dYdX

dydx

Since its debut, the DYDX token has substantially increased its utility across various critical areas such as Security, Staking, and Governance within the dYdX Chain, establishing itself as a fundamental asset in the ecosystem's infrastructure. As of now, approximately 149 million DYDX tokens, which constitute 14.9% of the total supply, are staked with 60 active Validators. This staking mechanism not only secures the network but also underpins the overall stability and reliability of the dYdX Chain. Rewarding Commitment: Staking Innovations The staking framework has proved beneficial, with over 20 million USDC distributed as staking rewards to more than 18,991 stakeholders who contribute to the network’s security. The governance aspect of the DYDX token has seen significant community engagement, with 55 governance proposals initiated to date. This reflects a robust participation rate and a strong commitment to decentralized decision-making processes. On October 26, 2023, following a favorable community vote, the dYdX Chain officially launched with the DYDX token. This development was a turning point for DYDX, which transitioned from a solely governance-based token to a multi-functional asset. The adoption of a Proof-of-Stake (PoS) model has fortified the dYdX Chain’s security. Staking DYDX tokens to Validators not only secures the network but also decentralizes the control, preventing potential vulnerabilities associated with centralized systems. The innovative staking reward mechanism introduced post-launch allocates 100% of the protocol's fees, mostly in USDC, directly to stakers. This system not only secures the network but also offers stakers practical financial benefits, reflecting a well-thought-out strategy to incentivize and reward community support. The dYdX Chain has generated over $120 billion in trading volume to date, with staking rewards showing notable increases particularly in the early months of 2024. This trend underscores the growing utility and attractiveness of the DYDX staking mechanism. Transitioning from the semi-centralized dYdX v3 on Ethereum to a fully decentralized and independent Layer 1 network marks a significant advancement in the protocol’s governance and operational autonomy. Recent governance changes have made it easier for community members to submit proposals, enhancing accessibility and encouraging more active participation in the network's governance. Bridging ethDYDX to DYDX A substantial portion of ethDYDX tokens has successfully migrated to the dYdX Chain, facilitated by an efficient and user-friendly bridging process. This transition supports the integration of the dYdX ecosystem and enhances its decentralization efforts. According to the latest data from Coingecko, the DYDX token has a total supply of 1 billion, with approximately 50% currently in circulation. This distribution highlights the widespread adoption and active use of DYDX within the dYdX ecosystem. The dYdX Chain continues to evolve, driven by community governance and enhanced by the multifunctional utility of the DYDX token, paving the way for a secure, decentralized, and dynamic future for digital asset trading. Don’t forget to like and share the story! Vested Interest Disclosure: This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYOR. Since its debut, the DYDX token has substantially increased its utility across various critical areas such as Security, Staking, and Governance within the dYdX Chain, establishing itself as a fundamental asset in the ecosystem's infrastructure. As of now, approximately 149 million DYDX tokens, which constitute 14.9% of the total supply, are staked with 60 active Validators. This staking mechanism not only secures the network but also underpins the overall stability and reliability of the dYdX Chain. Rewarding Commitment: Staking Innovations The staking framework has proved beneficial, with over 20 million USDC distributed as staking rewards to more than 18,991 stakeholders who contribute to the network’s security. The governance aspect of the DYDX token has seen significant community engagement, with 55 governance proposals initiated to date. This reflects a robust participation rate and a strong commitment to decentralized decision-making processes. governance aspect On October 26, 2023, following a favorable community vote, the dYdX Chain officially launched with the DYDX token. This development was a turning point for DYDX, which transitioned from a solely governance-based token to a multi-functional asset. The adoption of a Proof-of-Stake (PoS) model has fortified the dYdX Chain’s security. Staking DYDX tokens to Validators not only secures the network but also decentralizes the control, preventing potential vulnerabilities associated with centralized systems. The innovative staking reward mechanism introduced post-launch allocates 100% of the protocol's fees, mostly in USDC, directly to stakers. This system not only secures the network but also offers stakers practical financial benefits, reflecting a well-thought-out strategy to incentivize and reward community support. The dYdX Chain has generated over $120 billion in trading volume to date, with staking rewards showing notable increases particularly in the early months of 2024. This trend underscores the growing utility and attractiveness of the DYDX staking mechanism. Transitioning from the semi-centralized dYdX v3 on Ethereum to a fully decentralized and independent Layer 1 network marks a significant advancement in the protocol’s governance and operational autonomy. Recent governance changes have made it easier for community members to submit proposals, enhancing accessibility and encouraging more active participation in the network's governance. Bridging ethDYDX to DYDX A substantial portion of ethDYDX tokens has successfully migrated to the dYdX Chain, facilitated by an efficient and user-friendly bridging process. This transition supports the integration of the dYdX ecosystem and enhances its decentralization efforts. According to the latest data from Coingecko, the DYDX token has a total supply of 1 billion, with approximately 50% currently in circulation. This distribution highlights the widespread adoption and active use of DYDX within the dYdX ecosystem. latest data The dYdX Chain continues to evolve, driven by community governance and enhanced by the multifunctional utility of the DYDX token, paving the way for a secure, decentralized, and dynamic future for digital asset trading. Don’t forget to like and share the story! Vested Interest Disclosure: This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYOR. Vested Interest Disclosure: This author is an independent contributor publishing via our business blogging program . HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYOR. Vested Interest Disclosure: business blogging program

Inside the dYdX Chain: Exploring the Future of Cryptocurrency Governance

dYdX চেইনের ভিতরে: ক্রিপ্টোকারেন্সি গভর্নেন্সের ভবিষ্যত অন্বেষণ

Innerhalb der dYdX-Kette: Die Zukunft der Kryptowährungsverwaltung erkunden

Dentro de la cadena dYdX: explorando el futuro de la gobernanza de las criptomonedas

À l'intérieur de la chaîne dYdX : explorer l'avenir de la gouvernance des crypto-monnaies

dYdX चेन के अंदर: क्रिप्टोकरेंसी गवर्नेंस के भविष्य की खोज

dYdXチェーンの内部: 暗号通貨ガバナンスの未来を探る

dYdX 체인 내부: 암호화폐 거버넌스의 미래 탐구

Por dentro da cadeia dYdX: explorando o futuro da governança de criptomoedas

Внутри цепочки dYdX: исследование будущего управления криптовалютами

dydX Zincirinin İçinde: Kripto Para Birimi Yönetişiminin Geleceğini Keşfetmek

Bên trong chuỗi dYdX: Khám phá tương lai của quản trị tiền điện tử

dYdX 链内部：探索加密货币治理的未来

In the vibrant tapestry of the blockchain universe, few stories are as compelling as that of Karan Ambawani's journey to the forefront of decentralized finance (DeFi). As part of our "Behind the Startup" series, we delve into Karan's remarkable path from a curious researcher to a pivotal figure at the dYdX Foundation in India. His narrative is not just about navigating the complexities of blockchain technology but also about envisioning and contributing to the evolution of DeFi. Join us as Karan shares insights from his expedition through the realms of blockchain research, application, and community building, illuminating the ways in which dYdX is reshaping the financial landscape. Redefining Trading: Karan Ambawani’s Vision for a Decentralized, Inclusive Financial World with dYdX Ishan Pandey:  Hi Karan, great to have you here for our "Behind the Startup" series. Please tell us about your journey and entry into the blockchain space. Thank you for having me. My journey with blockchain technology has been nothing short of exhilarating. At the helm of the dYdX Foundation in India, I've navigated through various facets of this dynamic industry. Beginning as a curious researcher, I quickly found myself captivated by the immense potential of blockchain. This led to roles in building and strategizing for DeFi protocols, where I discovered the power of decentralized finance in reshaping our financial landscape. My current focus is on nurturing our ecosystem, ensuring that it's not just about offering cutting-edge products, but also about fostering a community that is well-informed, engaged, and actively contributing to our protocol's governance and evolution. Karan Ambawani: Ishan Pandey: How did you transition from theoretical research to practical applications? Karan Ambawani: I embarked on my blockchain journey back in 2016, intrigued by the promise of crypto assets and their transformative potential. My early days were spent dissecting the intricacies of blockchains like Ethereum, which opened doors to a deeper understanding of this technology's impact. Joining ConsenSys in India was a pivotal moment, marking my transition from theoretical research to practical applications. There, I worked on a diverse range of blockchain applications, both private and public. Collaborating with top-tier enterprise clients and public organizations, I explored use cases spanning supply chain enhancements, land registry processes, and certification systems. This journey honed my skills in strategizing blockchain solutions that could revolutionize traditional business models. Ishan Pandey: Can you provide an overview of dYdX and highlight its distinguishing features that set it apart from other exchanges in the market? Karan Ambawani: dYdX protocol has been a trailblazer in the DeFi space . The platform's evolution is a testament to our commitment to innovation and user-centric design. The product was initially built on Ethereum Layer 1, scaled to Layer 2 after the rapid growth post DeFi summer in 2020, and now making strides on its own app chain ‘dYdX Chain’ on Cosmos. This journey underlines dYdX’s focus on trading perpetual derivatives in a decentralized manner. What sets dYdX Chain apart in the bustling DeFi marketplace is the unwavering dedication of the contributors to a non-custodial, fully decentralized trading experience. dYdX is a platform where users don't just transact but also have a stake in the governance and direction of the protocol. The global network of dYdX Chain validators, maintaining a distributed and decentralized order-book, underpins this, ensuring a secure, transparent, and efficient trading environment. Ishan Pandey: Could you provide further details regarding dYdX's journey in the DeFi sector, specifically delving into the platform's progression from its origins on Ethereum Layer 1 to an independent app chain on Cosmos? Karan Ambawani: Our shift to the Cosmos ecosystem was a strategic decision driven by a desire to push the boundaries of decentralization and enhance user experience. This transition has not just been about adopting a new technology but about embracing a philosophy that aligns with our vision. The proof-of-stake mechanism of Cosmos offers a more secure, decentralized trading environment. Our network of validators across the globe is not just a technical feature; it's a representation of our commitment to building a platform that is resilient, inclusive, and accessible to traders worldwide. Ishan Pandey: How does dYdX approach security and risk management? Karan Ambawani: In the rapidly evolving blockchain landscape, security remains a paramount concern. At dYdX, we approach this challenge proactively. dYdX Trading, the development team behind dYdX v4 multi-pronged strategy includes open-sourcing the protocol code, thereby inviting the community to scrutinize and contribute to the platform's security. Rigorous audits ensure that the systems withstand the evolving threats. Furthermore, dYdX is running a that serves as a beacon, attracting the brightest minds to help fortify dYdX Chain defenses. This holistic approach to security is not just about safeguarding assets; it's about building trust and reliability in dYdX Chain and the product ecosystem. bug bounty program Ishan Pandey: How does dYdX aim to not just grow but become an integral part of the unique blockchain ecosystems MENA and INDIA  regions? Karan Ambawani: Our expansion strategy in regions like MENA and India is tailored to their unique landscapes. In India, our focus extends beyond product deployment to nurturing a well-informed community by educating them to navigate more effectively and contribute more actively in the DeFi and DAO space. We have collaborated with local organization and ecosystem partners including T-Hub incubator to offer a DeFi education program to fintech founders and educators, did a research on the State of DeFi in India with GravityX Capital and recently published an in depth report on a comparative analysis on traditional finance vs decentralized finance with Hashed Emergent. In the MENA region, our strategy pivots towards institutional trading opportunities, along with developing content that resonates with the local community. Our aim is not just to grow in these markets but to become  an integral part of their blockchain ecosystems, contributing to and learning from their unique dynamics.\ Ishan Pandey: Can you elaborate on specific initiatives or programs that empower and engage members of the dYdX community? Karan Ambawani: At dYdX, we view our community as the heart of our protocol. Our members play diverse roles – from asset holders to governance participants, each bringing unique value. We strive to understand their motivations and needs, providing them with resources, education, and opportunities to engage deeply with our protocol. This isn’t just about protocol growth; it's about building a community that is empowered, informed, and actively shaping the future of decentralized finance. Ishan Pandey: Looking ahead, what specific objectives and strategic initiatives does dYdX plan to implement to strengthen its standing as a foremost decentralized exchange in 2024? Karan Ambwani: As we continue to evolve and grow, our journey from Ethereum to Cosmos is marked by enthusiastic community support and engagement. The community voted to activate full-trading on dYdX Chain less than 3 weeks ago and it has seen over $3B in volumes,, a testament to community-driven growth strategies. Looking ahead, we are poised to further cement our position as a leading decentralized exchange. We will continue to innovate, engage with our community, and navigate the unique opportunities and challenges of each market we operate in. Our goal is to not just grow but to lead the way in redefining the future of decentralized trading and finance. Don’t forget to like and share the story! Vested Interest Disclosure: This author is an independent contributor publishing via our brand-as-author program. Be it through direct compensation, media partnerships, or networking, the author has a vested interest in the company/ies mentioned in this story. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYOR

dYdX Unveiled: The Revolutionary Platform Changing the Face of Decentralized Trading

In a world teetering on the brink of financial transformation, dYdX doesn't just follow the narrative, it crafts it. Its story is one of audacity, a symphony of innovation where each note resonates with purpose and foresight. Decentralization Defined: dYdX's Odyssey in Pioneering the Future of Finance In the evolving landscape of digital finance, few ecosystems have shown as much promise and resilience as dYdX. With its recent release of the , offers a comprehensive dive into its visionary journey, navigating tumultuous market conditions, and its relentless pursuit of decentralized leadership. Let's delve into the key takeaways that make dYdX a beacon of innovation and leadership in the decentralized finance realm. 2023 Semi-Annual Ecosystem Report dYdX Foundation 1. Resilience Amidst Challenges Navigating the unpredictable waters of the crypto-market is no mean feat. Many projects flounder when faced with adversity. However, the dYdX ecosystem stands apart. Despite facing challenging market conditions, the foundation has not only survived but thrived. The ability to adapt, pivot, and innovate in the face of adversity is a hallmark of true leadership. It's not just about survival, though. The achievements in 2023 are a testament to its commitment to growth and innovation. From fostering community development to supporting decentralized governance, dYdX has showcased that with a clear vision and dedicated effort, challenges can be turned into stepping stones for success. dYdX Foundation's 2. Governance: A Community-Driven Approach The decentralized world thrives on community participation. Governance isn't just a buzzword for dYdX; it's the very core of its operations. With 14 governance proposals in 2023 alone and an average of 458 unique addresses participating in each vote, dYdX is setting a gold standard in decentralized governance. Decentralization doesn't mean anarchy. It means empowering every stakeholder to have a say in the ecosystem's direction. dYdX's approach to governance, with both off-chain Snapshot votes and on-chain votes, ensures a balanced, inclusive, and transparent decision-making process, epitomizing democratic leadership in the digital age. 3. The Potential of the dYdX Chain The potential launch of the "dYdX Chain" on the mainnet is more than just an upgrade; it's a leap towards the future. The report highlights the critical role the $DYDX token might play in securing and governing this new chain, emphasizing the importance of community involvement in its success. Moreover, with 57+ validators participating in dYdX Trading’s v4 Public Testnet #2 and over 2.9 million transactions, the foundation is not just aiming for innovation but also ensuring robustness and security. The dYdX Chain's anticipation underscores the foundation's commitment to pushing the boundaries of what's possible in decentralized finance. 4. Community: The Heartbeat of dYdX The numbers are impressive: Over 55,400 quests claimed, 131 POAP events, and 5,708 POAP holders. But beyond the numbers lies a story of a thriving, engaged, and passionate community. dYdX understands that its true strength lies in its community, and its efforts to engage them, from dYdX Quests to Proof of Attendance Protocols, showcase a deep understanding of community-centric leadership. In an era where many projects chase after quick profits and short-term gains, dYdX's focus on nurturing its community and fostering long-term relationships stands out as a beacon of visionary leadership. Ending Remarks The dYdX 2023 Semi-Annual Ecosystem Report isn't just a summary of achievements; it's a testament to what visionary leadership, combined with community-driven focus, can achieve. As dYdX continues to expand its footprint in Cosmos, DeFi, and the broader blockchain ecosystem, one thing is clear: With its commitment to innovation, governance, and community, dYdX is not just leading the decentralized revolution; it's shaping its future. Image credits: . Mariia Shalabaieva Vested Interest Disclosure: This author is an independent contributor publishing via our brand-as-author program. Be it through direct compensation, media partnerships, or networking, the author has a vested interest in the company/ies mentioned in this story. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYOR

The dYdX Revolution: Navigating Challenges and Leading the Decentralized Future

According to the rankings at 2nd, November, the top address has earned approximately $1.6 million in the past 24 hours, with a return rate of 1.82%. According to the data on the dYdX trading rewards panel, the corresponding full address is 0x90d3020c166d7d62361639ea1cb2d8abed38015e which owns 1.718% of the total transaction score. Checking this address on Etherscan, you can see that this address deposited nearly 85 million USDC on dYdX L2 within a week, and transferred 200,000 DYDX from Binance two days ago. Digging deeper, you can see that it holds half of the Media Network Token supply (Solana project) in the total amount of ERC20 tokens. And it seems to have performed the official cross-chain transaction of SOL-ETH at that time, Media Network is a peer-to-peer content distribution network (https://media.network/) on Solana. The main partner is Alameda Research, and its token is mainly listed on FTX. Based on this, we can that this address is definitely related to Alameda, here are some more details. speculate 1. With 85 million USDC and 200,000 DYDX deposited in a week, such funds are likely to come from a professional trading institution. 2. The recent SOL-USD trading volume on dYdX has surged, becoming the third-largest trading pair after BTC-USD and ETH-USD. 3. It is inferred from the fee discount rules of DYDX tokens that this address has taken less than a week to reach a volume of 50m-200m USD on dYdX. 4. This address used to have a large amount of SUSHI, more than 3% of the total. In summary, from its holding information, on-chain behaviors, and trading performance on dYdX, it can be inferred that Alameda Research started to trade on dYdX and earned a lot. At the same time, it also holds a huge bag of DYDX tokens for fee discounts. As of now, Alameda Research expects to receive approximately 65,000 DYDX trading rewards in the current Epoch.

SBF started trading on dYdX, ranked first in the 24-hour PNL list, and bought 200,000 DYDX

Discovering the Opportunities and Threats of MiCA Regulations on Crypto Dark Pools in the EU 

Photo by Pierre Borthiry - Peiobty Leveraged trading has attracted both experienced traders looking to maximize their potential returns and novice traders seeking to enter the financial markets with limited capital. The appeal lies in the potential for significant gains within short periods. Grand View Research stated that the global leveraged trading market was and is expected to reach $6.8 trillion by 2028, growing at a compound annual growth rate (CAGR) of 5.8% during the forecast period. valued at approximately $4.4 trillion in 2020 This rise could be credited to online trading platforms. These platforms offer leveraged products such as contracts for difference (CFDs), futures, and margin trading, which enables traders to speculate on various financial instruments with leverage. Leveraged trading explained Leveraged trading is a strategy that allows traders to gain amplified exposure to an asset using borrowed funds. It involves using leverage, which is essentially trading with borrowed capital to increase potential profits. In leveraged trading, traders can open positions that exceed their available capital, allowing them to control larger positions than with traditional trading. This can lead to higher potential returns, but it also comes with increased risks, as losses can be magnified as well. What is decentralized leveraged trading? Decentralized leveraged trading, on the other hand, refers to leveraged trading conducted on decentralized platforms within the realm of decentralized finance (DeFi). DeFi leveraged trading platforms aim to provide users with the ability to trade leveraged positions in a decentralized, permissionless, and non-custodial manner. These platforms are typically built on blockchain networks and operate using smart contracts. The main difference between traditional leveraged trading and decentralized leveraged trading lies in the underlying infrastructure and the level of control and ownership. Traditional leveraged trading often takes place on centralized exchanges, where users deposit their funds and trade on margin provided by the exchange. The exchange acts as a central authority, managing the borrowing and lending of funds and maintaining custody of the assets. In contrast, decentralized leveraged trading platforms operate through smart contracts that execute predefined rules and enable peer-to-peer trading directly on the blockchain. Users keep full control over their funds when interacting with smart contracts, removing intermediaries and the need for trust in a centralized entity. This means that they can trade leveraged positions without relying on a centralized exchange. There are even more advantages offered by decentralized leveraged trading platforms. Some of which can be access to a wider range of assets and lower fees. They also offer the ability to vote for the platform's decisions through token ownership. Do keep in mind that decentralized leveraged trading platforms may face challenges with regard to liquidity, scalability, and smart contract security, which require careful consideration and evaluation by users. Why people are leveraging their trades: The Benefits and Risks of Leveraged Trading We can find the answer to this question by evaluating its benefits. Let’s assume that you have $1,000 and decide to try leveraged trading with a leverage ratio of 5x. , the price of the asset you're trading increases, resulting in a profitable trade. In the event of a successful Trade : You use your $1,000 to open a leveraged position worth $5,000 (5x leverage). Initial Position The price of the asset increases by 10% while your position is open. Since the price increased by 10%, your position’s value becomes $5,500 ($5,000 initial investment + 10% increase), making your profit $500. : To calculate the ROI, we can divide the profit by the initial investment: $500 / $1,000 = 0.5 or 50%. So, your ROI here would be 50%. Return on Investment In the event of an unsuccessful Trade Now, let's consider a scenario where the price of the asset decreases, resulting in a loss. : Again, you open a leveraged position worth $5,000 with your $1,000 (5x leverage). Initial Position : The price of the asset decreases by 5% during your position. Price Decrease : With a 5% decrease, your position’s value becomes $4,750 (initial position of $5,000 - 5% decrease). Therefore, you lost $250 ($5,000 - $4,750). Calculating a Loss : To calculate the ROI, divide the loss by your initial investment: $250 / $1,000 = 0.25 or 25%. So, your ROI in this scenario is -25% (a negative return indicating a loss). ROI Once we’ve calculated the profits from a successful trade, it’s clear why the instrument is appealing. Additionally, this example assumes a linear price movement for simplicity, but in reality, market fluctuations are more complex and unpredictable. : Leveraged trading can magnify both gains and losses. While higher leverage ratios offer the potential for larger profits, they also increase the risk of significant losses. You should always exercise caution, set appropriate stop-loss orders, and have a solid risk management strategy in place to protect their capital. Important disclaimer Some of the Decentralized Leveraged Trading Platforms I’ve Tested There is an abundance of shady platforms on the market, so I’ve tested a few. , this list is in no particular order and you should before choosing a platform, as And a quick disclaimer always DYOR this list serves as a starting point and not as a recommendation. dYdX dYdX is a leading decentralized trading platform that offers margin trading and perpetual contracts with leverage. It operates on the Ethereum blockchain and provides up to 10x leverage for various cryptoassets. dYdX offers a user-friendly interface, deep liquidity, and non-custodial trading, ensuring control and security over user funds. Gravix Gravix is a decentralized trading platform that allows users to trade cryptocurrencies, stocks and forex with leverage via long and short positions on both Venom and Everscale blockchains. At the core of the Gravix protocol are liquidity providers who act as market makers for all users. They allow traders to open positions on any asset at the current market price with a low spread. This means that traders can quickly and easily buy or sell any asset on the platform. It also connects to both Everscale and Venom (which is the first blockchain to be licensed by the Abu Dhabi Global Market (ADGM). Perpetual Protocol Perpetual Protocol is a decentralized exchange protocol designed for leveraged trading of perpetual contracts. Built on Ethereum, it supports up to 20x leverage on multiple cryptocurrencies. The protocol utilizes an automated market maker (AMM) model to ensure liquidity and allows users to trade perpetual contracts without the need for counterparties. Leverj Leverj is a decentralized leveraged trading platform that prioritizes speed, security, and transparency. Operating on the Ethereum network, it offers leveraged trading on various cryptoassets. Leverj combines off-chain order matching with on-chain settlement, enabling fast and low-cost trading experiences. The platform's Proof of High Leverage (PoHL) mechanism rewards users who maintain high leverage positions. What now? When you’re considering any leveraged trading platform, make sure you’re doing your due diligence. Evaluate factors like security, liquidity, fees, supported assets, and the platform's reputation. This list can act as a starting point, but it's crucial that you choose a platform that aligns with your specific trading requirements and risk tolerance.

The Rise of Leveraged Trading: Exploring Decentralized Alternatives

**LONDON, UK, October 17th, 2024/Chainwire/--**A dynamic shift is unfolding in the world of crypto-powered competitions as MetaWin, known for its thrilling Web3 contests, opens its doors to a new community. In a bold new move, MetaWin is embracing the $dydx token, bringing together the excitement of decentralized trading with high-stakes entertainment. MetaWin’s $DYDX integration offers a compelling opportunity for $DYDX holders to participate in a unique prize draw as part of the launch. The platform is offering a 5,000 DYDX token prize pool, valued at approximately $4,600, which will be awarded to eligible participants through a free-entry draw. To qualify, participants must hold a minimum of 100 DYDX tokens in their wallets. Launch Prize Draw Details What: A chance to win from a 5,000 DYDX token pool (~$4,600) How to Enter: Hold a minimum of 100 DYDX tokens in a compatible wallet Cost: Free entry Purpose: To celebrate DYDX’s acceptance on MetaWin Users can click here to enter the 5,000 DYDX draw for free. Rebecca Hanwell, Operations Manager of MetaWin, shares her excitement: “Decentralized platforms are the future, and by integrating $DYDX, we’re aligning our product with that vision. It’s a perfect fit. We’re thrilled to offer traders new ways to win, all within an ecosystem they know and trust.” Beyond the prize draw, MetaWin offers features designed with Web3 users in mind, including Web3 wallet connectivity, instant withdrawals, L2 support, and seamless swaps in and out. These features aim to enhance the user experience, making it easy for participants to engage with contests, participate in prize draws, and seamlessly manage their tokens. MetaWin has hinted at upcoming competitions, giveaways, and new prize pools, signaling further engagement opportunities for traders and Web3 enthusiasts. As the platform expands, MetaWin remains focused on delivering decentralized entertainment options that resonate with the evolving needs of the crypto community. About MetaWin MetaWin stands as the premier platform for on-chain prize competitions and instant win games, offering a diverse array of entertaining challenges for users. Through the utilisation of cutting-edge blockchain technology, MetaWin ensures a transparent, fair, and secure gaming environment, making it the preferred destination for blockchain enthusiasts and gamers alike. At the forefront of Web3 innovation, MetaWin is supported by a robust community of 250,000 connected wallets. Renowned for its ability to craft impactful digital experiences, MetaWin remains dedicated to pushing the boundaries of the cryptocurrency landscape. For more information, users can visit MetaWin.com. Users can follow MetaWin on social media and join MetaWin’s community: X| Instagram| Telegram | Discord Contact Metawin Metawin pr@metawin.inc This story was distributed as a release by Chainwire under HackerNoon’s Business Blogging Program. Learn more about the program here. **LONDON, UK, October 17th, 2024/Chainwire/--**A dynamic shift is unfolding in the world of crypto-powered competitions as MetaWin, known for its thrilling Web3 contests, opens its doors to a new community. In a bold new move, MetaWin is embracing the $dydx token, bringing together the excitement of decentralized trading with high-stakes entertainment. MetaWin, MetaWin, MetaWin’s $DYDX integration offers a compelling opportunity for $DYDX holders to participate in a unique prize draw as part of the launch. The platform is offering a 5,000 DYDX token prize pool, valued at approximately $4,600, which will be awarded to eligible participants through a free-entry draw. To qualify, participants must hold a minimum of 100 DYDX tokens in their wallets. 5,000 DYDX 5,000 DYDX Launch Prize Draw Details What: A chance to win from a 5,000 DYDX token pool (~$4,600) How to Enter: Hold a minimum of 100 DYDX tokens in a compatible wallet Cost: Free entry Purpose: To celebrate DYDX’s acceptance on MetaWin Users can click here to enter the 5,000 DYDX draw for free. Users can click here to enter the 5,000 DYDX draw for free. Users can click here to enter the 5,000 DYDX draw for free. Rebecca Hanwell, Operations Manager of MetaWin, shares her excitement: “Decentralized platforms are the future, and by integrating $DYDX, we’re aligning our product with that vision. It’s a perfect fit. We’re thrilled to offer traders new ways to win, all within an ecosystem they know and trust.” Rebecca Hanwell, Operations Manager of MetaWin, shares her excitement: “Decentralized platforms are the future, and by integrating $DYDX, we’re aligning our product with that vision. It’s a perfect fit. We’re thrilled to offer traders new ways to win, all within an ecosystem they know and trust.” Beyond the prize draw, MetaWin offers features designed with Web3 users in mind, including Web3 wallet connectivity, instant withdrawals, L2 support, and seamless swaps in and out. These features aim to enhance the user experience, making it easy for participants to engage with contests, participate in prize draws, and seamlessly manage their tokens. MetaWin has hinted at upcoming competitions, giveaways, and new prize pools, signaling further engagement opportunities for traders and Web3 enthusiasts. As the platform expands, MetaWin remains focused on delivering decentralized entertainment options that resonate with the evolving needs of the crypto community. About MetaWin MetaWin stands as the premier platform for on-chain prize competitions and instant win games, offering a diverse array of entertaining challenges for users. Through the utilisation of cutting-edge blockchain technology, MetaWin ensures a transparent, fair, and secure gaming environment, making it the preferred destination for blockchain enthusiasts and gamers alike. At the forefront of Web3 innovation, MetaWin is supported by a robust community of 250,000 connected wallets. Renowned for its ability to craft impactful digital experiences, MetaWin remains dedicated to pushing the boundaries of the cryptocurrency landscape. For more information, users can visit MetaWin.com . Users can follow MetaWin on social media and join MetaWin’s community: MetaWin.com MetaWin.com X | Instagram | Telegram | Discord X X Instagram Instagram Telegram Telegram Discord Discord Contact Metawin Metawin pr@metawin.inc This story was distributed as a release by Chainwire under HackerNoon’s Business Blogging Program. Learn more about the program here. This story was distributed as a release by Chainwire under HackerNoon’s Business Blogging Program. Learn more about the program here . here here

MetaWin Integrates $DYDX, Launches New Prize Draw with 5,000 DYDX Tokens For Eligible Participants

MetaWin integra $DYDX y lanza un nuevo sorteo de premios con 5000 tokens DYDX para participantes elegibles

MetaWin-ը միավորում է $DYDX-ը և մեկնարկում է նոր մրցանակային խաղարկություն 5000 DYDX նշաններով իրավասու մասնակիցների համար

MetaWin Integrasikan $DYDX, Luncurkan Undian Berhadiah Baru dengan 5.000 Token DYDX untuk Peserta yang Memenuhi Syarat

MetaWin משלבת $DYDX, משיקה הגרלת פרס חדשה עם 5,000 אסימוני DYDX למשתתפים מתאימים

MetaWin が $DYDX を統合し、対象参加者に 5,000 DYDX トークンが当たる新しい抽選を開始

MetaWin integrē $DYDX, uzsāk jaunu balvu izlozi ar 5000 DYDX žetoniem atbilstošajiem dalībniekiem

MetaWin $DYDX एकीकृत गर्दछ, योग्य सहभागीहरूका लागि 5,000 DYDX टोकनहरूको साथ नयाँ पुरस्कार ड्र लन्च गर्दछ

MetaWin интегрирует $DYDX и запускает новый розыгрыш призов с 5000 токенов DYDX для участников, соответствующих требованиям

MetaWin waxay isku daraysaa $DYDX, waxay bilawday barbardhac cusub oo ay la gashay 5,000 DYDX Token ee ka qaybqaatayaasha xaqa u leh

MetaWin ผสานรวม $DYDX เปิดตัวการจับรางวัลใหม่ด้วยโทเค็น DYDX จำนวน 5,000 โทเค็นสำหรับผู้เข้าร่วมที่มีสิทธิ์

MetaWin Yi Hlanganisa $DYDX, Yi Sungula Ntlangu Lowuntshwa wa Masagwadi hi 5,000 wa Tithokini ta DYDX Eka Vatekaxiave lava Fanelekaka

MetaWin 集成 $DYDX，推出新抽奖活动，符合条件的参与者可赢取 5,000 个 DYDX 代币

Unlocking Digital Wealth: Navigating the Crypto Seas with Innovative Trading Platform Crypto trading is emerging as a transformative facet of the financial landscape, providing individuals with unprecedented opportunities to engage in decentralized digital asset markets. At its core, crypto trading involves buying and selling cryptocurrencies like Bitcoin, Ethereum, and others with the aim of capitalizing on market fluctuations. Trading platforms, the virtual arenas where these transactions unfold, serve as the gateway to the crypto world. These platforms offer users the tools and interfaces needed to execute trades, analyze market trends, and manage their portfolios. With features ranging from real-time price charts to advanced order types, trading platforms empower both novice and experienced traders to navigate the complexities of the crypto market and participate in this ever-evolving ecosystem. As the crypto space continues to expand, trading platforms play a pivotal role in democratizing access to digital assets and shaping the future of decentralized finance. In a groundbreaking move that marks a pivotal moment in the crypto trading sphere, the subDAO proudly unveils the Full Trading stage on the dYdX Chain. This announcement brings not only new and enhanced trading rewards but also introduces a game-changing 6-month Launch Incentive Program backed by Chaos Labs. Moreover, Validators and Stakers will continue to enjoy a 100% share of protocol fees, setting the stage for a period of unprecedented growth and innovation. dYdX Operations Unlocking the Power of Full Trading The dYdX community, a driving force behind this evolution, voted in favor of transitioning from the . As a result, users now have access to fully operational BTC-USD, ETH-USD, SOL-USD, and LINK-USD markets, with more exciting additions anticipated in the coming weeks. Beta Stage to Full Trading Since the Beta Stage launch, the dYdX platform has generated a remarkable 1.86 million in total trading volume, facilitating over 14,000 trades and distributing over $1,080 USDC to Validators and Stakers. The move to Full Trading represents a significant leap forward, promising a more immersive and rewarding experience for users. Chaos Lab’s Visionary 6-Month Launch Incentive Program The strategic alliance with Chaos Labs has birthed a visionary 6-month Launch Incentive Program, injecting $20 million worth of DYDX tokens into the ecosystem. Early adopters of the dYdX Chain will be handsomely rewarded for their participation, with users qualifying for rewards based on specific actions performed on the dYdX Chain. To ensure fair play, Chaos Labs will implement wash trading modules to detect and discourage negative or abusive behaviors. Users can track and claim their rewards through the user-friendly dYdX Chain Rewards Leadership Portal. Community Empowerment through Governance Every distribution of DYDX rewards under the 6-month Launch Incentives Program is subject to approval from the dYdX Community through a governance proposal. This democratic approach underscores the commitment to community empowerment and ensures that the ecosystem evolves in tandem with the needs and desires of its users. Seamless Migration from Ethereum to dYdX Chain For ethDYDX token holders looking to make the leap from Ethereum to the dYdX Chain, a seamless, permissionless bridge named the wethDYDX Smart Contract facilitates the migration. Over 437 million ethDYDX tokens have already crossed the bridge, with 16.44 million DYDX tokens staked to the dYdX Chain, establishing a robust foundation for future growth. Evolution through Alpha and Beta Stages The Full Trading Stage is the culmination of a meticulous journey through the Alpha and Beta Stages, where the focus was on ensuring the security, stability, and functionality of the platform. The Alpha Stage prioritized network stability and security, while the Beta Stage introduced a protocol front-end, an indexer, and 33 unique markets, laying the groundwork for the Full Trading experience. The launch of Full Trading on the dYdX Chain is not just a milestone; it's a testament to the relentless pursuit of innovation, community engagement, and user-centric design. As the dYdX community embraces this new era, the future of crypto trading has never looked more promising. Get ready to embark on a trading journey where rewards, community, and cutting-edge technology converge to redefine the very essence of digital asset exchange. The revolution is here, and it's happening on the dYdX Chain. For more latest updates read . Ops subDAO Don’t forget to like and share the story! : Vested Interest Disclosure This author is an independent contributor publishing via our . Be it through direct compensation, media partnerships, or networking, the author has a vested interest in the company/ies mentioned in this story. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYOR brand-as-author program

Revolutionizing Crypto Trading: dYdX Chain Launches Trading Platform with Lucrative Rewards

বিপ্লবী ক্রিপ্টো ট্রেডিং: dYdX চেইন লাভজনক পুরস্কারের সাথে ট্রেডিং প্ল্যাটফর্ম চালু করেছে

Revolutionierung des Krypto-Handels: dYdX Chain startet Handelsplattform mit lukrativen Belohnungen

Revolucionando el comercio de criptomonedas: dYdX Chain lanza una plataforma comercial con recompensas lucrativas

Révolutionner le trading crypto : dYdX Chain lance une plateforme de trading avec des récompenses lucratives

क्रिप्टो ट्रेडिंग में क्रांतिकारी बदलाव: dYdX चेन ने आकर्षक पुरस्कारों के साथ ट्रेडिंग प्लेटफॉर्म लॉन्च किया

仮想通貨取引に革命を起こす: dYdX Chain が有利な報酬を提供する取引プラットフォームを開始

암호화폐 거래 혁명: dYdX Chain, 수익성 있는 보상을 제공하는 거래 플랫폼 출시

Revolucionando o comércio de criptografia: dYdX Chain lança plataforma de negociação com recompensas lucrativas

Революция в криптотрейдинге: сеть dYdX запускает торговую платформу с прибыльными вознаграждениями

Kripto Ticaretinde Devrim Yaratıyor: dYdX Chain, Kazançlı Ödüllerle Ticaret Platformunu Başlatıyor

Cách mạng hóa giao dịch tiền điện tử: Chuỗi dYdX ra mắt nền tảng giao dịch với phần thưởng hấp dẫn

彻底改变加密货币交易：dYdX Chain 推出奖励丰厚的交易平台

dYdX and just sent me this handy mail announcing a partnership with and their scalability engine, StarkEx. Antonio Juliano Zhuoxun Yin Brendan Chou Everett Hu StarkWare What this means is that dYdX’s fledgling perpetuals (and later: futures contracts) will be able to execute faster, cheaper, and with more leverage than before. In practicality, check out this code I wrote to consume some of their dydx-python package: Insert a private key, and you’ll see output akin to: Edit some of that code slightly, and you’ll see: What this means is that as dYdX adds more perpetuals and matching futures contracts to their lineup, we can allocate our equity in baskets matching how much % out of total % opportunity the funding rates allow us — while matching that against the futures premiums, and weighing which to enter and which to avoid as it might not be profitable. We can also enter into futures contracts to hedge against these positions, which will allow us to have a delta-neutral set of positions that are exposed only to funding rates and/or futures premiums — depending on the time of day :) Why is this important? It’ll be the first non-custodial solution I can exploit (well, I am indeed taking advantage of market conditions and %s of %s here…) — and I can even theoretically do so on-chain with a supporting tokenized asset that distributes winnings in the form of buy-n-burn (to appease regulators), reducing supply and increasing value of said token. Why are custodial solutions bad? Mt. Gox. No, really? With custodial solutions, you’re exposed to risk that that exchange or entity might go sour and run off with all your funds. Aren’t there risks inherent with smart contracts? Indeed, but I’d much rather trust audited technology over the word of the ultrarich. Does this strategy actually work? Check out my microfunds here on : FTX — Cryptocurrency Derivatives Exchange https://ftx.com/shareable-pnl/published/38012 https://ftx.com/shareable-pnl/published/38017 Interested? Comment on this article and sign up for yonder exchange here: https://ftx.com/#a=JaresFundingArbitrage Now, this has only been running about 2–3 hours and has yet to hit the 50x leverage threshold — sitting about 1.38x leverage. We can assume maybe 25x the hourly funding revenues, or just about $0.38 a day — on $16.13 balance, or 2.3% a day. Nearly risk-free. as we’re nearly perfectly hedged and the only risk here is the difference in price movements between a perp and it’s hedge that go against the funding’s or premium’s direction that everyone else is longing or shorting with us… Woot. UPDATE 11 minutes since finishing up this draft: We’re @ 1.41x lev, projecting daily and projecting @ 50x lev, we’d be $0.60 revenues/day, on $16.13 is 3.72%/day :D Onwards, to a smart contract DeFi token by yours truly near you once dYdX delivers on these wonderful promises… Previously published at https://medium.com/@jarettdunn/what-dydx-and-starkwares-partnership-means-for-defi-s-perps-future-s-e88612b860ef

What dYdX and StarkWare's Partnership Means for DeFi's Perpetuals & Future(s)

Since the introduction of Decentralized Exchanges (DEX) with EtherDelta in 2017, Decentralized Finance (DeFi) is reshaping financial markets, providing new alternatives to traditional financial systems. However, as DeFi matures and integrates with traditional finance (TradFi), critical challenges remain, most notably, the absence of a standardized interest rate mechanism for crypto assets. Unlike traditional financial markets, where interest rates influence asset pricing and risk assessment, crypto markets lack a natural cost-of-carry framework. This article explores the evolving DeFi landscape, examining how existing trading solutions—ranging from centralized exchanges (CEXs) and Automated Market Makers (AMMs) to perpetual futures—attempt to address these structural gaps. It then explains how Perpetual Constant Maturity Options (PCMOs), already introduced by some initiatives like 1xMM, present a potential breakthrough in bridging DeFi with traditional financial frameworks. The DeFi landscape: a continuously evolving ecosystem disrupting traditional finance As DeFi continues to mature towards the integration of TradFI, the industry faces a persistent challenge: achieving an optimal balance between decentralization, efficiency, and user protection. The decentralized finance (DeFi) ecosystem has evolved into a diverse landscape of trading solutions, each presenting its own advantages and challenges. Centralized exchanges (CEXs), such as Binance and Deribit, offer high liquidity and ease of use but introduce counterparty risks, elevated fees, and centralized asset control. On the other hand, Automated Market Makers (AMMs), like Uniswap and Curve, facilitate permissionless trading yet struggle with issues such as impermanent loss and liquidity fragmentation, which Layer 2 solutions (like dYdX) aim to address. Yield farming platforms like Aave and Compound provide opportunities for passive income but often lack full transparency and necessitate over-collateralization, reducing capital efficiency. Meanwhile, decentralized perpetual futures platforms, including GMX and PERP, enable leveraged trading but expose users to significant volatility and short-term contract limitations Interest Rates: a major challenge for crypto assets Cryptocurrencies occupy a unique position in financial markets. While often perceived as “digital” currencies, their price behavior resembles that of commodities. They function as a hybrid between fiat currencies and precious metals — serving as a store of value akin to digital gold while also being a medium of exchange like fiat currencies. However, a key distinction sets them apart: the absence of intrinsic interest rates. In traditional finance, the cost of carrying an asset is typically assessed through interest rates, which also influence the pricing of futures contracts. For instance, in foreign exchange (FX) markets, the price of an FX futures contract incorporates interest rate differentials: However, when applied to cryptocurrencies, this model breaks down: Futures prices in crypto markets exhibit extreme volatility, frequently oscillating between positive and negative funding rates within seconds — akin to “volatile” commodities rather than fiat currencies Unlike traditional assets, cryptocurrencies do not have a natural risk-free interest rate, making it difficult to establish a standardized cost of carry. In most situations, Futures prices lead to significantly negative interest rates, if we apply the usual FX futures formula This absence of interest rates presents a fundamental challenge: there is no inherent mechanism to determine the cost of holding crypto assets over time. This gap complicates risk assessment and financial planning for individuals and institutions holding digital assets. Perpetual Futures: a proxy for opportunity cost that come with structural limitations Perpetual futures contracts provide continuous exposure to short-term futures prices while incorporating funding rates designed to approximate the cost of holding a position. The perpetual funding rate is determined by the difference between the theoretical weighted order book price of an asset and its spot market price (or an index representing its average spot price). This mechanism aims to balance market forces by incentivizing traders to take positions that align with market trends. While perpetual funding rates serve as a proxy for opportunity cost, they come with notable limitations: The order book is not a guaranteed predictor of future price movements, leading to scenarios where funding rates favor traders with profitable positions rather than offsetting their losses
The funding rate does not always reflect actual market price changes; it can remain at zero even during periods of high volatility
Investors in leveraged positions are exposed to substantial capital gains or losses, which can far exceed any compensation received from funding rate payments These limitations highlight the need for a more refined mechanism that accounts for long-term cost structures and asset volatility while maintaining the flexibility of perpetual instruments. Perpetual Options: the first faltering steps for advanced rate mechanisms Traditional finance relies heavily on vanilla options (calls and puts), which provide traders with valuable exposure at a fraction of the underlying asset's value. Options pricing incorporates the potential future movements of an asset through implied volatility, as seen in the Black-Scholes model: Options allow investors to gain exposure by paying only the premium rather than the full asset value.
The option premium reflects the expected future returns of an asset beyond the strike price, making options an effective tool for measuring the cost of carrying an asset. e.g. However, standard vanilla options come with an inherent limitation: a fixed maturity date. To address this, FTX introduced the concept of perpetual options — an innovation designed to eliminate expiration constraints by maintaining a rolling basket of vanilla options with a fixed strike price and infinite duration: Where: Despite its potential, the FTX perpetual options model faced sustainability issues. Once an option moved in-the-money, the seller was indefinitely obligated to pay the funding cost, regardless of future market movements. This structure led to a convergence where the perpetual option functioned more like a direct investment in the underlying asset rather than a viable derivatives instrument. Perpetual Constant Maturity Options: bringing Perpetual Options to the next level A more robust alternative to Perpetual Options is the Perpetual Constant Maturity Options (PCMO): vanilla options with constant maturity, perpetually rolled over and regularly strike-adjusted. Where: Xt is the cryptocurrency spot price
Kt is computed such as: And mu(t) is the drift of the asset and delta function is defined as: These instruments maintain a rolling structure while incorporating variable strike prices, which are re-evaluated at fixed intervals (f - the fixing period). An investor holding a PCMO from t1 to tf gets: By doing so, PCMOs offer several advantages: The contract remains perpetual but avoids the pitfalls of fixed-strike perpetual options
The dynamic strike adjustment ensures that both buyers and sellers can benefit from market fluctuations
The structure is designed to counterbalance the directional biases observed in the futures markets PCMOs provide a new approach to the absence of interest rates in crypto markets. By continually resetting strike prices and maintaining constant maturity, they offer a mechanism that better represents the cost of carrying an asset while preserving the flexibility and liquidity benefits of perpetual instruments. Conclusion: PCMO as the future of DeFi As DeFi evolves, the need for robust financial instruments that account for asset carry costs becomes increasingly obvious. The absence of natural interest rates in the crypto market creates challenges for risk management and valuation. While perpetual futures have provided a partial solution, their reliance on order book dynamics and funding rates introduces inefficiencies. Perpetual Constant Maturity Options offer a promising innovation that enhances market stability while maintaining the advantages of perpetual contracts. By dynamically adjusting strike prices and continuously rolling over maturities, PCMOs offer a more sustainable method for representing opportunity costs in the DeFi ecosystem. As these instruments gain adoption, they have the potential to bridge gaps in crypto financial ecosystems, shaping a more sophisticated and efficient DeFi landscape. Since the introduction of Decentralized Exchanges (DEX) with EtherDelta in 2017, Decentralized Finance (DeFi) is reshaping financial markets, providing new alternatives to traditional financial systems. However, as DeFi matures and integrates with traditional finance (TradFi), critical challenges remain, most notably, the absence of a standardized interest rate mechanism for crypto assets. Unlike traditional financial markets, where interest rates influence asset pricing and risk assessment, crypto markets lack a natural cost-of-carry framework. standardized interest rate mechanism This article explores the evolving DeFi landscape, examining how existing trading solutions—ranging from centralized exchanges (CEXs) and Automated Market Makers (AMMs) to perpetual futures—attempt to address these structural gaps. It then explains how Perpetual Constant Maturity Options (PCMOs), already introduced by some initiatives like 1xMM , present a potential breakthrough in bridging DeFi with traditional financial frameworks. Perpetual Constant Maturity Options 1xMM The DeFi landscape: a continuously evolving ecosystem disrupting traditional finance The DeFi landscape: a continuously evolving ecosystem disrupting traditional finance As DeFi continues to mature towards the integration of TradFI, the industry faces a persistent challenge: achieving an optimal balance between decentralization, efficiency, and user protection. The decentralized finance (DeFi) ecosystem has evolved into a diverse landscape of trading solutions, each presenting its own advantages and challenges. Centralized exchanges (CEXs), such as Binance and Deribit, offer high liquidity and ease of use but introduce counterparty risks, elevated fees, and centralized asset control. On the other hand, Automated Market Makers (AMMs), like Uniswap and Curve, facilitate permissionless trading yet struggle with issues such as impermanent loss and liquidity fragmentation, which Layer 2 solutions (like dYdX) aim to address. Yield farming platforms like Aave and Compound provide opportunities for passive income but often lack full transparency and necessitate over-collateralization, reducing capital efficiency. Meanwhile, decentralized perpetual futures platforms, including GMX and PERP, enable leveraged trading but expose users to significant volatility and short-term contract limitations Interest Rates: a major challenge for crypto assets Interest Rates: a major challenge for crypto assets Cryptocurrencies occupy a unique position in financial markets. While often perceived as “digital” currencies, their price behavior resembles that of commodities. They function as a hybrid between fiat currencies and precious metals — serving as a store of value akin to digital gold while also being a medium of exchange like fiat currencies. However, a key distinction sets them apart: the absence of intrinsic interest rates. In traditional finance, the cost of carrying an asset is typically assessed through interest rates, which also influence the pricing of futures contracts. For instance, in foreign exchange (FX) markets, the price of an FX futures contract incorporates interest rate differentials: However, when applied to cryptocurrencies, this model breaks down: Futures prices in crypto markets exhibit extreme volatility, frequently oscillating between positive and negative funding rates within seconds — akin to “volatile” commodities rather than fiat currencies Futures prices in crypto markets exhibit extreme volatility , frequently oscillating between positive and negative funding rates within seconds — akin to “volatile” commodities rather than fiat currencies extreme volatility oscillating between positive and negative funding rates Unlike traditional assets, cryptocurrencies do not have a natural risk-free interest rate, making it difficult to establish a standardized cost of carry. In most situations, Futures prices lead to significantly negative interest rates, if we apply the usual FX futures formula Unlike traditional assets, cryptocurrencies do not have a natural risk-free interest rate , making it difficult to establish a standardized cost of carry. In most situations, Futures prices lead to significantly negative interest rates, if we apply the usual FX futures formula cryptocurrencies do not have a natural risk-free interest rate This absence of interest rates presents a fundamental challenge: there is no inherent mechanism to determine the cost of holding crypto assets over time . This gap complicates risk assessment and financial planning for individuals and institutions holding digital assets. there is no inherent mechanism to determine the cost of holding crypto assets over time Perpetual Futures: a proxy for opportunity cost that come with structural limitations Perpetual Futures: a proxy for opportunity cost that come with structural limitations Perpetual futures contracts provide continuous exposure to short-term futures prices while incorporating funding rates designed to approximate the cost of holding a position. The perpetual funding rate is determined by the difference between the theoretical weighted order book price of an asset and its spot market price (or an index representing its average spot price). This mechanism aims to balance market forces by incentivizing traders to take positions that align with market trends. While perpetual funding rates serve as a proxy for opportunity cost , they come with notable limitations: perpetual funding rates serve as a proxy for opportunity cost The order book is not a guaranteed predictor of future price movements, leading to scenarios where funding rates favor traders with profitable positions rather than offsetting their losses The funding rate does not always reflect actual market price changes; it can remain at zero even during periods of high volatility Investors in leveraged positions are exposed to substantial capital gains or losses, which can far exceed any compensation received from funding rate payments The order book is not a guaranteed predictor of future price movements, leading to scenarios where funding rates favor traders with profitable positions rather than offsetting their losses The funding rate does not always reflect actual market price changes; it can remain at zero even during periods of high volatility Investors in leveraged positions are exposed to substantial capital gains or losses, which can far exceed any compensation received from funding rate payments These limitations highlight the need for a more refined mechanism that accounts for long-term cost structures and asset volatility while maintaining the flexibility of perpetual instruments. Perpetual Options: the first faltering steps for advanced rate mechanisms Perpetual Options: the first faltering steps for advanced rate mechanisms Traditional finance relies heavily on vanilla options (calls and puts), which provide traders with valuable exposure at a fraction of the underlying asset's value. Options pricing incorporates the potential future movements of an asset through implied volatility, as seen in the Black-Scholes model: Options allow investors to gain exposure by paying only the premium rather than the full asset value. The option premium reflects the expected future returns of an asset beyond the strike price, making options an effective tool for measuring the cost of carrying an asset. e.g. Options allow investors to gain exposure by paying only the premium rather than the full asset value. The option premium reflects the expected future returns of an asset beyond the strike price, making options an effective tool for measuring the cost of carrying an asset. e.g. However, standard vanilla options come with an inherent limitation: a fixed maturity date. To address this, FTX introduced the concept of perpetual options — an innovation designed to eliminate expiration constraints by maintaining a rolling basket of vanilla options with a fixed strike price and infinite duration: Where : Where Despite its potential, the FTX perpetual options model faced sustainability issues. Once an option moved in-the-money, the seller was indefinitely obligated to pay the funding cost, regardless of future market movements. This structure led to a convergence where the perpetual option functioned more like a direct investment in the underlying asset rather than a viable derivatives instrument. Perpetual Constant Maturity Options: bringing Perpetual Options to the next level Perpetual Constant Maturity Options: bringing Perpetual Options to the next level A more robust alternative to Perpetual Options is the Perpetual Constant Maturity Options (PCMO): vanilla options with constant maturity, perpetually rolled over and regularly strike-adjusted. Perpetual Constant Maturity Options Where : Where Xt is the cryptocurrency spot price Kt is computed such as: Xt is the cryptocurrency spot price Kt is computed such as: And mu(t) is the drift of the asset and delta function is defined as: These instruments maintain a rolling structure while incorporating variable strike prices, which are re-evaluated at fixed intervals (f - the fixing period). An investor holding a PCMO from t1 to tf gets: By doing so, PCMOs offer several advantages: The contract remains perpetual but avoids the pitfalls of fixed-strike perpetual options The dynamic strike adjustment ensures that both buyers and sellers can benefit from market fluctuations The structure is designed to counterbalance the directional biases observed in the futures markets The contract remains perpetual but avoids the pitfalls of fixed-strike perpetual options The dynamic strike adjustment ensures that both buyers and sellers can benefit from market fluctuations The structure is designed to counterbalance the directional biases observed in the futures markets PCMOs provide a new approach to the absence of interest rates in crypto markets. By continually resetting strike prices and maintaining constant maturity, they offer a mechanism that better represents the cost of carrying an asset while preserving the flexibility and liquidity benefits of perpetual instruments. Conclusion: PCMO as the future of DeFi Conclusion: PCMO as the future of DeFi As DeFi evolves, the need for robust financial instruments that account for asset carry costs becomes increasingly obvious. The absence of natural interest rates in the crypto market creates challenges for risk management and valuation. While perpetual futures have provided a partial solution, their reliance on order book dynamics and funding rates introduces inefficiencies. Perpetual Constant Maturity Options offer a promising innovation that enhances market stability while maintaining the advantages of perpetual contracts. By dynamically adjusting strike prices and continuously rolling over maturities, PCMOs offer a more sustainable method for representing opportunity costs in the DeFi ecosystem. As these instruments gain adoption, they have the potential to bridge gaps in crypto financial ecosystems, shaping a more sophisticated and efficient DeFi landscape.

The Future of DeFi: Perpetual Constant Maturity Options (PCMOs)

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