The ecosystem of decentralized perpetuals is gaining popularity, transforming its crisis experience into new opportunities for traders and platforms.
After the Crisis: A New Era
The crisis of winter 2022, linked to the collapse of FTX, seriously undermined trust in the crypto derivatives market. Traders realized their main fear was not price volatility but the fact that funds could be frozen and unavailable. As a result, decentralized perpetuals emerged, offering new solutions: dYdX uses an order book on Ethereum Layer 2, GMX employs simplified market making through a shared pool, and Synthetix utilizes debt pools as counterparties.
Five Paths in the Same Race
Each perpetual protocol has its unique characteristics. dYdX can be compared to a hybrid car that balances performance and efficiency. GMX resembles public transport, where all participants (GLP holders) jointly fund the pool. Hyperliquid focuses on speed with minimal latency, while Synthetix acts as a city-state. Aevo offers a multifunctional tool with capabilities for working with perpetuals and options.
Black Swans and the Magic of Liquidity
Not all perpetual models are resilient to sudden market changes. Each platform has its weaknesses: on dYdX, it's crucial to react quickly to liquidations, while on GMX, losses directly affect the GLP pool. Liquidity proves to be a key factor attracting both professional and retail traders. Hyperliquid has gained popularity, becoming the 'Binance of DeFi', while GMX faces outflows as GLP yields decline.
Decentralized perpetuals may become an essential part of the crypto market infrastructure, akin to electricity and water, providing reliability and innovative solutions for traders.
