Perpetual futures trading involves a type of derivative contract that permits traders to speculate on the future price of an underlying asset without a fixed expiration date. These contracts are common in cryptocurrency markets, offering continuous exposure to price movements. Unlike traditional futures, they do not require physical delivery of the asset and maintain price alignment through funding rates. This trading mechanism allows for sustained leveraged positions.
Context
Perpetual futures trading is a prevalent and often high-risk activity in digital asset markets, providing significant leverage and continuous exposure to price volatility. Its speculative nature attracts considerable attention, leading to increasing regulatory scrutiny worldwide. News frequently covers market liquidations, funding rate dynamics, and the development of new platforms offering these derivatives. Regulators are assessing how to best manage the systemic risks associated with such highly leveraged products.
On-chain derivatives have achieved a structural tipping point, validating custom L1 architectures and trustless execution as the superior model for leveraged capital.
High-speed on-chain CLOBs have achieved CEX-grade execution, driving $1T+ in monthly volume and establishing a defensible network effect in derivatives.
The new StarkEx-based L2 for perpetuals merges CEX execution speed with on-chain settlement, fundamentally shifting the decentralized derivatives landscape.
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