp DEX tokens.
I think there are too many perp dexes, like there were too many defi lending platforms (before a couple collapsed). I'd be cautious the same might happen here.
I also watched MYX's coin (on BNB chain) do 10x in the space of a few weeks so now I'm not convinced these aren't a bubble (that's not an unsustainable price and is a reasonable valuation for the platform as it's been growing for years, I just don't think these exchanges aren't without their risks or issues). JLP (the Jupiter perps liquidity coin is also one that looks pretty strong but it's yield isn't that big - seems to average around 20% now, possible does worse when you add in the market volatility of the sol, Eth and wbtc that back it).
The only exchange that I know that has a "Zero-fee trading" is MEXC, and they only allow it on specific coins (like around 5 I think). Except from that, all including these PERP DEXes still has a trading fee.
I've traded on AsterDex for quite some time already, and I disagree with what you said that they have 0-fee trading because they have although it's lower, but they still have. As for high-leverage though, they have a maximum of x1001, but I will not that touch that one at all. I don't even go beyond x100 even on Bitcoin or even x50, let alone x1001. Overall, PERP DEXes is where the hype is right now, and it's good have it so that traders will have another option just in case they don't want to send their personal information on these CEXes just to access their platform.
Expect more PERP DEXes being created in the future. Expect more and more changes about it in different areas. I wonder though if it will continue that they will not require their users to pass KYC.
Here's the truth, perp dex of today is actually just a CEX with web3 login.
Your money is still in their custody, they use multisig to secure the money and everything didn't really happen on-chain.
Whether it's gonna be the future or not, I don't really know, maybe it's just a hype.
But i'm waiting for the real perp dex to actually come not just some pseudo-dex.
To be fair, it's hard to know whether Perp DEX is a long term trend or just a passing craze in the market. But considering factors like the involvement and leadership of CZ, who created the world's leading exchange Binance and is a visionary in the market. Not to mention, CEXs are facing and are under strict government regulation. Combining the two together, I think Perp DEX can become a new force and represent the future of this industry rather than a passing trend like P2E, NFT.
I agree with everything, but what I disagree with is (NO FEES). This needs further investigation. How can that be possible? Don't developers need operational funds to manage their DEXs, both for services and marketing? Where do they get that funding, if they don't receive fees from user trades?
This sounds ridiculous to me. Is there anyone who works for the community for free? They need income to support their families.
I agree with you.
DEX and Perp DEX will be next targets of governments to require KYC or anything that is stricter against users in order to help governments avoiding tax losses from their citizens. It will be attacked and regulated more like mixers, gambling sites, centralized exchanges and privacy coins.
Perp DEX can create hype in early months or years but in the future suddenly there will be legal attacks against them. Like years ago, we had almost no KYC on centralized exchanges and now your have to complete KYC on Tier 1 exchanges.
There's no such thing as zero fee with most of perp dex, since I trade a lot I know many of them and so far the only one that have zero fee is lighter but it's only within promotional phase to attract users and liquidity.
As far as I know hyperliquid took 0.45% and 0.015% for taker and maker in the perpetual and the fee is tiered depends on your volume and account tier.
It's basically the same as CEX in my opinion, no difference at all. So the statement that there's no fee is actually misleading.
Yes, you are correct about hyperliquid. I am aware of Lighter, and many people promote its advantages, stating that it is significantly cheaper than any other platform on DEX, or arguably free of charge. It could be a promotional tactic to encourage users to try it and switch, considering that transaction volume increased rapidly when the news spread. However, I believe this is unlikely because they require revenue.
The mechanism is not much different; what sets them apart is their status and transparency, which makes it an idealistic approach to an innovative perspective.
I am convinced DeXes are the future.
Centralised Exchanges have been to lazy on improving their performances, and new players cam in gaining market share.
Also, protocols like Hyperliquid made a lot of persons very rich via farming airdrops, hence a lot of user will stick around those platforms for a long time.
OP is misunderstanding promotional phase and think it's free.
None of the Perp DEXs is free, they're only offering no fee for limited amount of time, just wait until 1-2 month after TGE you'd see the Perp Dexs charging fee.
Maybe they only become free when you hold big chunk of their tokens.
Crypto started decentralized but later on, centralization were gaining a momentum.
It is only nice to see that we now have such a thing as Perp DEX. Maybe this is one of our hopes to regain that decentralized legacy on cryptos.
Maybe that was true that plenty of people got enriched by hyperliquid but it shouldn't just end there, we can't just disregard those who also lost their money on it. I am very sure that their numbers were also a lot.
I believe in the saying that nothing is permanent in this world, so there should be a time that hyperliquid or those that are profitable on it before, will experience a decline on their income but there can still be a thing that will come.
They certainly are. I for one think that perp dexes are not trying to doing anything sophisticated but rather, bring more trust into the trading system. For instance, traders usually accuse centralized exchanges of manipulation and the fact that they can do whatever they want to you and still tell you to go f**k yourself. I have often heard traders saying exchanges prefer to favor their market makers than actual retail users and if that's the case, it's no wonder why everyone immediately flocked to hyperLiquid even though positions there are public and permissionless.
Perp DEXEes level the playing field in a way and that's why I think it's one of the main reasons for hyperLiquid success