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Decentralized platform dYdX will launch perpetual Bitcoin contracts

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dYdX, a decentralized finance lending (DeFi) platform, is in the process of launching a market for Bitcoin perpetual contract trading.

First reported by The block On Monday, the DeFi platform already launched the alpha version of the upcoming derivatives market.

Perpetual contracts have become very popular crypto derivatives. Although similar to traditional futures contracts, perpetual contracts do not have an expiration date, which means that traders can keep them as long as they want.

Derivatives giant BitMEX was the first to introduce Bitcoin perpetuities in 2014, but soon other major exchanges also listed such contracts due to high market demand.

According to the company, this is the first perpetual exchange on a decentralized platform and also the first dYdX offering of a non-Ethereum asset.

DYdX's Bitcoin perpetual contracts will offer leverage of up to 10 times and will be settled in USDC, a stable currency pegged to the USD. The decentralized platform will also run a separate order book from all of its existing Ethereum markets.

Increased demand for DeFi platforms

dYdX is one of the main DeFi platforms with a blocked value of $ 22.8 million, according to DeFi Pulse, at the time of publication. The platform has also issued $ 1 billion in loans since its launch.

The platform is backed by known names like a16z, Polychain, and 1confirmation, raising $ 12 million.

DeFi's platforms have created quite a stir lately and are considered the true disruptor of the traditional financial market. However, these platforms still have massive vulnerabilities, both in design and security.

Recently, $ 25.9 million was mined from dForce, a Chinese DeFi platform, in 24 hours, leaving just $ 6 in assets. Another DeFi platform, bZx, was attacked multiple times, raising important questions about the security of these platforms.

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