Perpetuals: Expanding the Horizons of Expiry-less Futures

Perpetual contracts in the derivatives market allowed traders to break the shackles of fixed contracts expiry and the rigid settlements to traditional futures. With no expiry and the ability to be traded from almost anywhere in the globe, perpetuals has become the most traded derivatives product by volume.

The maturing of decentralized finance has allowed the incorporation of Perpetuals into self-custody DeFi systems and the sophisticated on-chain risk management systems, thus enhancing market efficiency and improving the overall trading experience.

The Revolutionary Cause: The Underlying Tech of Perpetuals

The flexibility and efficiency seen on perpetual contracts is the result of innovative technology. The dynamic funding rates aimed at closing the gaps between perpetuals and the spot market, the automated mark-to-market settlements, and the pricing efficiency guarantees in both the automated market maker and orderbook liquidity in liquidation all provide for seamless and riskless positions and order executions. With custom smart contracts and automated liquidation systems, high leverages of 150X, and on-chain transparency, self-custody of assets also provides the market with institutional quality systems from the Ethereum based Dexlyn.

From Fixed Traditional Futures to Flexibility of On-Chain Perpetuals

Tasks like manual rollovers and strategy pauses in traditional derivatives offer flexibility to traders and automate strategy. The on-chain persistent rollovers of DeFi contracts provide the ultimate flexibility in strategy by allowing seamless shifts. This innovation has transformed the derivatives market for both institutional and retail DeFi traders.

The current developments in perps are leading the changes in automating financial systems.

Dexlyn in the Spotlight: Supra L1’s Example of Innovative Perp Offerings

Dexlyn Trading Game Season 2 balances the innovative approach the platform has taken to make trading perpetual contracts fun and engaging. For a period of a few weeks, traders earn points for every trade they make, competing for a part of a huge $2,000,000 $DXLYN prize pool. Profitable and strategic trades add extra points too. This trading game system prizes skill and the ability to trade consistently, rather than the amount of capital one holds. This is a huge step for prize accessibility. Profitable and losing trades affect the rank and the system tracks this for the TGE and subsequent token pay-out. Having this competition as part of the platform, which combines competition with high performance, invites smart and loyal trading all while setting a new standard for the decentralized derivatives market.

On the Horizon: Broader Goals for Perpetual DEXs.

Perpetual DEXs will introduce cross-chain expansion, AI-powered risk frameworks, and more gamification tools focusing on user experience.

The increasing confidence of the regulators, the introduction of better oracles, and the onboarding of institutions are the main pillars of record sustained growth. We continue to hit recurring all-time highs in trading volume and on-chain TVL. With ecosystem growth and maturity, platforms like Dexlyn will set the standards for transparency, performance, and pioneering decentralization in the derivatives space.

How Perpetual Contracts are Shaping the Future of Crypto Derivatives was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.