What is important for a Perp DEX to grow explosively after TGE?
@edgeX_exchange delivered major partnership and investment news with Circle.
Before explaining how to interpret this news, we have to address one of the most debated topics recently on @coinglass_com , the discussion around volume and liquidation amounts between exchanges and Perp DEXs
Liquidation = real trading?
In that debate, @HyperliquidX showed “data we can actually verify” at around daily $3.76B and liquidations of about $123M, and compared to Lighter and Aster, the dominant view was that real users are more actively participating.
Just looking at the metrics, it is a very surprising figure.🫢
If we interpret this ratio as it is, we can say that real trading is occurring heavily on Hyperliquid, and that meaningful liquidations are actually taking place.
Why Comparisons Matter
However, this debate is incomplete unless we compare Binance’s volume and liquidation ratio from the same perspective.
During the same period, Binance had daily $46B and liquidations of about $58M, so the liquidation to volume ratio appears lower than Hyperliquid’s.
Binance Volume: $46B / Liquidation: $58M
Hyperliquid Volume: $3.76B / Liquidation: $123M
This phenomenon, where liquidations relative to volume occur at more than 10 times the level, is not limited to a specific day. Even in normal times, a ratio gap of around 10 times is occurring.
What these figures imply requires considering various possibilities such as differences in users between CEXs and Perp DEXs, differences in product composition, and leverage distribution. However, what we want to focus on here is “the scenario that we must consider, that on Hyperliquid, liquidation activity driven by various intentional objectives, two way hedging, or wash trading could additionally occur beyond trading itself.”
Does This Undermine the Perp DEX Thesis?
Then a core question arises.
Does this possibility negatively affect the valuation of the Perp DEXs we invest in?
Our answer is not at all.
Because this is a major issue connected to the fundamental characteristics of onchain markets, censorship resistance,
permissionless access, and how users behave in an unregulated environment. Also, a universal trading platform that is not censored has begun to become more broadly adopted even by retail users.
CEX / DEX It is a different game
Perp DEXs and CEXs play different games. From a long term perspective, not only a short term one, this claim may not be broken.
CEXs must follow rules between countries, and the key is to build at scale so that more people can use them legally. So IPO and licensing are not their choice but a necessity.(Backpack, Kraken, Coinbase)
On the other hand, Perp DEXs are not a business that operates in the traditional sense of a licensed market, and as you already see, they are operating very actively onchain.(Hyperliquid, edgeX)
In other words, Perp DEXs and CEXs are playing different games. The capabilities each requires are different, and the market fit users want can also be completely different.
From that perspective, edgeX is one of the teams that can execute what a Perp DEX needs to do most capably. In recent direct conversations with the founders in Hong Kong, they also know exactly what they need to do.
Why @edgeX_exchange Matters Now
Here, there are two reasons to pay attention to edgeX.
First is the amount of treasury they have already secured as revenue. edgeX recently registered on DefiLlama wallets that have accumulated a treasury of $191.43M in total net profit from last year until now.
https://debank.com/profile/0x74b97d2097d64b4d2a3317d4bda2dab88b80e7ab : $103M
https://debank.com/profile/0xd22fae190736effc8ceb3d8845a5d33ae7805392 : $88M
And as the founder, @edgeX_KF mentioned, this revenue is being prepared to be used entirely for buybacks to support the edgeX token price.
The debate about whether it is a Perp DEX that actually generates revenue has been concluded through onchain fund disclosure. After the Q1 TGE, how this treasury supply affects buybacks will be disclosed through a buyback dashboard.
Second is the partnership and investment news with @circle . Recently, Circle has been seeking new partnerships due to restrictions on interest payments by @coinbase banking caused by the Clarity Act. The destination will be Perp DEXs.
edgeX can be positioned as a native distribution and yield farming channel for USDC, the regulated stablecoin that institutions need the most. In other words, large scale institutional capital is now more likely to use edgeX as needed, and edgeX has been given the authority to manage this.
For better Understanding
If you refer to our previously published insight article about exchange camps, Chinese style exchanges vs US style exchanges, you can gain deeper market insight.
As mentioned in that article, the table is set for them.
Pre-TGE Season
edgeX is currently in its Pre-TGE Season, which effectively serves as the final opportunity to participate with reduced trading costs.
Through fee rebates and point accumulation, users can lower their effective costs while building exposure.
You can calculate your edgeX points and receive rebates directly through ReboundX.
Calculate Your Earnings in @reboundx_net
Calculate the value of the points you have accumulated so far. Our calculator lets you do this with a simple scroll, and it also allows you to build scenarios for edgeX’s potential maximum FDV over time. https://www.reboundx.net/en/perpdex#perpdex-point-calculator
You have to get a Rebate for fee
Using @reboundx_net Payback, you can receive a 30% rebate on trading fees, which effectively lowers your mining cost by 30% for the same trading volume.
And You can also get 10% XP Bonus Multipliers.
If you plan to farm edgeX seriously, do it with ReboundX 30% daily rebate: https://pro.edgex.exchange/referral/MAGON
How to receive the daily rebate is fully explained here: https://x.com/reboundx_net/status/2013942369226551490?s=20
Disclaimer: This research is for informational and educational purposes only and does not constitute financial or investment advice. All opinions are based on publicly available information and subjective analysis at the time of writing and may change without notice. Cryptocurrency trading involves significant risk, including the potential loss of capital. Please conduct your own research and consult qualified professionals before making any investment decisions.
📌 Check out our Website & Socials
Website : https://reboundx.net/en
Twitter : @reboundx_net
Telegram Channel(24/7 CS) : https://t.me/ReboundXnet