“DeFi transaction costs are generally higher compared to CeFi. In 2022, with the collapse of various CeFi crypto trading platforms, DeFi has once again attracted a lot of attention due to its built-in self-custody and transparency. We compared trading 100 on different exchanges The cost of ETH position perpetual contracts and conclude that DeFi perpetual contract trading does not come with high costs.”
In a recent study by Barbon and Ranaldo [1], “On Cryptocurrency Market Quality,” they found that DeFi spot trading is accompanied by high transaction costs, which need to be weighed against the risks and delays involved in delegated custody on CEXs. However, is this a necessary trade-off for perpetual contracts?

“In the industry, AMMs are often compared to capital inefficiency. To intuitively feel the difference between the two, we compared the transaction cost rankings of DeFi and CeFi perpetual contract exchanges that use AMM or order book systems to trade 100 ETH. Combined with the ranking of liquidity provider funds in the system, the final conclusion is that the capital efficiency of perpetual AMM is not low.”

In our recent Medium article, we found that DeFi perpetual contracts are not necessarily more expensive than CeFi perpetual contracts. However, does this mean that AMM liquidity providers have greater capital requirements than market makers provide for an order book-based system?

"D8X solves the common problems of perpetual futures - such as high transaction costs. Through its unique pricing mechanism and risk management strategy in DeFi, it deeply believes that institutional professionalism and decentralization can go hand in hand."

Most people in finance have heard and laughed at Murphy's Law: whatever can go wrong will go wrong, and the opposite law has emerged: Yhprum's Law. If you look closely at this strange "word" for a minute or two, you'll notice that it's actually just the word "Murphy" written backwards, so there's nothing fancy about it in terms of innovation. Yhprum's law means that whatever may work must work. Thinking on the bright side of things, it shows that often problems arise when no one is paying attention, and the mere act of trying to prevent them from happening can ensure that they don't happen.

D8X received support from well-known VCs such as Polygon Ventures, Axelar Network, and Swissborg Ventures in its Pre-seed round of financing.

D8X is an institutional-grade decentralized exchange (DEX) protocol focused on providing services for derivatives on Polygon zkEVM. It completed a US$1.5 million Pre-seed round of financing in August 2023. This round of financing was led by Polygon Ventures, with participation from Axelar Network, Swissborg Ventures, Cogitent Ventures, Veris Ventures, G1 Ventures, Pragma Ventures, CryptoDiscover, SuDo Research, and Block Consult. The funds raised will help D8X officially launch its decentralized derivatives trading platform in the second half of 2023, providing a white-labeling solution for trading partners seeking to enter a strong derivatives market.

“We employ established TradFi derivatives pricing theory to derive an AMM automated market making strategy. This article explores the historical roots of the technology and shows how we apply it to market making. With the resulting pricing mechanism, if the AMM remains Balanced, traders will face lower slippage. If AMMs are exposed to risk, slippages will increase and traders will be incentivized to hedge their net AMM exposure.”

Merton's bond pricing model (Merton, 1974) assumes that the company has a certain amount of debt with maturity T. If the value of the company's assets at time T is less than the face value of its debt, the company will default. In this model, the firm's equity is a European call option on the firm's assets with an exercise price equal to the face value of the debt. This model can be used to estimate the company’s default probability, just like the KMV Merton model commercialized by Moody’s Company [Bharat, Shumway, 2008], and can also be used to price the company’s credit risk debt [Moody’s, 2022].

1. Many applications such as #DODO , #SpaceID , and Element have achieved significant growth in the past 24H. Among them, DODO topped the list with 29,470 DAU.

2. A counterfeit currency under the name of "#SUI" appeared on #PancakeSwap, and the daily transaction exceeded 40 M. Users should carefully evaluate the risks before making investment decisions to ensure that they make prudent and thoughtful investment choices in the end.