DEX Perp Asset Pricing Models

The pricing structure reflects the supply and demand of assets/tokens and has many different mechanisms:

Oracle Model: Get prices from major exchanges (eg GMX uses Chainlink's oracle).

Advantages: Low cost.Disadvantages: Depends on external data, has the risk of price manipulation.

vAMM (Virtual AMM): Based on long/short behavior, not based on real pools.

Advantages: Allows high leverage.Disadvantages: Susceptible to slippage, complicated in calculation.

Off-chain Orderbook + On-chain Settlement: Matching orders off-chain, settling on-chain (eg dYdX).

Advantages: Improves speed, reduces asset management and MEV risks.Disadvantages: Not completely on-chain, may encounter server problems.

On-chain Orderbook: Matching orders and settling on-chain.

Pros: Decentralized, highly secure. Cons: Performance and liquidity can be low if not optimized.

Viewpoint

DEX Perp has the potential to increase market share compared to CEX due to its decentralization and reduced KYC regulations.