Perpetual contracts are still growing at a fast pace with the rapid development of DeFi. However, liquidity fragmentation and high gas fees remain significant issues. Layer 2 solutions are stepping up to address these challenges, offering the potential for a leaner and more efficient market.
Although not directly involved in one of its projects, there has been growing interest in the LogX Network this year, which is building a fully-fledged Layer 2 platform engineered specifically for perpetual contract trading. It is designed to aggregate liquidity from different chains, providing traders with access to more markets and potentially narrower spreads.
In addition to its utility in trading, the native token is expected to be used for governance, gas fees, and eventually revenue sharing. With listings on the horizon, it will be interesting to see how the utility and value of this token develop.
This targeted Layer 2 solution could be exactly what is needed to unlock the full potential of decentralized perpetual trading. Don't you think?
Fast growth of perpetual contracts in DeFi speaks to the quest for better ways to address challenges like financial sharing. and greater gas fees Layer 2 solutions like LogX Network can indeed make a difference by elevating performance and enhancing readiness for market participation. Pooling revenue across networks boosts business opportunities. and reduces costs for operators.
Widespread use of utility tokens for governance and revenue sharing provides another incentive for joining in. which can continue to grow continuously if done correctly This can really unlock the potential of a permanent business. and it helps the entrepreneur have a permanent business. It will be interesting to see how the market responds to such developments and how LogX positions itself in stiff competition.
I think current L2 already sufficient for perpetual trading, no need to create more L2 because then capital will be spread and it will not solve the problem relating liquidity.
what any decentralized perpetual trading platform need is interoperability between many chains, possibly leveraging on the interoperability across blockchain offered by omnichain protocol such as layerzero, hyperlane and other.
the only platform that I know that's decentralized, on chain, and have enough liquid to make future trading comfortable is hyperliquid with 1 billion dollar 24h volume and liquidity matters a lot if you trade future or perpetual
but there are certainly some other platform out there that might be worth trying though with significantly lower liquidity.
You actually present a very strong case as to where more 2-solutions layered on top of things would create the pitfall where one would reduce investment, not efficiency. In fact, in such a distributed permanent business collaboration is very important. Leverage protocols such as LayerZero or Hyperlane that help facilitate transactions across networks. Helps out with better cash management.
Hyperliquid's strength in finance and trading volumes really highlight how important it is as a strong platform in this space if existing L2s can successfully integrate these interoperability solutions, they may well be set up to run a permanent business without needing any additional layers around them-that's an interesting area to watch as the focus shifts to better financial management and cross-chain capability development.
