Many take into account dYdX as one of the crucial profitable Perp DEXs, and absolutely it’s. Nonetheless, it’s being challenged increasingly ceaselessly than earlier than.
DeFi world is seeing technological iterations every single day, and no venture can relaxation on its first-mover benefits. Modern latecomer derivatives buying and selling platforms reminiscent of GMX, MYX, Hyperliquid and others, are making each effort to attract nearer to dYdX.
The dYdX redemption
dYdX is a captivating and dependable venture. Based in 2017, it makes use of the standard central-limit order e book and matching engine to facilitate trades on a decentralized sensible contract protocol. Because the “elder brother” in Perp DEXs, dYdX is continually upgrading itself and now has been up to date to V4. However, in contrast with new-born derivatives buying and selling platforms, dYdX is lagging behind, particularly on the subject of buying and selling facilitation mechanisms.
In contrast to different high Perp DEXs, dYdX utilized a central-limit order e book as an alternative of the AMM mannequin. This mannequin introduced many benefits to early dYdX customers: buying and selling on dYdX is similar to buying and selling in centralized exchanges, and customers can discover ways to commerce very quick; the order e book design can present deeper liquidity and assist for superior order sorts.
Nonetheless, the order e book mannequin just isn’t with out its warts. It brings challenges, reminiscent of want for a considerable amount of liquidity, the low effectivity of capital utilization, susceptible to sandwich assaults and different typical on-chain assaults, the excessive price of information storage and on-chain computation which restricts the variety of tradable tokens. Even with steady upgrading, dYdX has been mired on find out how to obtain the “self-redemption of order e book design”.
The 3r-generation DDEX revolution led by MYX
The Third-generation DDEX revolution is led by MYX, a by-product protocol present in 2023. In comparison with dYdX, MYX is completely a “freshman”. Although its valuation is comparatively low for the time being, MYX has change into the quickest rising Perp DEX with its MPM (Matching Pool Mechanism) , hitting the $1B Every day Vol inside solely 39 days. Compared, dYdX achieved this quantity inside 208 days.
MYX realizes MPM by introducing the idea of liquidity pool, the place Liquidity Suppliers (LPs) can present funds, passively assume positions and act as counterparties to facilitate speedy buying and selling. This mechanism ensures good liquidity available in the market and permits customers to open or shut positions at any time. LPs cowl potential losses by reserving collateral and have the chance to earn buying and selling charges and revenue on their positions. On the similar time, MYX innovatively introduces funding charges and “Maker rebate” into MPM as a solution to steadiness the pursuits of each lengthy and quick sides and clear up the issue of long-term place imbalance.
In a balanced market, MYX’s MPM mechanism can display increased capital effectivity than conventional P2Pools. Because the MPM solely bears the web publicity of lengthy and quick positions, LPs bear much less danger. In a market the place lengthy and quick positions develop alternately, MPM can assist an open curiosity that’s dozens of instances its personal place dimension with restricted capital, which not solely boosts LPs’ returns and eliminates their over-reliance on “betting returns”, but additionally permits the platform to cut back buying and selling charges to as little as 1bps.
To deal with market imbalance state of affairs, MYX launched a dual-token design, which allows LPs to obviously handle their very own publicity, flexibly select to hedge their passive positions in different markets, or bear the revenue and loss brought on by place fluctuations. On the similar time, MYX additionally employs an oracle machine to facilitate order matching. Counting on the off-chain computing functionality offered by oracle machines, MYX customers can expertise comparable and even higher buying and selling expertise than CEXs.
As crypto market usually sees excessive fluctuations, MYX additionally launched the Auto-Deleveraging System (ADL) to deal with this state of affairs. When the buying and selling quantity dramatically enlarges and the scale of open positions far exceeds that of the liquidity pool, the system will reject new orders. ADL forces liquidation of essentially the most worthwhile reverse place to alleviate the extent of the market imbalance.
Whereas offering a high-level buying and selling expertise with a really low buying and selling price(0.02% for maker and 0.04% for taker, MYX additionally pays nice consideration to the pursuits of the neighborhood customers and supporters. In March this yr, MYX launched “Venture Origin”, which continues to be underway, airdropping 200,000,000 tokens (20% of its whole token provide) to neighborhood members and supporters. It’s estimated that the third part of “Venture Origin” shall be dwell very quickly.
With the secure, easy and environment friendly buying and selling expertise, MYX has attracted over 33,000 customers with a every day buying and selling quantity of greater than $200 million shortly after its launch on Arbitrum in February this yr. Such a development price of consumer numbers and buying and selling quantity is gorgeous even within the present crypto market. MYX shall be reportedly launched on Scroll within the close to future. We’ve got little doubt MYX won’t solely deliver a brand-new buying and selling expertise to all Scroll ecosystem customers, but additionally proceed its speedy development momentum.
The blue-eyed boy of worldwide capitals and high VCs
MYX’s progressive product and quick consumer development price attracted the eye of high worldwide capitals from the very starting of its existence. In November 2023, MYX accomplished a $5 million seed spherical of financing with a valuation of $50 million, led by HongShan (Sequoia China), Consensys, Hack VC, and different top-tier VCs. Backed by high VCs, MYX reached numerous types of strategic cooperation with crypto gamers reminiscent of OKX, Izumi, zkPASS, Pyth, and so forth. to empower its ecosystem.
With the secure and easy buying and selling expertise supported by MPM, MYX is undoubtedly changing into a member of the “High Perp DEXs Membership”. It is rather like a compressed spring. Should you make investments extra and wager extra on it, it would acquire extra kinetic power, silently retailer up its energy, and for the time being of launch, it would leap upward and multiply the funding you made in it, hovering into the sky.