Many think about dYdX as probably the most profitable Perp DEXs, and absolutely it’s. Nevertheless, it’s being challenged increasingly steadily than earlier than.
DeFi world is seeing technological iterations on daily basis, and no mission can relaxation on its first-mover benefits. Progressive 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 mission. Based in 2017, it makes use of the normal 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.
Not like different prime 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 learn to commerce very quick; the order e book design can present deeper liquidity and assist for superior order sorts.
Nevertheless, the order e book mannequin shouldn’t be 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 value of knowledge storage and on-chain computation which restricts the variety of tradable tokens. Even with steady upgrading, dYdX has been mired on 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 in the intervening time, MYX has turn out to be the quickest rising Perp DEX with its MPM (Matching Pool Mechanism) , hitting the $1B Each day Vol inside solely 39 days. As 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 fast buying and selling. This mechanism ensures good liquidity out there 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 option to steadiness the pursuits of each lengthy and quick sides and remedy the issue of long-term place imbalance.
In a balanced market, MYX’s MPM mechanism can reveal increased capital effectivity than conventional P2Pools. For the reason that MPM solely bears the online publicity of lengthy and quick positions, LPs bear much less threat. 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 in addition permits the platform to cut back buying and selling charges to as little as 1bps.
To deal with market imbalance scenario, 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 attributable to place fluctuations. On the similar time, MYX additionally employs an oracle machine to facilitate order matching. Counting on the off-chain computing functionality supplied by oracle machines, MYX customers can expertise comparable and even higher buying and selling expertise than CEXs.
As crypto market typically 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 probably 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 value（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 12 months, MYX launched “Mission Origin”, which continues to be underway, airdropping 200,000,000 tokens (20% of its complete token provide) to neighborhood members and supporters. It’s estimated that the third section of “Mission Origin” shall be stay very quickly.
With the steady, clean and environment friendly buying and selling expertise, MYX has attracted over 33,000 customers with a day by day buying and selling quantity of greater than $200 million shortly after its launch on Arbitrum in February this 12 months. Such a progress fee 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. Now we have little question MYX won’t solely deliver a brand-new buying and selling expertise to all Scroll ecosystem customers, but in addition proceed its speedy progress momentum.
The blue-eyed boy of worldwide capitals and prime VCs
MYX’s modern product and quick consumer progress fee attracted the eye of prime 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 prime VCs, MYX reached varied types of strategic cooperation with crypto gamers reminiscent of OKX, Izumi, zkPASS, Pyth, and so forth. to empower its ecosystem.
With the steady and clean buying and selling expertise supported by MPM, MYX is undoubtedly turning into a member of the “High Perp DEXs Membership”. It is rather like a compressed spring. When you make investments extra and wager extra on it, it would achieve extra kinetic power, silently retailer up its energy, and in the intervening time of launch, it would leap upward and multiply the funding you made in it, hovering into the sky.
