The Current Status and Future Trends of Perpetual Futures DEX Development

Perptual Futures DEX is rapidly developing, making significant progress in efficiency, speed, and scalability. They are not limited to trading scenarios but are also broadening the application scope of blockchain, paving the way for the large-scale adoption of web3.

Exchanges are the core of the cryptocurrency market, supporting market operations through user trading activities. The primary goal of any exchange is to achieve efficient, fast, and secure trade matching. DEX has made many innovations based on CEX, such as eliminating trust assumptions, avoiding intermediary control, and retaining control over user funds.

However, DEX often comes at the cost of higher latency and lower liquidity. According to data, the current spot trading volume of DEX accounts for 15%-20% of the total trading volume, while Perptual Futures trading only accounts for 5%.

Developing Perptual Futures business on DEX is not easy, as CEX has several advantages in Perptual Futures trading:

1. Better product experience
2. Market makers can provide finer spreads.
3. Better liquidity
4. Multiple functions can be combined in one stop.

The centralization of CEX has become an issue that users cannot ignore, especially as the collapse of FTX has intensified this trend. Increasing the usage rate of DEX can effectively reduce systemic risks and promote the sustainable development of the ecosystem.

The rise of Layer 2 and multi-chain ecosystems has created favorable conditions for DEX. Currently, the monthly trading volume of Perptual Futures DEX has exceeded 120 billion USD. To further develop, it is necessary to address the issues of low on-chain liquidity and high latency.

The Perptual Futures DEX adopts multiple pricing mechanisms, including oracle models, virtual automated market makers, and a combination of off-chain order books with on-chain settlement. Although the full-chain order book is the safest, it is significantly limited by blockchain performance.

Acquiring initial liquidity is a challenge faced by DEXs. New approaches include community-supported active liquidity pools and cross-chain liquidity acquisition. In terms of UX, DEXs compete through features such as gas-free trading and session keys.

Innovative financial products continue to emerge, such as Variance Perpetual Futures, Pre-Launch Contracts, RWA Asset Perpetual Futures, and more. Perpetual Futures DEX can also be used to improve prediction markets by creating multiple sub-markets for long-term events.

In the future, the Perptual Futures DEX will focus more on leveraging the advantages of decentralization, seeking a balance between efficiency and security. Community participation and user experience will be key. The Perptual Futures DEX is expected to become an important tool for promoting the mass adoption of cryptocurrencies, deeply integrating with fields such as news, politics, and sports.