The Path to PerpDEXs Breakthrough Exploring the Future of Perpetual Contract Trading through Pumpfun

CoinWorld News Report:
Author: NingNing Source: @0xNing0x
In the “never-sleeping” casino of the crypto market, we once again witness the power of storytelling. The news that dYdX may launch a MEME coin Launchpad platform similar to Pump.fun has caused a 22% surge in $DYDX. But today, I want to discuss not the short-term price fluctuation, but the deeper issues reflected behind it.
1. When PerpDEX Meets MEME: A destined “love-hate” relationship?
At first glance, PerpDEX and MEME coins seem like a pair of enemies. One shouts the slogan of “trillions of derivatives trading will move to the blockchain,” a typical VC narrative; while the other raises the flag of anti-authority and anti-VC, like a rebellious teenager in the crypto world. But upon closer examination, aren’t their user profiles and business models surprisingly similar?
Both are selling “financial poison” with high volatility and high risk-reward ratios to players on the chain who crave excitement, such as Degens, Chads, and Jeets. It’s like a high-end restaurant and street food, with one appearing elegant and the other vulgar, but ultimately both satisfy people’s appetites.
2. The secret of Pump.fun’s success: Simple yet effective
Why can platforms like Pump.fun achieve significant success in a short period of time? The answer lies in its simple and effective product paradigm: bonding curve + AMM (xy=k) curve.
This seemingly simple model solves several key problems:
– Low entry barrier: Anyone can be a coin creator, anyone can be a scythe. Isn’t this the essence of “decentralization” popular in the industry?
– Instant liquidity: New coins can be traded immediately, how refreshing!
– Transparent pricing: Prices are determined by the bonding curve and AMM algorithm, at least appearing fair and just.
– Maximum entertainment: Coin creation, coin trading, liquidations, all-in-one service, like a crypto version of a “spa.”
In comparison, traditional PerpDEX seems a bit “out of touch with reality.” Complex operations, sophisticated financial jargon, and cold data panels seem to say, “Sorry, we only welcome professionals.”
3. PerpDEX’s dilemma: The troubles of being high-end
Existing PerpDEX, whether dYdX’s off-chain matching and on-chain settlement, or Synfutures and GMX’s pure on-chain models, all essentially replicate CEX on the chain, and therefore face some common problems:
– Oracle dependency syndrome: Due to insufficient depth and small liquidity scale, PerpDEX lacks the effectiveness of price discovery and relies on oracle feeds for valid prices. This makes PerpDEX a paradise for arbitrageurs and can harm the interests of LP providers or market makers to some extent. In addition, hackers can use oracle attacks to drain the market-making funds of trading pairs. Chainlink and Pyth monopolize the oracle market, bringing potential systemic risks through this high level of centralization.
– Anxiety about trading pair liquidity capacity: Compared to the multi-million-dollar transactions in traditional derivatives markets, PerpDEX’s liquidity capacity for trading pairs is still insufficient. This limitation directly restricts the participation of institutional investors and hinders the improvement of market depth.
– Complex liquidation mechanisms: There are significant differences in the liquidation mechanisms of different platforms, from liquidation thresholds (ranging from 50% to 80%) to liquidation methods (partial vs. full), and even liquidation rewards (ranging from 1% to 5%), there is a lack of unified standards.
– Heavy operating costs: One of the major problems caused by the homogeneity of CEX contract products is the tendency to fall into a vicious circle of competition. CEX can afford to integrate industry resources with professional BD teams, professional community managers to attract buyers, and professional market makers to provide liquidity and matching. DEX, on the other hand, often cannot afford these costs and has to rely on incentives or liquidity mining for cold starts, but the result often leads to a sharp decline in business data after airdrops.
4. A way to break the deadlock: What can PerpDEX learn from Pump.fun?
Since they can’t beat them, join them. PerpDEX needs to shift its learning focus from CEX to http://Pump.fun.
a) Simplification is the key:
Creating perpetual contract trading pairs with just one click? Why not! Make creating new trading pairs as simple as tweeting. PerpDEX needs to find a product mechanism that supports foolproof creation of new contract trading pairs, supports joint market making for LP providers, and enables active discovery of contract trading opportunities.
b) Innovation in AMM models:
Instead of sticking to xy=k, why not try something new? Dynamic fees, hybrid curve models, LPs will be delighted.
c) Adding social attributes:
Trading should also have a social circle! Sharing strategies, showing off trades, and interacting with each other, turning the dull digital game into a social carnival.
d) Intelligent risk management:
Automated liquidation systems, cross-trading pair risk hedging, making risk control feel like playing a challenging game of Tetris.
e) Thorough decentralization:
Reduce reliance on oracles and explore true on-chain price discovery mechanisms. Let the community truly have power, shifting from “passive price feeding” to “autonomous price discovery.”
5. Is the era of pure on-chain models coming?
In this innovation, pure on-chain models like SynFutures may have the last laugh. They naturally have some advantages:
– Maximum transparency: All operations are on-chain, making cheating difficult.
SynFutures’ Oyster AMM model deploys the order book and AMM entirely on-chain.
All trading pricing and matching logic are executed by smart contracts, accessible for verification by anyone.
The platform has had zero security incidents so far, proving the security of a pure on-chain architecture.
– Seamless integration with the DeFi ecosystem: Unlimited combination possibilities, boosting capital efficiency.
Through a single-asset concentrated liquidity mechanism, LPs only need to provide a single asset.
Supports integration with other DeFi protocols, such as liquidity mining and yield aggregation.
– Great potential for innovation: No constraints from off-chain, imagination knows no bounds.
The first to achieve permissionless listing, anyone can create perpetual contract trading pairs.
Innovative mechanisms like dynamic fees and marking prices effectively prevent market manipulation.
The continuously evolving Oyster AMM model demonstrates the innovative potential of a pure on-chain architecture.
– High degree of decentralization: Not afraid of “running away” because there’s simply no one to run.
All platform parameters and rules are executed by smart contracts, eliminating the possibility of human intervention.
All risk management processes, including liquidation, are automated, enhancing system reliability.
Future transition to DAO governance for truly decentralized operations.
The future of PerpDEX lies not in simply imitating Pump.fun, but in creating a new paradigm that is both professional and fun, safe and stimulating. It should be a combination of Bloomberg Terminal and TikTok, a perfect fusion of Wall Street and Las Vegas.
In this new paradigm, everyone can be their own market maker, and each transaction becomes a social activity, while the entire platform is an ever-celebrating financial carnival. This is the ultimate form that can truly move “trillions of derivatives trading to the blockchain.” Of course, this path is destined to be challenging, with regulatory, technological, and user education challenges lying ahead.
These are some of my thoughts on the future of PerpDEX. Remember, this is not investment advice, but a brainstorming session. In this crazy crypto world, always DYOR (do your own research). Whether you choose to be a wave maker or a surfer, remember to fasten your seatbelt.