Perpetual trading has become one of the hottest narratives in crypto. Almost every blockchain claims it will deliver seamless DeFi perpetuals, but most of these promises remain theoretical. Today, perpetual futures dominate centralized exchange volume, and while on-chain perpetuals are growing, they still suffer from major structural limitations.
Fogo Network is attempting to solve core issues like slow execution, front-running, unpredictable slippage, and inconsistent trade outcomes. If DeFi truly wants to rival centralized exchanges, the underlying infrastructure for perpetuals must evolve—and Fogo is positioning itself as a serious contender.
The Core Challenges Facing On-Chain Perpetuals
Most existing perpetual platforms run on general-purpose blockchains that were never optimized for high-speed trading. This results in:
Transaction latency and congestion
Bots exploiting transaction ordering
Wide spreads during high volatility
Perpetual markets require precision, ultra-low latency, transparent price discovery, and dependable liquidation mechanisms—areas where current systems often fall short.
Another major flaw is unfair transaction sequencing. When transactions are processed sequentially, faster participants gain an unfair advantage, creating toxic order flow and front-running opportunities.
Fogo’s Potential Breakthrough: Frequent Batch Auctions
Fogo’s use of Frequent Batch Auctions (FBA) could redefine how trades are executed. Instead of processing orders individually, trades are bundled into short intervals and settled at a single clearing price.
This approach could lead to:
More stable and accurate funding rates
Fairer trade execution for all participants
Reduced manipulation during market spikes
Looking Ahead
If Fogo can deliver exchange-level performance while maintaining decentralized settlement, it could push DeFi perpetuals into an entirely new era.
What’s your view on the future of DeFi perpetual trading?