Delphi Daily

Regardless of what stats you look at, it’s clear that perpetual contracts are the most popular trading product in crypto. As a refresher, a perpetual contract is a special type of futures contract (futures are a contract between two parties to buy or sell an underlying asset at a specific date for a predetermined price in the future). As the name suggests, perpetual contracts go on “forever” and do not come with an expiry date. Instead, perpetual swaps allow traders to take highly leveraged positions with minimal upfront capital. Pioneered by Bitmex in 2016, Bitcoin perpetual contracts are now traded on every centralized derivatives exchange. It’s been a long time coming…but this week, decentralized perpetual contracts were finally introduced to the market. 

 

On Monday, the non-custodial exchange dYdX launched perpetual contract markets that enable the trading of any non-Ethereum based asset. The first market they’ve gone live with in a private Alpha was BTC-USDC (unfortunately not available for US investors). For the first time ever, someone can get up to 10x leverage on BTC from a non-custodial decentralized exchange.

 

Why is this important? For a few different reasons. Centralized alter

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