00:00An order book perp matches buyers and sellers through a central limit order book, much like a centralized exchange, right?
00:09Rather than pricing trades against a particular liquidity pool, the way automated market makers do,
00:15the next generation of kind of DEXs, including Lighter, Ajax, Paradex, Gravity, which is GRVT and DISC,
00:25achieve kind of a centralized exchange grade speed with kind of a no per trade guess by sort of moving
00:34order matching and doing that off-chain or onto a purpose-built roll-up while settling custody on-chain, right?
00:43So the trade-off is always the same, how much decentralization is kind of surrendered in this process in order
00:51for things to just move pretty quickly
00:53and the latency to custody trade-off grid, which we have created as a tool for you to kind of
01:00measure that for yourself,
01:02kind of matches a venue to what you weigh most in terms of the order of importance when you're doing
01:10your trade.
01:10Because like I said, this next generation of PIP DEXs does not feel like the old DeFi.
01:17It feels more like centralized exchange platforms.
01:20This is why most of the volume is now moving over to those DEXs now, because they can offer instant
01:26fills, real-time orders,
01:29no gas on every trade, tighter spreads, maker rebates, more listings, better active trader tools,
01:36as well as custody and settlement that you are in charge offer.
01:40And it's tied to on-chain systems, which is really a breakthrough.
01:46So this first generation of style of DEXs kind of replaces the old autobook model.
01:54I mean, when we think about the PIP DEXs that was built around AMM-style pools like GMX,
02:01proving that on-chain PIPs can actually work.
02:04But then the AMM PIP model, which is the automated market maker model,
02:09was never perfect for active trading because it came with borrowed fees,
02:13limited listings, oracle-based pricing, and also no true autobook microstructure.
02:20That is fine if you are, you know, for some large trades but less frequent trades.
02:25It's not ideal for our scalpers or market makers, high-volume traders,
02:30or anyone who lives inside limit orders, rebates, and tighter spreads.
02:35You know, so the new DEX is actually like lighter, uses a ZK roll-up infrastructure
02:43to combine that centralized exchange like speed with a stronger verifiability.
02:48You can check out the link to lighter in the description.
02:50EdgeX also, the link is in the description, kind of focusing more on risk-engine survivability
02:56and validity-proof architecture.
02:59Then you've got DEXs like Paradex, which you can find in the description,
03:02and you can get some rebates and discounts on all of these DEXs,
03:07maybe farm-for-points as well, which might end up with you getting some token airdrops.
03:13Paradex itself brings perps and options into one cross-margined derivatives venue,
03:18and Gravity leans into a licensed hybrid model for traders who need more of a compliant trading structure.
03:28And then DESC, it's a frontier newcomer with points farming potential,
03:33previously HMX and Hyperliquid, obviously remaining the benchmark with the most depth in liquidity,
03:41and GMX also still actively trader-focused, but with maybe less depth in liquidity than Hyperliquid.
03:50So I think the big lesson to learn here is that the AMM perp is not dead, right?
03:54Its job is actually just changed.
03:57It remains useful for large, less frequent pool-based execution where zero price impact matters,
04:03but active trading is moving to zero gas, order book DEXs, right?
04:07So the real question, if you're a trader, is not which DEX is actually best,
04:12but a better question, I think, is what trade-off do I want,
04:16based on either speed, custody, listings, depth, cost, compliance, options, stress, points farming,
04:23because every venue gives up something to fill kind of fast,
04:26and that's why we've built this tool, which is the Latency to Custody Trade-off Grid,
04:31so you can measure that for yourself for every particular platform that you want to use.
04:35And I think the future of DeFi perps is not a perfect one,
04:38but it's definitely about helping you find the right venue,
04:42and I think this is going to take over from centralized exchanges.
04:46People want full custody of their funds.
04:48Like, share, subscribe, turn on the notifications.
04:50Check out the full guide down below.
04:52Check out the links to all the platforms so you can get trading.
04:56Happy days. Peace.
05:01Peace.
05:04Peace.
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