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What Is Perp DEX and How Are They Evolving? Selection Phase Explained

3 min read
What Is Perp DEX and How Are They Evolving? Selection Phase Explained

Key Takeaways

  • 1 The Perp DEX market has entered a new stage called the selection phase.
  • 2 Jonaso (former Deloitte analyst) confirms Perp DEX viability as a product.
  • 3 Competition now focuses on architectures delivering speed, stability, and quality UX.
  • 4 Core approaches include custom blockchains, shared L2 with AMM/simplified order books, and hybrid models.
  • 5 Custom blockchains offer on-chain order books and performance control but require high costs.
  • 6 L2/AMM lower entry barriers but face delays, MEV, and slippage; hybrids aim to combine benefits while maintaining decentralization.

Explore the Perp DEX market's selection phase, key architectures like custom blockchains, L2/AMM, and hybrids shaping speed and user experience.

The decentralized perpetual exchange market has entered a new development stage commonly referred to as the selection phase. According to Jonaso, a former Deloitte analyst, the viability of Perp DEX as a product is already proven, and the key question now is which architectural solutions will prevail. The market focus is shifting from "do they work" to criteria like speed, stability, and quality of user experience.

Selection Phase in the Perp DEX Market

The selection phase refers to a period when weaker implementations exit the market, leaving more efficient designs. Jonaso emphasizes that the intrigue now lies in which technical approaches can deliver prioritized user characteristics. Consequently, industry attention concentrates on execution quality and predictability of trading processes; this is reflected in architecture choices and product trade-offs.

If you want to see an example of a platform with an alternative approach to interface and product, see What Is Hyperliquid, which discusses solutions for perpetual futures in a different format.

Architectural Solutions in Perp DEX

Developing Custom Blockchains: Pros and Cons

Some teams have chosen to develop custom blockchains, enabling a fully on-chain order book and high control over performance. This approach improves execution speed and predictability since the team manages the entire stack logic. However, it involves high development costs and significant operational complexity to maintain the network.

Using Shared L2 Networks with AMM

Other projects utilize shared L2 networks and AMM models or simplified order books, lowering entry barriers and accelerating launch. This path allows faster scaling through shared infrastructure and reduces development expenses. However, it often comes with execution quality compromises because the infrastructure is not always optimized for Perp DEX's specific requirements.

Issues with Delays, MEV, and Slippage

Using shared networks increases risks of delays, MEV, and slippage, especially as trading volumes grow. These limitations become critical for active traders and can degrade user experience. Ultimately, addressing these problems shapes the demands for the next generation of solutions.

For a broader perspective on interface and product changes, see the material on market interface, which discusses shifts in design and user scenarios.

Hybrid Models as the Main Trend

Between the extreme approaches, the hybrid model segment is rapidly growing and is currently the key focus of the cycle. These solutions combine elements of AMM and order books or introduce off-chain components for matching and pre-approval of trades, leaving final settlement and execution on-chain. This allows preserving decentralized properties at critical points while improving trading speed and predictability.

Hybrids aim to bring the user experience closer to what active traders expect from centralized exchanges without sacrificing self-custody of funds. Thanks to this segment, there is the highest concentration of momentum and interest from developers and users.

Prospects for Perp DEX Market Development

The current cycle's main movement is the selection of architectures that better address speed, stability, and UX challenges. Hybrid solutions already occupy a central place in discussions as a way to maintain decentralization benefits while enhancing service quality. Platforms combining predictable execution and asset control are attractive to traders and developers alike.

Why It Matters

For a miner with 1–1000 devices living and working in Russia, changes in Perp DEX architecture do not alter mining technical parameters or equipment operation. However, if you also trade or hold assets, improvements in speed and UX on Perp DEX can change market access convenience and order execution quality. Understanding development directions helps evaluate whether to switch to new platforms or continue using proven solutions.

What to Do?

  • Assess if you use Perp DEX for trading: if yes, try new hybrid platforms with small amounts and compare execution and slippage.
  • Maintain control over your keys: choose solutions that keep settlement and asset ownership on-chain if self-responsibility for funds matters to you.
  • Monitor UX quality and execution speed: for active trading, this is a primary criterion when selecting a platform.
  • Do not change mining infrastructure based on Perp DEX news: architectural shifts in exchanges do not affect miner settings or operation.

Frequently Asked Questions

What does the "selection phase" mean in the context of Perp DEX?

It is a market stage when weaker architectural solutions are gradually pushed out, leaving platforms with the best combination of speed, stability, and user experience.

Why do hybrid models attract attention?

Because they combine elements of AMM and order books or use off-chain matching while maintaining on-chain execution, aiming to improve speed and predictability.