Why did Perp DEX suddenly become so popular?
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Why did Perp DEX suddenly become so popular?
The "neutral" characteristic is actually an inevitable evolution of trends.
Navigating Web3 tides with focused insightsAuthor: Haotian
You're probably still confused—why did Perp DEX suddenly blow up? Was it really thanks to @cz_binance, the universe's number one influencer, or was it a scheme by @cz_binance to counter @HyperliquidX? Partly true, but it's not that simple:
Building on the logic from my previous article, here’s another insight: Perp DEXs led by Hyperliquid aren't revolutionizing centralized exchanges (CEX) by becoming decentralized DEXs. Instead, they've invented an entirely new species: the Neutral Exchange.
Hmm, I just coined a new term—sounds a bit like "androgynous," right? Indeed, in the crypto context, it refers to exchanges that are "neither purely decentralized nor blatantly centralized."
Why do I say that?
Take Hyperliquid, for example: it has highly decentralized aspects—on-chain asset custody, separation of execution engine and consensus layer from the application layer, all verifiable on its own independent chain, users control their private keys, no KYC required, open-source code, etc. These are very much web3 traits.
But honestly, some purists criticize it for having few validator nodes under centralized control, and for skipping full consensus confirmation on many execution-layer operations to optimize trading speed. This differs significantly from traditional concepts like on-chain settlement finality and block synchronization.
The contradictions are even more pronounced in other Perp DEX clones still in infancy. Beyond the technical black-box nature I mentioned earlier, they exhibit many strange features: closed-source code, no blockchain explorer, only partial state updates synced to L1, and not even complete on-chain records.
Of course, such variants have precedents in other high-performance L1s and Layer2s, all aiming to balance decentralization, performance, and security.
But this new wave of Perp DEX variants goes further. For instance, Ethereum Layer2s replaced decentralization with centralized sequencers, yet have long invested in fault proofs and Stage0-2 technical paths. In contrast, the new Perp DEX players prioritize transaction efficiency as a first principle—and might even boldly dismiss whether they qualify as blockchains at all.
By now, you might wonder where I stand? I embrace the market.
Because this is a "fusion technique" born from the prolonged liquidity tug-of-war between CEX and DEX.
In other words, this "neutral" characteristic is an inevitable evolution:
1) Purely decentralized DEXs have long suffered from poor user experience due to slippage, MEV, gas fees, complex liquidity management, and security risks from stacked components—severely slowing down mass adoption of crypto infrastructure;
2) Traditional centralized CEXs, meanwhile, face regulatory, compliance, and trust crises, while exploiting attention-grabbing advantages to deploy "product, operations, marketing" combos that siphon liquidity across the industry—effectively suffocating all on-chain innovation in the cradle.
See? The "neutral" exchange sits precisely in between—retaining CEX-level user experience while making certain compromises and innovations in asset security and transparency. Its emergence effectively declares a truce in the long-standing feud between CEX and DEX.
Therefore, Hyperliquid didn't threaten Binance at all. On the contrary, like a catalytic agent, it elevated Binance and helped push $BNB past 1,000.
Now, CEX platforms buried in building alpha, wallets, and trading chains can finally shake off the moral pressure from "decentralization fundamentalism," proudly blowing bubbles under the banner of "Neutral Exchange" without restraint.
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Haotian | CryptoInsight
