Taking stock of the data of the decentralized derivatives trading platform, can Layer 2 and token incentives rejuvenate rare users?

特邀专栏作者

2021-03-12 10:29 (UTC+8)

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Decentralized exchanges such as Uniswap and Sushiswap have developed with the rise of DeFi last year, but in the field of derivatives, no projects have been used on a large scale.

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Decentralized exchanges such as Uniswap and Sushiswap have developed with the rise of DeFi last year, but in the field of derivatives, no projects have been used on a large scale.

Text | Edited by Jiang Haibo | Produced by Tong | PANews

Decentralized exchanges such as Uniswap and Sushiswap have developed with the rise of DeFi last year, but in the field of derivatives, no projects have been used on a large scale. This situation may be improved this year, and more projects have been supported by funds.

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dYdX

Founded in 2017, dYdX is a product of the same period as MakerDao, Aave and other leading DeFi protocols. At the end of 2017, it received investment from Chris Dixon of A16Z, Olaf Carlson-Wee of Polychain Capital, Brian Armstrong of Coinbase and others. dYdX is one of the few decentralized exchanges that insist on using the order book model. It adopts off-chain order books and on-chain settlement transactions. It is also one of the few DeFi protocols that have been in operation for several years. Projects that have not yet launched governance tokens . dYdX also includes three functions: lending, leveraged trading, and perpetual contracts. Margin trading has its own lending function. The funds deposited by users automatically form a fund pool. If there are insufficient funds during the transaction, they will be automatically borrowed and interest will be paid. It should be noted that currently dYdX’s leveraged trading is only friendly to users of large-amount transactions. If a single order is less than 20ETH, you can only choose to take the order, and you need to pay a higher order taker fee for small orders to make up for the gas cost.

Currently, dYdX’s perpetual contracts are running simultaneously on Layer 1 and Layer 2. Layer 2 adopts StarkWare’s second-layer solution and has started mainnet testing. Users can register with their own email addresses and Ethereum addresses. It is very possible to use it now to get airdrop rewards when dYdX issues coins. Over the past 3 months, funds locked in dYdX have risen from $45 million to $220 million.

Perpetual

Perpetual is a new type of perpetual contract exchange. In August 2020, it received investment from Alameda Research, Three Arrows Capital, CMS Holdings, Multicoin Capital, Zee Prime Capital, Binance Labs and other institutions. It is built on xDai (Ethereum side chain), a contract exchange driven by a virtual market maker (vAMM), and initially only supports USDC as collateral. vAMM also relies on the constant product formula to determine prices. Before users use it, they need to deposit USDC into the smart contract that stores real assets. When trading, virtual assets are minted in vAMM. If you use 100 USDC to open a long position with 10 leverage, you will mint 1000 vUSDC and put it into vAMM, but vAMM does not store real assets, it is just for the convenience of liquidation.

Injective

Injective Protocol is one of the first batch of projects incubated by Binance Lab, and it is also listed on Binance through Launchpad. The Injective protocol consists of three parts: the Injective chain built on Cosmos, as an Ethereum Layer 2 side chain solution, can extend Ethereum transactions to the Injective chain; the Injective derivatives trading protocol, users can build their own derivatives transactions; The Injective trading platform adopts the order book mode to match transactions, and the orders are stored on the chain and maintained by nodes. In addition to normal transactions, Injective also optimizes the transaction experience and uses a delayed random function to prevent front-running transactions. The Injective chain based on Cosmos can pass through IBC to products of other chains.

Kine

Kine combines DeFi's on-chain fund custody with the experience of centralized exchanges, adopts "on-chain pledge and off-chain transactions" and the "Peer to Pool" trading method promoted by Synthetix, trading users can have unlimited liquidity and zero slippage point. Liquidity providers add funds to form a fund pool and become counterparties to trading users. Liquidity providers will also share transaction fees and receive KINE token rewards. Because transactions in Kine happen off-chain, it is not very affected by the performance of the public chain. At present, Kine hopes to wait for the Layer 2 technology to mature first, and may launch Layer 2 in the second quarter.

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Opyn

options trading

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Hegic

Hegic solves the liquidity problem of option products through a liquidity pool. Although it does not have well-known institutional investors, it is also popular because of the promotion of YFI founder Andre Cronje. Andre once tweeted that the YFI machine gun pool is a single-currency non-destructive mining strategy, which is not conducive to the capital pool's income. In the future, Hegic's option strategy will be considered to help YFI obtain more income.

Currently, only BTC and ETH options are included in Hegic. Users can provide funds in Hegic to form a liquidity pool, and these funds will be used to automatically sell call and put options and become the counterparty of the buyer. Therefore, providing liquidity in Hegic will bear the risk of selling options and also enjoy the benefits of selling options.

Summarize

Compared with a year ago, there are now more decentralized derivatives agreements on the line, and the three major domestic exchanges have also deployed perpetual contract DEX. But the current number of users is very small, even the largest dYdX, only 79 people traded 279 times in the past 24 hours. This situation may improve when dYdX launches mining.

ETH

options

futures contract

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