Perp DEX's Technology Innovation and Market Competition: Opportunities and Challenges for On-Chain Perpetual Contract Exchanges

Decentralization Perptual Futures exchange ( Perp DEX ) has become one of the most vibrant areas in the DeFi ecosystem. Not only has the annual trading volume repeatedly reached new highs, but the platform's innovations and strategic products are also emerging one after another. On-chain researcher JasonZha has conducted an in-depth analysis of the development context of Perp DEX, platform competition, and future potential, revealing the key trends in the on-chain derivation market.

From dYdX to Hyperliquid: The Evolution of Perptual Futures DEX

The origin of Perp DEX can be traced back to 2019, when dYdX first launched the on-chain order book (order book) perpetual futures trading model, laying the foundation for the decentralized derivatives market.

Subsequently, GMX introduced the (Liquidity Pool) structure, and Hyperliquid, which sparked controversy due to the HLP Vault takeover mechanism, also rapidly rose to prominence with innovative technology, further enriching the market landscape:

These platforms stimulate a large amount of on-chain liquidity and user participation through AMM, Vault, arbitrage, and hedging strategies.

(Hyperliquid HLP adjusts the BTC and ETH leverage limits after damage, emphasizing the market competitiveness of data transparency)

Diverse strategies and ecosystem expansion: High APR and arbitrage opportunities attract capital inflow.

JasonZha pointed out that the prosperity of Perp DEX is inseparable from complex and innovative financial strategies. For example, the Delta Neutral hedging strategy of Jupiter JLP has provided an annualized return of over 100%, attracting numerous investors.

In addition, Drift and taoli.tools also provide strategy modules and automation tools, becoming powerful tools for users to activate arbitrage and risk control, further strengthening the overall ecosystem.

Market Status: Hyperliquid Dominates, Competitors Are Left in the Dust

Dune data shows that in 2025, the average weekly trading volume of Perp DEX will reach 8 billion USD, which, while still far below the approximately 300 billion USD of CEXs like Binance, demonstrates strong growth momentum.

Among them, Hyperliquid holds the market leader position with over 60% market share, thanks to its high-performance trading architecture and innovative liquidity solutions.

Jason Zha has summarized the features of various platforms:

( Deepen your understanding of )

dYdX: Professional trader-oriented, using an order book model, with stable fee income.

GMX: Emphasizes Decentralization and rewards for liquidity providers, with a funding pool mechanism.

Hyperliquid: A market leader with deep and liquid architecture attracting users, but there are potential centralization risks.

Jupiter: High APR and strategic flexibility attract yield-focused users.

Cost Revenue Reveals Potential: Is Perp DEX Becoming a "Printing Press"?

JasonZha also compiled last year's data, and the fee income performance of the Perp DEX platform was outstanding:

GMX: Revenue from fees in 2024 is approximately $100 million, with a total of over $400 million since the product launch.

Hyperliquid: Estimated revenue of $250 million in 2024, with cumulative revenue of approximately $295 million, reaching $45 million in the first quarter of 2025.

dYdX: Estimated revenue of $50 million in 2024, with total revenue of approximately $85.2 million.

These data show that even though the scale is not as large as CEX, Perpt DEX still has strong potential in profitability and user stickiness.

(dydx Annual Report: In 2025, DEX derivation volume is expected to reach 3.48 trillion USD, with US regulation as the main driving force)

Current challenges: Perp DEX lacks long-term competitive advantages

Even with the market being hot, many observers have pointed out its potential risks:

Lacking a long-term moat, it is easy to fall into intense competition.

If the platform cannot continuously connect with the actual demands of Decentralized Finance, it may lose its core value.

But on the other hand, JasonZha also pointed out:

The role of Perp DEX as a foundation for on-chain financial strategies is becoming increasingly clear, and it is expected that more programmable and modular products will be launched in the future, allowing for more immediate and effective value capture.

The Mainstream Path of Perp DEX

In the long run, Perp DEX, as an important part of DeFi infrastructure, is attracting the attention of global traders and developers with its transparency, users' autonomous control over funds, and rapid deployment capabilities of innovative financial tools.

However, if it is not possible to create lasting differentiation through technical barriers, user habits, capital networks, and governance mechanisms, it will ultimately fall into an endless competition of "mechanisms, costs, and subsidies."

As the ecosystem matures, Perp DEX is expected to continue expanding its market influence after 2025, driving blockchain derivation into the mainstream financial landscape.

This article "Technological Innovations and Market Competition of Perp DEX: A Brief Discussion on Opportunities and Challenges of On-chain Perptual Futures Exchanges" first appeared in Chain News ABMedia.