What Are Perpetual DEXs? đ | DeFi Explained
Perpetual DEXs (Decentralized Exchanges) are platforms that let traders open perpetual futures contracts directly on-chainâwithout relying on a centralized exchange.
đč No expiry contracts
Unlike traditional futures, perpetual contracts have no expiration date. Traders can hold positions as long as they maintain margin.
đč On-chain & non-custodial
Users trade directly from their wallets, keeping full control of funds while smart contracts handle execution and settlement.
đč Leverage & two-way trading
Perpetual DEXs allow both long and short positions with leverage, enabling traders to profit in both rising and falling markets.
đč Funding rate mechanism
Prices are kept close to the spot market using funding rates, which balance long and short demand.
đč AMMs or order books
Some Perp DEXs use virtual AMMs, while others use on-chain or hybrid order books for liquidity.
đ In short, Perpetual DEXs combine advanced derivatives trading with DeFiâs transparency and self-custody, offering a powerful alternative to centralized futures platforms.
A key building block for the next phase of DeFi trading đ
