On October 11, 2023, DWF Ventures disclosed its primary investment focus on derivative protocols, particularly perpetuals, through a comprehensive Hindsight article. The piece aims to dissect the landscape of decentralized exchanges (DEXs) concerning perpetuals, shedding light on prevalent innovations in this domain.
The journey of perpetuals commenced with Bitmex introducing them in 2016. Since then, the growth trajectory has been striking, with perpetuals now embodying a whopping 97% of the crypto market trading volume. The burgeoning interest in perpetual DEXs underscores the discernible disparity between centralized exchanges (CEX) and DEXs, and the boundless growth potential inherent in perpetual DEXs.
A stark contrast exists between CEX and DEX, especially in terms of central limit order books (CLOB) and trading processes. The blockchain constraints have posed a substantial challenge in mirroring or outstripping the…
