Perp DEX Sector

+-----------------------------------------------------------+
|                      PERP DEX                              |
+-----------------------------------------------------------+
|                                                           |
|   Perp is not new, timing is everything                   |
|                                                           |
|   Two types: AMM Perp vs CLOB Perp                        |
|   One impossible triangle to choose from                  |
|                                                           |
+-----------------------------------------------------------+

1/ Perp Sector Isn’t New

On-chain Perp existed as early as 2018, like Synthetix, MUX, PERP, not a new sector.

Due to historical reasons, many ways to implement contracts on-chain existed, but ultimately 2 major categories remained:

Type	Representative Projects	Mechanism
AMM Perp	Jupiter, Avantis, GMX	Oracle pricing, pool as counterparty
CLOB Perp	Hyperliquid, edgeX, Lighter, Aster	Order book matching, similar to CEX logic

2/ Impossible Triangle

Perp DEX has an impossible triangle, can only choose 2 of 3:

       New Asset Coverage
              /\
             /  \
            /    \
           /      \
          /________\
   Liquidity    Price
   Depth        Fairness

Project	Choice	Sacrifice
Hyperliquid	New assets + Liquidity depth	Risk control (XPL incident is feature not bug)
Jupiter	Liquidity depth + Price fairness	Asset coverage (only 3 trading pairs to date)
Most CLOB	New assets + Price fairness	Long-tail asset liquidity

3/ Why Hot Now

Previous Perp DEX weren’t bad, it’s a timing issue:

Timeline:
2020: $SNX pumped to blue chip
2021: DYDX airdrop amazed entire network
2023: GMX/GNS saved great bear market
2024: Hyperliquid trending

Why only remember Hyperliquid?
├── Post-23 new users don't know DeFi summer
├── Post-Luna collapse Western users have no Perp to use
├── SEC extremely unfriendly to DeFi
└── DeFi revival after Trump's rise

At this time no-KYC DeFi perp already rigid demand for Western users who can’t use Binance

4/ From CEX Development History See Perp DEX

Think why a CEX could go from 18-19 to now, then you’ll know what Perp DEX can succeed.

Core Task: Serve LPs, whales, capital depositors well

Listing pricing power is core competitiveness:

Turn air into real money through listings
Create whale groups around assets
Form market making/structured product APY opportunities

Today’s project party, tomorrow’s whale operator. Exchanges and project parties, whales are mutually bound relationship

5/ CLOB Challenge: War with Major Exchanges

Problem 1: No Capital Deposits

CLOB Mechanism Problems:
├── At most make strategy Vault
├── Depth entirely depends on market makers
├── Post-TGE market makers withdraw liquidity
├── Vault yields low, no TVL
└── Inevitably falls into "liquidity war"

Problem 2: Direct Competition

CLOB itself is direct competitor to CEX derivatives business, and has no-KYC advantage.

If viewed as “platform token” class competitor by major exchanges, might not list on major exchanges

6/ Breaking the Deadlock

To break deadlock only 2 methods:

Strategy	Method	Case
Dividend Model	Without major exchange, violently pump asset, rush into top 100 market cap, artificially create capital deposits	Bitget-BGB
Split Model	Make own ecosystem, have new asset pricing power, form major customer system	Hyperliquid-HYPE

This is why:

Must violently pump BGB
Hype, Aster must violently pump
Hype must choose Native Markets to make USDH

7/ AMM’s Different Path

AVNT is not Base’s Hyperliquid, it’s Base’s Jupiter

AMM Perp’s real power:

1. AMM has pricing power
   └── Low cost permissionless issuance
   └── Doesn't depend on market makers for pricing

2. Doesn't conflict with CEX
   └── Doesn't compete for order book depth and major customers
   └── JLP/GLP is highest yield-bearing asset on-chain
   └── Complements CEX asset management departments

Binance Listing Data:

Orderbook class: 3 ($INJ $DYDX $AEVO)
AMM Perp: 5 ($GMX $GNS $AVNT $SNX $PERP)

Considering CLOB quantity far exceeds AMM, this ratio speaks volumes

8/ Points Farming Strategy

If haven’t committed yet, think about two questions:

Is there direct interest conflict with top exchanges?
Have ability to solve capital deposits and pricing power without major exchange liquidity?

Choose Orderbook First Choice:

Obtain public chain ecosystem level funding (like Sui, Monad)
Influential exchange system, institutions or individual public domain traffic support

Choose AMM First Choice:

Chains with asset pricing operation capability (Sui, Solana, Base)
Current sector leader hasn’t obtained Binance Futures or above results
JLP/GLP class assets TVL largest

9/ Potential Projects

Project	Logic
Ethena Ethereal	Binance/Ethena dual system strategic importance
BasedApp	Hyperliquid frontend + HypeEVM launchpad
Phantom	Main wallet token issuance cycle possibility

Core Formula

Perp DEX Competitiveness = Listing Pricing Power × Capital Deposit Capability

Impossible Triangle:
├── New asset coverage
├── Liquidity depth
└── Price fairness
(Can only choose 2 of 3)

CLOB vs AMM:
├── CLOB: War with major exchanges, needs self-built ecosystem
└── AMM: Harmony with major exchanges, complementary relationship

Points Farming Decision:
├── Interest conflict check
├── Capital deposit capability assessment
└── Pricing power path

Gambling my friend, continuous gambling, and gambling in Shandong

Next: BSC On-Chain Strategy