Attracting traders to Sui Network's Perp DEX may require more than just technological innovation, but attractive incentive mechanisms may be key. This article is from 0xShinChan, an article by crypto KOL, curated, compiled and written by Felix, PANews. (Synopsis: Sui ecological heat!) BOBA DAO and Sui Foundation collaborate with the ecological star project to hold the "Taipei Water Party" community gathering) (Background supplement: Delphi Digital: In-depth analysis of Sui Q1 ecological development) The post-FTX era has completely changed the trading landscape, driving a large number of users to flock to decentralized perpetual contract exchanges (Perp DEX). The daily trading volume of these platforms now exceeds $30 billion, which shows that there is a huge demand for decentralized derivatives. However, the fragmented nature of early Perp DEX, often affected by UI/UX (user interface/user experience) usability, liquidity depth, and reliability of feeding, hindered its widespread adoption. Starting in 2024, the market landscape begins to change, marked by the emergence of innovative models such as GMX PVP and dYdX order books. Today, the lending, DEX and yield trading protocol teams on the Sui Network are enriching its product line, including perpetual contract trading. Sui's Advantages in Perp DEX Sui actually offers several compelling features that make it a strong contender for building a sustainable DEX. High performance and low latency: Sui's parallel transaction processing enables high throughput and low latency, which is essential for efficient order matching and a smooth trading experience on the DEX. Object-centric data model: Sui's unique data model enables efficient storage and parallel processing of account and asset data. zkLogin for seamless onboarding: The zkLogin feature simplifies the onboarding process for users, allowing account creation with familiar Web2 credentials, reducing barriers to experience for new traders. Sponsored transactions: Sui's sponsored transactions feature reduces user costs and improves the overall trading experience. Here are the early builders of Sui: Bluefin's Astros Aftermath Finance Typus Finance GLP trading model Kriya, powered by the NAVI Protocol, is also about to launch its Perp DEX. Before diving into each one, here's an overall comparison table. The following will compare and study each protocol, and analyze its transaction characteristics, protocol mechanism and performance. Bluefin Bluefin, as the established Perp DEX on Sui, combines a fast-matching off-chain order book and a secure on-chain settlement engine. Protocol liquidity is managed by professional market maker (MM): Leveraging Sui's parallel transaction processing capabilities, Bluefin boasts extremely low order execution latency and fast on-chain final confirmations (less than 500 milliseconds). In addition, it supports almost all perpetual assets on Sui, covering the widest range, including $DEEP, $WAL, and $TRUMP. The 24-hour perpetual contract trading volume of the Bluefin platform is between $40 million and $70 million, indicating a high level of trading activity on the platform. The BTC-PERP trading pair typically accounts for the largest share of daily trading volume (about 60%), followed by SUI-PERP and ETH-PERP. According to Defi Llama, the annual costs are about $4 million. The UI/UX is excellent. Users can use the trade view function, the interface is clear and contains all the required content. It is worth mentioning that Bluefin's zkLogin integration is supported by Sui. This simplifies the user onboarding process and removes the complexity of wallets and seed phrases. Aftermath (Testnet) Aftermath first launched its Perp DEX testnet in November 2024. It executes entirely on-chain, unlike many Perp DEXs that rely on off-chain order book matchmaking, Aftermath puts the entire order book on-chain. As it is still in the testnet phase, statistics are limited. Aftermath is more focused on boosting the liquidity of its DEX and existing pools/TVL. The formal release of potential future incentives/Perp DEX may take place at a later date. Astros (Beta) Astros is a DEX aggregator + Perp DEX built by the NAVI Protocol team. Like Bluefin and Aftermath, NAVI Protocol uses an order book mechanism in its Perp DEX. As it is currently in beta, information and specific mechanisms on the Cooperative Market Maker (MM) are not exhaustive. Its 24-hour trading volume reached $300 million, which may be driven by its ongoing trader incentive program. Typus Perp Typus Finance launched its GMX-style Perp DEX about two weeks ago. According to Defi Llama, the 24-hour trading volume is about $200,000, and the TVL of the TLP pool is more than $700,000. The assets in the TLP pool include $SUI, $USDC, $DEEP, and $LBTC, and the APR is currently over 100%. Some observations and conclusions The rise of the order book: Sui's Perp DEX ecosystem is currently clearly biased towards the order book model, a phenomenon that is reflected both in the choice of protocol design and in its dominance in trading volume. This suggests that the orderbook mechanism either has inherent applicability in Sui's architecture or is market-accepted by its user base. Asset scarcity and the lure of memes: The apparently limited range of assets supported by the Sui Network Perp DEX represents a potential opportunity. If a protocol quickly embraces the volatile but lucrative realm of memecoin trading, which has growing cultural roots on Sui, exploiting the speculative nature inherent in these assets could drive up trading volumes on the platform. Start-up phase and the need for incentives: Sui's cumulative trading volume and TVL are still in their infancy compared to the mature and highly liquid Perp DEX ecosystem on EVM and Solana. Given the existing feature set and available features of these alternative chains, attracting traders to Sui Network's Perp DEX may require more than just technological innovation, attractive incentives may be the key incentive to attract speculative capital and promote significant growth in the Perp DEX ecosystem. Related Stories Parallel MPC Network IKA: Has received strategic investment from the Sui Foundation, with a total fundraising of more than $21 million Why did Sui rise 70% in a week? From Pokémon collaboration rumors to DEX...
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Sui on-chain Perp DEX Overview: What are the differences between the four major protocols?
Attracting traders to Sui Network's Perp DEX may require more than just technological innovation, but attractive incentive mechanisms may be key. This article is from 0xShinChan, an article by crypto KOL, curated, compiled and written by Felix, PANews. (Synopsis: Sui ecological heat!) BOBA DAO and Sui Foundation collaborate with the ecological star project to hold the "Taipei Water Party" community gathering) (Background supplement: Delphi Digital: In-depth analysis of Sui Q1 ecological development) The post-FTX era has completely changed the trading landscape, driving a large number of users to flock to decentralized perpetual contract exchanges (Perp DEX). The daily trading volume of these platforms now exceeds $30 billion, which shows that there is a huge demand for decentralized derivatives. However, the fragmented nature of early Perp DEX, often affected by UI/UX (user interface/user experience) usability, liquidity depth, and reliability of feeding, hindered its widespread adoption. Starting in 2024, the market landscape begins to change, marked by the emergence of innovative models such as GMX PVP and dYdX order books. Today, the lending, DEX and yield trading protocol teams on the Sui Network are enriching its product line, including perpetual contract trading. Sui's Advantages in Perp DEX Sui actually offers several compelling features that make it a strong contender for building a sustainable DEX. High performance and low latency: Sui's parallel transaction processing enables high throughput and low latency, which is essential for efficient order matching and a smooth trading experience on the DEX. Object-centric data model: Sui's unique data model enables efficient storage and parallel processing of account and asset data. zkLogin for seamless onboarding: The zkLogin feature simplifies the onboarding process for users, allowing account creation with familiar Web2 credentials, reducing barriers to experience for new traders. Sponsored transactions: Sui's sponsored transactions feature reduces user costs and improves the overall trading experience. Here are the early builders of Sui: Bluefin's Astros Aftermath Finance Typus Finance GLP trading model Kriya, powered by the NAVI Protocol, is also about to launch its Perp DEX. Before diving into each one, here's an overall comparison table. The following will compare and study each protocol, and analyze its transaction characteristics, protocol mechanism and performance. Bluefin Bluefin, as the established Perp DEX on Sui, combines a fast-matching off-chain order book and a secure on-chain settlement engine. Protocol liquidity is managed by professional market maker (MM): Leveraging Sui's parallel transaction processing capabilities, Bluefin boasts extremely low order execution latency and fast on-chain final confirmations (less than 500 milliseconds). In addition, it supports almost all perpetual assets on Sui, covering the widest range, including $DEEP, $WAL, and $TRUMP. The 24-hour perpetual contract trading volume of the Bluefin platform is between $40 million and $70 million, indicating a high level of trading activity on the platform. The BTC-PERP trading pair typically accounts for the largest share of daily trading volume (about 60%), followed by SUI-PERP and ETH-PERP. According to Defi Llama, the annual costs are about $4 million. The UI/UX is excellent. Users can use the trade view function, the interface is clear and contains all the required content. It is worth mentioning that Bluefin's zkLogin integration is supported by Sui. This simplifies the user onboarding process and removes the complexity of wallets and seed phrases. Aftermath (Testnet) Aftermath first launched its Perp DEX testnet in November 2024. It executes entirely on-chain, unlike many Perp DEXs that rely on off-chain order book matchmaking, Aftermath puts the entire order book on-chain. As it is still in the testnet phase, statistics are limited. Aftermath is more focused on boosting the liquidity of its DEX and existing pools/TVL. The formal release of potential future incentives/Perp DEX may take place at a later date. Astros (Beta) Astros is a DEX aggregator + Perp DEX built by the NAVI Protocol team. Like Bluefin and Aftermath, NAVI Protocol uses an order book mechanism in its Perp DEX. As it is currently in beta, information and specific mechanisms on the Cooperative Market Maker (MM) are not exhaustive. Its 24-hour trading volume reached $300 million, which may be driven by its ongoing trader incentive program. Typus Perp Typus Finance launched its GMX-style Perp DEX about two weeks ago. According to Defi Llama, the 24-hour trading volume is about $200,000, and the TVL of the TLP pool is more than $700,000. The assets in the TLP pool include $SUI, $USDC, $DEEP, and $LBTC, and the APR is currently over 100%. Some observations and conclusions The rise of the order book: Sui's Perp DEX ecosystem is currently clearly biased towards the order book model, a phenomenon that is reflected both in the choice of protocol design and in its dominance in trading volume. This suggests that the orderbook mechanism either has inherent applicability in Sui's architecture or is market-accepted by its user base. Asset scarcity and the lure of memes: The apparently limited range of assets supported by the Sui Network Perp DEX represents a potential opportunity. If a protocol quickly embraces the volatile but lucrative realm of memecoin trading, which has growing cultural roots on Sui, exploiting the speculative nature inherent in these assets could drive up trading volumes on the platform. Start-up phase and the need for incentives: Sui's cumulative trading volume and TVL are still in their infancy compared to the mature and highly liquid Perp DEX ecosystem on EVM and Solana. Given the existing feature set and available features of these alternative chains, attracting traders to Sui Network's Perp DEX may require more than just technological innovation, attractive incentives may be the key incentive to attract speculative capital and promote significant growth in the Perp DEX ecosystem. Related Stories Parallel MPC Network IKA: Has received strategic investment from the Sui Foundation, with a total fundraising of more than $21 million Why did Sui rise 70% in a week? From Pokémon collaboration rumors to DEX...