CoinWorld News Report:
Author: NingNing Source: @0xNing0x
In the “never-sleeping” casino of the cryptocurrency market, we once again witness the magic of storytelling. The news that dYdX may launch a MEME coin Launchpad platform similar to Pump.fun has caused a 22% surge in $DYDX. But today, I want to discuss not the short-term price fluctuations, but the deeper issues reflected behind it.
1. When PerpDEX meets MEME: A destined “love-hate” relationship?
At first glance, PerpDEX and MEME coins seem like enemies. One shouts the slogan of “trillions of derivatives trading moving onto the blockchain,” a typical VC narrative; the other raises the flag of anti-authority and anti-VC, truly a rebellious figure in the crypto world. But upon closer inspection, aren’t their user profiles and business models surprisingly similar?
Both are selling “financial poison” with high volatility and high risk-reward ratios to players on the blockchain who crave excitement, such as Degen, Chad, Jeet, and other types. It’s like comparing a high-end restaurant to street food – one appears elegant, while the other seems vulgar, but in the end, they both satisfy people’s appetites.
2. The secret to Pump.fun’s success: Simple yet effective
Why can a platform like Pump.fun achieve significant success in such a short time? The answer lies in its simple yet effective product paradigm: bonding curve + AMM (xy=k) curve.
This seemingly simple model solves several key problems:
– Low entry barrier: Anyone can become a coin issuer, anyone can become a reaper. Isn’t this the essence of “decentralization” in the eyes of the industry?
– Instant liquidity: As soon as a new coin is launched, it can be traded immediately – refreshing!
– Transparent pricing: The price is determined by the bonding curve and AMM algorithm, at least appearing fair and just on the surface.
– Maximized entertainment: Coin issuance, trading, liquidation – an all-inclusive service, like a crypto version of a “spa.”
In comparison, traditional PerpDEX seems a bit “out of touch with the real world.” Complex operations, sophisticated financial terms, and cold data panels seem to say, “Sorry, we only welcome professionals.”
3. PerpDEX’s dilemma: The troubles of being high-class
Existing PerpDEX, whether dYdX, Aevo’s off-chain matching and on-chain settlement, or Synfutures and GMX’s pure on-chain model, are essentially replicating CEX on the blockchain, thus facing some common problems:
– Oracle dependency: Due to insufficient depth and small liquidity scale, PerpDEX’s price discovery is not effective and relies on oracle price feeds as the effective price. This makes PerpDEX a paradise for arbitrageurs and can harm the interests of LP providers or market makers to some extent. In addition, hackers can exploit oracles to attack market maker funds. Chainlink and Pyth dominate the oracle market, and this high centralization brings potential systemic risks.
– Concerns about trading pair liquidity capacity: Compared to the traditional derivatives market with transactions reaching millions of dollars, PerpDEX’s trading pair liquidity capacity is still insufficient. This limitation directly hinders the participation of institutional investors and hinders the improvement of market depth.
– Complex liquidation mechanisms: Different platforms have significant differences in liquidation mechanisms, ranging from liquidation thresholds (ranging from 50% to 80%) to liquidation methods (partial vs. full) and liquidation rewards (ranging from 1% to 5%), lacking unified standards.
– Heavy operational costs: One major problem caused by the homogenization of CEX contract products is the tendency to fall into a “rat race.” CEX can afford to integrate industry resources with professional BD teams, professional community managers to divert buying demand, and professional market makers to provide liquidity and matching. DEX, on the other hand, often cannot afford these costs and can only rely on incentives or liquidity mining to achieve a cold start. But the result often leads to a waterfall-like decline in business data after airdrops.
4. The way to break the deadlock: What can PerpDEX learn from Pump.fun?
If you can’t beat them, join them. PerpDEX needs to shift its learning focus from CEX to http://Pump.fun.
a) Simplification is the key:
Why not make it as simple as tweeting to create perpetual contract trading pairs with just one click? PerpDEX needs to find a product mechanism that supports foolproof creation of new contract trading pairs, supports joint underwriting to provide LP, and supports active discovery of contract trading opportunities.
b) Innovating the AMM model:
Instead of sticking to xy=k, why not try something new? Dynamic fees, hybrid curve models – bring a smile to the LPs’ faces.
c) Adding social attributes:
Trading should also have a social circle! Share strategies, show off trades, engage in friendly banter – turning boring digital games into a social carnival.
d) Intelligent risk management:
Automated liquidation systems, cross-trading pair risk hedging – make risk control feel like playing a challenging game of Tetris.
e) Truly decentralized:
Reduce reliance on oracles and explore true on-chain price discovery mechanisms. Let the community truly empower itself, transforming from “passive price feeding” to “autonomous price discovery.”
5. Is the era of pure on-chain models coming?
In this innovation, pure on-chain models like SynFutures may have the last laugh. They inherently possess several advantages:
– Maximum transparency: All operations are on-chain, making cheating difficult.
SynFutures’ Oyster AMM model deploys the order book and AMM completely on-chain.
All trade pricing and matching logic are executed by smart contracts, verifiable by anyone.
The platform has had zero security incidents to date, verifying the security of a pure on-chain architecture.
– Seamless integration with the DeFi ecosystem: Unlimited combinations, boosting capital efficiency.
Through a single token-centered liquidity mechanism, LPs only need to provide a single currency.
Supports combinations with other DeFi protocols such as liquidity mining and yield aggregation.
– Huge innovation space: No constraints from the offline world, imagination is the only boundary.
The first to achieve permissionless listing, allowing anyone to create perpetual contract trading pairs.
Innovative mechanisms such as dynamic fees and marked prices effectively prevent market manipulation.
The continuously iterated Oyster AMM model demonstrates the innovative potential of a pure on-chain architecture.
– High degree of decentralization: Not afraid of “running away” because no one can run away.
All platform parameters and rules are executed by smart contracts, eliminating the possibility of human intervention.
All risk management processes, including liquidation, are automated, enhancing system reliability.
It will transition to DAO governance in the future, achieving true decentralized operation.
The future of PerpDEX lies not in simply imitating Pump.fun, but in creating a new paradigm that is both professional and fun, safe and exciting. It should be a combination of Bloomberg Terminal and TikTok, a perfect blend of Wall Street and Las Vegas.
In this new paradigm, everyone can become their own market maker, and every transaction becomes a social activity, while the entire platform becomes an endless financial carnival. This is the ultimate form that truly allows “trillions of derivatives trading to move onto the blockchain.” Of course, this path is bound to be challenging, with regulatory, technological, and user education challenges lying ahead.
These are some of my thoughts on the future of PerpDEX. Remember, this is not investment advice but a brainstorming session. In this crazy crypto world, always DYOR (do your own research). Whether you choose to be a wave maker or a surfer, make sure to fasten your seatbelt.
