Best Decentralized Perpetuals Exchanges
Discover the best decentralized perpetuals exchanges with our in-depth analysis of security, asset variety, and user interfaces.
Summary: For effective trading on decentralized perpetual exchanges, choosing a platform known for its trustworthiness, security, liquidity, and user-friendliness is crucial. These platforms allow traders to leverage a variety of derivatives contracts in a non-custodial way, using popular Web 3 wallets like MetaMask for integration.
To help traders navigate their options, we've compiled a list of the top five decentralized perpetual exchanges to consider. Our picks are based on important factors such as strong security measures, a wide range of tradable assets, liquidity, fees, and the quality of the user interface and experience.
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Best Decentralized Perpetuals Platforms
After thorough research evaluating over ten platforms known for their permissionless perpetual trading, we focused on key aspects like trading volume, liquidity, leverage options, cross-chain compatibility, token variety, and user security. This comprehensive review led us to identify the top five decentralized perpetual exchanges. Each chosen platform stands out in the DeFi derivatives market for its unique advantages.
1. HyperLiquid
HyperLiquid is the leading decentralized perpetual exchange, boasting a significant 24-hour trading volume exceeding $3 billion and a user community of more than 80,000. It's recognized for its speed, liquidity, precision, and advanced features like direct TradingView integration for setting take profit/stop loss orders. Its appeal is enhanced by zero gas fees, maker rebates, and competitive taker fees, allowing up to 50x leverage on 102 crypto assets, including Bitcoin, Ethereum, Solana, Celestia, WIF, BONK, PEPE and AVAX.
The platform offers a user-friendly experience with one-click trading and fast transactions via the Arbitrum blockchain, making it a preferred choice for many in the DeFi derivatives space. HyperLiquid prioritizes security and smooth operation with Web 3 wallet integration and is noted for its transparent on-chain order book and adherence to regulatory standards, establishing it as a trusted and advanced platform for traders.
- Fees: Maker fees earn a rebate of 0.2%, and taker fees start at 0.05%, with volume-based discounts.
- Available Assets: It supports over 100 crypto assets, the highest among decentralized perpetual platforms.
- Deposit Methods: Supports all major Web 3 wallets (e.g., MetaMask, Coinbase) and USDC deposits.
- Available Leverage: Provides up to 50x leverage for all listed crypto assets.
2. GMX
GMX stands out as a key player in the decentralized perpetual trading arena, boasting over $144 billion in trading volume since its inception. Available on both Arbitrum and Avalanche, GMX offers traders access to over 20 cryptocurrencies, featuring strong liquidity and competitive spreads. It also provides significant leverage options, up to 50x, with ETH, USDT, and AVAX as acceptable collateral.
The platform's fee model is designed to support various trading approaches, with fees varying between 0.05% and 0.07% under different trading scenarios. This approach has drawn in more than 336,000 users and maintained an open interest of over $111 million. GMX is distinguished by its utility and governance token, granting holders the right to earn 30% of the platform's fees and participate in its governance processes, creating a robust community vibe.
- Fees: Trading fees are set between 0.05% and 0.07% for trades, with dynamic fees for swaps influenced by current market conditions.
- Available Assets: Supports over 20 assets including BTC, ETH, ARB, AVAX, BNB and other top protocols.
- Deposit Methods: Compatible with all major Web 3 wallets (for example, MetaMask or Coinbase) allowing deposits in ETH, USDT, or AVAX.
- Available Leverage: Provides up to 50x leverage for its decentralized perpetual contracts, enabling direct trading from your wallet.
3. dYdX
dYdX, founded by a former software engineer at Coinbase, Antonio Juliano, stands as the third-ranking powerhouse in decentralized perpetual trading, capturing attention with its near $600 million 24-hour trading volume. Celebrated for its minimal fees and robust liquidity, the platform offers traders up to 20x leverage, welcoming those starting with as little as $10.
Leveraging StarkWare's Layer 2 technology, dYdX not only accelerates transactions but also enhances security and privacy with zero-knowledge rollups, drawing over 25,000 traders to its platform. Its quick withdrawal feature is a standout, bypassing the usual delays in moving funds from Layer 2. With the backing of high-profile investors like Brian Armstrong and Fred Ehrsam, dYdX cements its esteemed position in the cryptocurrency world.
- Fees: Low maker fees at 0.02% and taker fees at 0.05%.
- Available Assets: It supports over 51, including major cryptocurrencies like ETH, BTC, SOL, NEAR, JTO, ORDI, ARB, and ADA.
- Deposit Methods: Seamless integration with any Web 3 EVM-compatible wallet, accepting USDC as collateral.
- Available Leverage: Offers up to 20x leverage for perpetual contracts, directly accessible through your wallet.
4. Kwenta
Kwenta secures its spot as the fourth-best platform, specializing in on-chain commodity trading with a notable 24-hour trading volume of $50 million. Thanks to Optimism's layer 2 solution, Kwenta offers swift trade confirmations and drastically reduced gas fees compared to Ethereum's Layer 1, attracting a dedicated base of over 15,000 traders.
Kwenta distinguishes itself with its exclusive range of synthetic assets, enabling traders to invest in a variety of commodities like gold, oil, and silver with up to 50x leverage. The platform utilizes decentralized Chainlink and Pyth oracles for precise, secure price feeds. This innovative approach does away with traditional order books, facilitating trades against a comprehensive Synthetix debt pool, ensuring liquidity at any price level.
- Fees: Competitive maker fees at 0.02% and taker fees at 0.10%.
- Available Assets: A diverse selection of over 25 crypto assets and commodities such as gold and silver.
- Deposit Methods: Compatible with any EVM-compatible wallet, using sUSD for collateral.
- Available Leverage: Offers up to 50x leverage for trading synthetic assets.
5. Drift
Drift Protocol is a trusted DeFi applicaiton that caters to Solana users with its innovative trading solutions. It provides a seamless experience with Spot Trading, Perpetuals Trading, Borrow & Lend, and Passive Liquidity Provision, addressing the key blockchain challenges of speed and computational limits. Its notable achievements include a cumulative trading volume exceeding $10 billion, demonstrating its significant impact and popularity within the DeFi ecosystem.
By integrating Just-in-Time Auction Liquidity, a decentralized Limit Orderbook, and AMM Liquidity, Drift effectively tackles the usual drawbacks of on-chain exchanges like slow transactions, wide spreads, and inadequate liquidity. This approach not only enhances the trading process but also attracts market makers and liquidity providers, making Drift a preferred platform for a dynamic and efficient trading experience.
- Fees: Drift utilizes a tiered fee system, with taker fees ranging between 0.2% to 0.6%, adjusted according to the 30-day trading volume and staking amounts.
- Available Assets: Offers more than 20 assets including BTC, WETH, SOL, HNT, JTO, JUP, APT, and more.
- Deposit Methods: Supports using USDC and SOL for cross-collateral token deposits, which can also serve as margin in the Perpetual Markets.
- Available Leverage: Provides up to 10x leverage for specific pairs such as HNT-PERP and XRP-PERP, and up to 5x leverage for trading JitoSOL.
What is a Decentralized Perpetuals Exchange?
A decentralized perpetual exchange offers a non-custodial platform for trading perpetual contracts, significantly reducing the risk of issues similar to those encountered with FTX by eliminating the need for a central authority. By utilizing blockchain technology, these platforms enhance the security and transparency of transactions.
Perpetual contracts, which are like futures contracts without an expiry date, enable traders to maintain positions for an indefinite period. This feature, along with the ability to use high leverage—trading with more capital than the initial deposit—makes these exchanges a preferred choice for traders seeking greater control and flexibility in their cryptocurrency trading ventures.
Are DeFi Perps Platforms Safe?
Safety on DeFi perpetual platforms can vary, primarily due to the differences in their smart contracts and the thoroughness of the audits they have undergone. To evaluate a platform's security, it's crucial to check for detailed smart contract audits conducted by reputable firms. While the platforms we've highlighted have undergone some level of scrutiny, conducting your own research remains indispensable.
Moreover, the non-custodial nature of DeFi perpetual platforms presents a safer alternative compared to traditional custodial services. In the DeFi space, users maintain full control over their funds, which only leave their wallets when executing a trade. This significantly lowers the risk of issues such as exchange hacks or mismanagement by the institution, offering a more secure trading atmosphere.
Bottom Line
In evaluation highlights the crucial aspects of selecting decentralized perpetual exchanges that excel in security, liquidity, and user-friendliness. Through our research, HyperLiquid, GMX, dYdX, Kwenta, and Drift stand out for their distinctive benefits in the decentralized finance ecosystem. These platforms prioritize non-custodial trading, reducing the risks linked to centralized entities and offering traders greater control and adaptability. With their focus on intuitive interfaces and a diverse range of assets, these exchanges are prime choices for traders aiming for a secure and effective cryptocurrency trading experience.
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