Introducing DTX: a trading eden for DeFi degens

DTX
5 min readFeb 22, 2024

DTX is a decentralized perpetual exchange built on Blast L2, offering users access to over 100 crypto assets with up to 100x leverage. Our mission is to revolutionize the trading experience by providing a secure and user-friendly platform that opens up access to a diverse range of crypto assets.

With a commitment to community, we give back by offering 100% Blast token airdrops and providing full refunds for gas fees. Join us on this exciting journey as we reshape the landscape of decentralized trading.

The testnet is currently live — check it out at https://testnet.dtx.trade. Mainnet is coming soon!

The Promising Future of Perp Dex

The on-chain derivatives market holds immense growth potential, driven by the unstoppable rise of DeFi. As decentralized finance continues to gain traction, more individuals are seeking opportunities to participate in this dynamic market. At DTX, we firmly believe in the potential of DeFi and are dedicated to providing a wide range of markets and a seamless trading experience. With the advent of blockchain technology, we are witnessing the democratization of finance, where anyone can engage in trading and investment activities with greater accessibility and control over their assets.

Why Oracle-based vAMM

When it comes to designing decentralized perpetual protocols, various models have been explored, including order book systems, automated market makers (AMMs), and request for quotation (RFQ) systems.

Order book systems, while popular in centralized exchanges, face limitations in the decentralized context. They require higher computing power and are not quite suitable for the decentralized world. Additionally, they suffer from fragmented liquidity and high slippage, which limit trading options and liquidity.

AMMs leverage existing spot liquidity for efficient price discovery and offer broader market access by enabling trading of all assets with local liquidity. However, because lender capital has to be heavily incentivized, leverage is largely limited (< 10x), and there is no easy way to work around this limitation.

RFQ (Request for Quotation) systems are clever solutions that excel in limited liquidity scenarios, such as bespoke block trades. However, as a general-purpose solution, RFQs suffer from certain drawbacks. The opacity of RFQ systems and the inherent asymmetry between makers and takers can lead to centralization, as makers have more information and bargaining power. Moreover, RFQs are not ideal for primary price discovery due to their limited throughput and lack of transparency, making them less suitable for building a comprehensive and vibrant trading ecosystem.

In contrast to these limitations, the oracle-based vAMM model chosen by DTX offers distinct advantages, such as high leverage, predictable trade slippage, and guaranteed order execution. This model has been an innovative market response and has gained traction with considerable daily volume.

DTX has carefully considered the limitations of the oracle-based vAMM (Virtual Automated Market Maker) model and has made innovative designs to extend the asset range, improve capital efficiency, and mitigate potential manipulation risks.

Liquidity on DTX

DTX recognizes the challenges of providing altcoin trading through liquidity pools. To address these challenges, DTX introduces a unique oracle-based solution with two sets of liquidity pools that cater to different risk profiles. These liquidity pools are designed as single-asset vaults following the ERC4626 standard.

  • Standard Pools: The first set of liquidity pools comprises the standard pools that support leverage on BTC and ETH. These pools allow users to trade and provide liquidity for these major cryptocurrencies, enabling leveraged trading opportunities while maintaining liquidity and stability. The standard pools focus on supporting less volatile markets and aim to generate moderate yield for liquidity providers.
  • Altcoin Alpha Pool: In addition to the standard pools, DTX introduces the altcoin alpha pool, which supports all other altcoin markets. This pool is specifically designed to provide liquidity for a diverse range of altcoins. While the altcoin alpha pool may be more volatile, it generally generates higher yield, offering liquidity providers the potential for increased returns.

By offering these different liquidity pools, DTX aims to greatly improve capital efficiency and maximize yield while incorporating risk mitigation measures to protect liquidity providers. This ensures a robust and sustainable trading environment for all participants.

What Can I Trade

DTX is committed to expanding its market offerings beyond traditional assets and spot markets. Currently, DTX supports trading across 125 crypto markets, providing a wide range of trading opportunities for users. However, DTX’s vision extends beyond the current market offerings, and the platform is actively looking to expand its market selection in the future.

DTX recognizes the importance of staying at the forefront of market trends and embracing innovation. By supporting a diverse range of assets and actively seeking to expand its market offerings, DTX aims to provide traders with a comprehensive and dynamic trading ecosystem. Through continuous market expansion and innovation, DTX strives to offer cutting-edge trading opportunities and drive the advancement of decentralized perpetual trading.

Other Innovations

DTX introduces two innovative features that enhance user experience and foster community engagement within the decentralized perpetual trading ecosystem.

  1. NFTs as Sub-Accounts: DTX revolutionizes sub-accounts by integrating NFTs as the gateway to trading. Users mint a DTX NFT pass, which acts as a sub-account, binding all on-chain data. This unique approach offers flexibility and two key advantages. Firstly, it enables the transferability of assets, including positions and platform benefits, fostering a dynamic secondary market for NFT trading. Secondly, it allows for further collateralization, empowering users to leverage their assets and access additional liquidity. This innovative feature enhances the trading experience, maximizing the potential of users’ holdings.
  2. Copy Trading: DTX prioritizes community engagement and knowledge sharing in the decentralized trading ecosystem. Collaborating with communities and building social connections, DTX aims to create a vibrant network where traders can connect, share insights, and learn from each other. In the future, DTX plans to introduce a copy trading feature, allowing users to replicate trades and gain valuable insights from experienced traders. This upcoming feature will provide a valuable learning opportunity for novice traders while fostering a sense of community and collaboration. DTX’s inclusive environment and focus on knowledge sharing empower traders at all levels to thrive in the world of on-chain perpetual trading, fostering growth and success together.

Join the Community

Ready to dive into the world of decentralized perpetual trading? Join the vibrant DTX community today! Engage with like-minded traders, gain valuable insights, and unlock exciting opportunities.

Join our Discord for dynamic discussions, knowledge sharing, and real-time support. Follow us on Twitter for the latest updates, market analysis, and trading tips.

Together, let’s shape the future of decentralized trading and redefine the crypto landscape.

Join the DTX community now and embark on a journey of innovation, growth, and success!

Website | Twitter | Discord | Telegram | Medium

contact: contact@dtx.trade

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