As per the best-in-class research report producer Nansen Research, Cosmos, and dYdX v4 are set to redefine the DeFi derivatives landscape. Nansen Research stated in its report that the perpetual trading platform dYdX’s trading volume surpasses that of other major DeFi DEXs (decentralized exchanges), and could even compete with that of CEXs.
Nansen Research tweeted the release of the report titled “dYdX v4: Redefining The DeFi Derivatives Landscape” on June 22 to share key findings:
🔥 With Cosmos and v4, @dYdX team believes they can greatly increase its throughput, achieve decentralization of all aspects of the protocol, and greatly improve its tokenomics.@JakeKennis @0xomok shared a few key findings 👇 pic.twitter.com/RRJ5DHKzhw
— Nansen Research (@nansen_research) June 23, 2023
As per Nansen Research, dYdX’s average monthly derivatives volumes (since December 2022) go beyond that of Deribit, Kraken, and Bitfinex. Nansen Research proclaimed that dYdX is yet to surpass the largest derivative CEXs, such as Binance, OKX, Bitget, and Bybit. The firm shared a derivatives market share comparison of dYdX against 10 selected CEXs from December 2022 to the present.
dYdX is striving to tap into the market now, as it has reportedly opted for the internet of blockchains, Cosmos stack to fuel its protocol decentralization. In doing so, dYdX aims for delivering top performance, as it builds a top-performance product with UX (user experience) on par with the top CEXs (centralized exchanges).
Further, Nansen Research noted in a tweet that currently, dYdX bridge depositors seem to be highly distributed, signaling that there is still value in trading on dYdX. The top 100 depositor addresses reportedly account for over half of the deposits, as per the graph below:
According to Nansen Research, dYdX v4 is an ambitious step intended to bring dYdX’s aims of delivering competitive UX and products with blockchain technology to fruition. In related news from Nansen Research, a series of trends geared towards perceiving security and financial stability as solutions of growth in 2023 for CEXs are emerging. The report revealed that major centralized exchanges are now being evaluated on their trading volume, reserves transparency, functions, and legal areas.
