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dex

Decentralized exchanges (DEX) are trading platforms based on blockchain technology that allow users to trade cryptocurrencies directly on-chain without the need for centralized intermediaries. DEX automatically matches trades through smart contracts, providing higher privacy and security while reducing counterparty risk. Its decentralized nature makes it less susceptible to single points of failure and regulatory intervention, but it also faces challenges such as insufficient liquidity and poor user experience.
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first_img Decentralised.co: On-chain options trading is still less than 1% of perpetual DEX

Decentralised.co published: The on-chain options trading volume is still less than 1% of perpetual contract DEX, while traditional market options trading is about three times that of futures. The institution backtested Bitcoin daily closing prices from January 2018 to October 2026, finding that among the ultimately profitable longs, the liquidation probabilities for 10x perpetual contracts over 180 days, 90 days, and 60 days were 47%, 29%, and 18%, respectively. It replayed three $1,000 Bitcoin longs on October 10, 2025: the 10x perpetual was liquidated at 21:14, the 30-day call option dropped to a low of $181 but returned to over $800 within an hour, and a $52 7-day put option helped the 10x long survive the downturn.Decentralised.co: In the past, on-chain options often failed due to fragmented order books, difficult hedging, and locked funds. Hegic depositors lost most of about $80 million in May 2021, Lyra depositors experienced a 4.9% loss in the Bitcoin pool and a 17.6% loss in the Ethereum pool within 7 months, and PsyOptions closed its product in June 2024. With the combination of perpetual liquidity like Hyperliquid, the locked funds required to sell a Bitcoin call option could be reduced from about $100,000 to about $15,000, while monthly returns increased from 1.8% to about 12%.The article lists Hyperliquid as the main venue for hedging liquidity, with the options protocol Derive (formerly Lyra) as the underlying engine, Paradex handling large trades, and Hypercall being the first options venue built on Hyperliquid. Derive liquidated about $18 billion in notional options value in the year ending October 19. After Paradex integrated with Paradigm on September 15, the date options trading volume increased from less than $3 million to $58.7 million within a week, and open contracts decreased from over $250 million to about $96 million by October 14. By September 2026, the notional value of on-chain options is expected to double to $5 billion, with premiums rising to $85 million.

first_img Aerodrome and Velodrome merged to launch the Aero spot exchange across the Seven Network

Decentralized exchange Aerodrome Finance (AERO) and Velodrome announced their official merger, launching the on-chain spot exchange Aero, deployed on seven networks: Ethereum mainnet, Base, Robinhood Chain, Ink, OP Mainnet, Arc, and Arbitrum, aiming to integrate the existing businesses of the two DEXs into a unified platform. The exchange is developed by Dromos Labs.According to a statement released on Wednesday, Aerodrome accounted for 58% of DEX trading volume on Base in the third quarter, while Velodrome accounted for 60% on OP Mainnet, with Aerodrome leading all DEXs in Bitcoin-USD trading volume during the same period. The new exchange extends this model to seven networks, which collectively handle approximately $120 billion in DEX trading each month. Alex Cutler, founder and CEO of Dromos Labs, stated that Aerodrome and Velodrome prevailed because the model is more beneficial to users, bringing Aero to the largest market on-chain, with 100% of the revenue generated returned to users staking AERO.As part of the merger, existing AERO and VELO tokens will migrate to the new AERO token, with veAERO and veVELO converting to sAERO. Aero introduces a new economic system, with the core feature Predictive Allocation allowing participants to stake AERO and direct liquidity reward budgets to markets expected to generate returns. Additionally, Aero launches Metaswaps, connecting cross-network transactions using existing on-chain liquidity; the Slipstream V3 upgrade introduces a dynamic fee mechanism that increases fees during rapid market fluctuations and captures MEV on supported Layer 2 networks.

ARK Invest released the Q3 DeFi report: stock tokenization has become the main driving force behind the recovery of on-chain trading activities, accounting for approximately 9% of spot DEX trading volume

ARK Invest's Q3 2026 DeFi report shows that stock tokenization has become the main driving force behind the rebound in on-chain trading activity for the quarter. The trading volume of tokenized stock spot DEX reached approximately $50 billion, about 9 times that of the previous quarter, with its share of total spot DEX trading volume rising from about 1% to around 9%. Overall, DEX spot trading volume increased by approximately 13% quarter-over-quarter to $571 billion, marking the first growth in nearly four quarters.Robinhood Chain achieved approximately $65 billion in DEX trading volume and $51 million in network revenue in its first quarter, with network revenue nearing the level of BNB Chain during the same period. However, ARK expects that recent adjustments to the Gas mechanism will cause the chain's revenue to decline from current levels. The total supply of stablecoins decreased by about 3% quarter-over-quarter to $309 billion, but adjusted trading volume increased by approximately 16% quarter-over-quarter to $781 billion, with the number of monthly active addresses growing by about 39% to 73 million.In the perpetual contract DEX, there is a divergence between open positions and trading volume: the value of open contracts increased by about 76% quarter-over-quarter to $24 billion, while quarterly trading volume decreased by about 16% to $1.4 trillion. Among them, Hyperliquid's open contract value is about $13 billion, accounting for approximately 53%. ARK believes this indicates fewer but larger positions held for longer durations.
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