An Overview of Perpetual Swaps in DeFi

Quick Take

  • Since their initial launch in 2016, perpetual swaps have exploded in popularity. 
  • Protocols enabling perpetual swaps in DeFi have the potential to increase capital efficiency, improve market transparency, and enable permissionless market access.
  • Providing adequate market depth and performance without compromising decentralization can be achieved through a variety of trade-offs which will be explored in this report.
The original purpose of a futures contract was to stabilize cash flows for commodity producers by allowing them to lock in a sale price for goods not yet produced. Speculators in the market improve liquidity but are faced with the issue of having to roll contracts over before expiration. BitMEX solved this problem with the […]

This report is for Research Members

Join The Block Research for exclusive research like this

Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.

Learn More Already a Research Member? Sign In

Related Reading