Perpetual swap trading has been a niche within the decentralized finance sector that has been gaining momentum in recent years.
The new era of decentralized exchanges (DEXs) is expected to natively offer options for automated contracts with no expiration date and no third-party intervention, with a strong focus on self-custody of funds by users.
Thus, since their inception, Perpetual DEXs have rapidly evolved to offer continuous and unrestricted opportunities for non-custodial, transparent and secure trading of digital assets.
This crucial sector has seen significant evolution since the last DeFi Summer, and competition among platforms has never been fiercer.
Platforms such as dYdX, operating on its own chain, or Zeus Exchange, built on the eco-friendly 5ire Chain and with its mainnet launch expected in 2025, are just a few options available for everyday users and advanced traders seeking the best cost-benefit ratio.
But how do established giants in the decentralised perpetual exchange space compare with emerging platforms? This article explores the diverse options available for trading perpetual contracts in DeFi without intermediaries.
Metrics on the Rise
Decentralised perpetual trading stands out because users can trade crypto assets with high leverage and no expiry date. Unlike traditional futures contracts, perpetual swaps have no maturity date, allowing users to keep positions open for as long as they wish.
According to data from Artemis, $508.1 billion in trading volume was recorded among the top perpetual protocols over the past three months. Hyperliquid, Jupiter, dYdX, GMX, and Drift Protocol lead the rankings in a sector already boasting hundreds of protocol variations for perpetual swaps.
Hyperliquid dominates trading volume in the last quarter, capturing 54.3% of the sector total, with a 215% increase in the past three months. Hyperliquid also tops the ranking for daily traders at 22,549 (49.3% of top perpetual protocols).
Meanwhile, in recent hours, Jupiter surpassed Hyperliquid to become number one in TVL, reaching $2,473.7 million, representing a 108% increase in the past three months.
Some key metrics summarising the sector’s growth in recent months include:
- Trading Volume: Hyperliquid ranks #1 in daily trading volume at $224.9 million.
- Traders: Hyperliquid leads with 5,851k daily traders.
- TVL: Jupiter surpassed Hyperliquid, now at $2,473.7 million.
- Gas Paid: GMX is #1 in daily gas fees, totalling $2.3k.
- Protocol Fees: Aave leads with $2.4 million in fees over the last 24 hours.
Decentralised Perpetuals Exchanges (DEXs) review
Perpetual DEXs combine the best of decentralised exchanges and perpetual contracts. They enable non-custodial and permissionless trading by leveraging blockchain networks to facilitate continuous and automatic digital asset exchanges without needing buyer-seller matching.
Some platforms, like Aave, offer hybrid solutions, while others, such as Zeus Exchange, are fully decentralised. This means any user can access the DEX, and funds remain in the user’s wallet. All operations are automated via smart contracts, ensuring users maintain full control over their funds.
Perpetual DEXs use automated market makers (AMMs) to facilitate transactions, allowing traders to instantly buy or sell any amount of an asset. This is made possible by the deep liquidity pools these exchanges rely on, which minimise price deterioration for liquidity providers and reduce slippage risks for traders.
Key Features of Perpetual DEXs
In general, perpetual DEXs offer traders the following significant advantages:
- Uninterrupted Perpetual Swaps: Trading is available 24/7.
- High Leverage: Traders can speculate on future asset prices with leverage up to 100x.
- No Expiry: Unlike traditional exchanges, traders can keep positions open indefinitely.
- Decentralisation and Non-Custodial: Platforms like Zeus Exchange operate without intermediaries, ensuring users retain full control over their funds through smart contracts.
- Deep Liquidity: This enables traders to enter and exit positions as frequently as desired.
- Anonymity: Some platforms do not enforce KYC requirements, offering traders a high degree of privacy.
- Low Transaction Fees: Especially on blockchain-efficient solutions like 5ire …
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