Perp DEX wars 2.0
There has been a lot of debate around perp DEXs recently, specifically because of the Hyperliquid v Aster conversation, and we wanted to analyse the top perp DEX platforms by trading volume, to see how they differ from one another. Our purpose isn’t to eventually pick a ‘winner’, but to answer some pertinent questions about them.
What’s this new debate on Hyperliquid v Aster?
The current debate around Hyperliquid vs Aster comes down to two very different paths to prominence in the perp DEX space. Hyperliquid rose through 2024-25 by building a custom Layer-1 with a fully on-chain order book, sub-second finality, and the promise of CEX-like execution in a decentralized wrapper, helping it dominate volumes and open interest as traders migrated from GMX and dYdX. Aster, by contrast, launched later on BNB Chain with hidden orders, yield-bearing collateral, and aggressive airdrop-driven incentives, quickly seizing headlines when it briefly surpassed Hyperliquid in daily volume and saw open interest spike. Adding fuel to the fire were endorsements and influencer attention (CZ as an advisor, MrBeast controversy), which amplified perceptions that Aster might be a credible challenger. The question now is whether Hyperliquid’s performance moat or Aster’s attention-and-incentives engine will prove more durable in sustaining real liquidity and trader retention.
Haven’t we had perp DEX wars already?
Yes, the first perp DEX wars played out in 2022-23 between dYdX and GMX, two protocols that also had different approaches. dYdX used an order book model, initially with off-chain matching, and later migrating to its own Cosmos app-chain in v4. GMX popularized the AMM-style GLP vault, where liquidity providers back trades directly. The rivalry generated a lot of buzz, but eventually it cooled as neither model fully solved for speed, capital efficiency, and scale. dYdX spent much of its time and energy on the v4 migration, while GMX worked through issues of oracle pricing and risk management in its v2 upgrade. Both remain important players, but neither created a lasting moat, which is why newer entrants like Hyperliquid leapfrogged them with faster, more transparent, and more scalable designs.
So has anything changed with this new iteration?
This time, the new wave of perp DEXs is combining CEX-level performance with on-chain credibility in ways the earlier generation didn’t. Hyperliquid’s custom Layer-1 with a fully on-chain Central Limit Order Book (CLOB) is capable of sub-second matching, addressing the latency and Miner Extractable Value (MEV) concerns that limited dYdX and GMX. Drift on Solana introduced a hybrid liquidity design (DAMM + DLOB + JIT auctions) that balances capital efficiency with fairer execution, while Avantis is expanding the scope of perps beyond crypto into FX and commodities. Aster, meanwhile, has shown how aggressive incentive design and novel features like hidden orders can capture attention quickly. edgeX, built on StarkEx as a zk-rollup order book, emphasizes depth and fee efficiency while deliberately running without a token, making it stand out for both transparency and sustainability. Lighter, another zk-rollup design, experiments with verifiable matching and low-fee points-driven adoption. The new entrants clearly outperform earlier models on speed, product design, and UX, but they still face open questions on the sustainability of liquidity and long-term governance, which the previous leaders also struggled with.
A comparison of the highest volume perp DEXs
Hyperliquid, with its fully on-chain CLOB and sub-second finality, is positioned as the safe, fast, deep liquidity baseline. Hyperliquid is friendlier towards quant traders, with both performance and liquidity stronger than Aster. Aster’s Pro mode has hidden orders/anti-MEV, suitable for capital that does not want to expose orders and direction. One potential reason for the shift towards Aster may be Aster’s offering of between 100x and 300x leverage. HyperLiquid’s markets are mainly capped at 40x.
Lighter and edgeX are newer challengers trying to differentiate beyond what Hyperliquid and Aster already offer. Lighter is building a zk-powered perp DEX with verifiable matching and liquidations, and it has teased a zero-fee model during its beta/points phase. Its approach is to minimize trust, and even the matching engine is provable at the cost of complexity and heavy reliance on incentives. edgeX is a more under-the-radar technical entrant. It is built with StarkEx/zk-rollup order book design aims, backed by Amber, and strong emphasis on engineered liquidity and low fees. Many comparative roundups list edgeX alongside Aster and Lighter in the upcoming roster of next-gen perp DEXs. edgeX doesn’t yet enjoy the same visibility, but its technical architecture and backing suggest it is trying to compete on depth and lower protocol overhead rather than pure hype.
While Aster has grabbed headlines by briefly overtaking Hyperliquid in daily volume, many analysts point out that their open interest (OI) as a percentage of trading volume (TV) doesn’t match up to Hyperliquid’s. As of 2nd Oct ’25, for the OI/TV metric, Hyperliquid is at 1.34, Aster at 0.04, Lighter and edgeX are both at ~0.22. The OI/TV ratios of Hyperliquid’s competitors raises doubts about the legitimacy of their trading statistics. A few folks have debunked the Wash trading allegations against Aster, however, the skepticism remains. Since Aster has an ongoing points program, it is possible that users are farming in hopes of an airdrop.
Hyperliquid is the only one whose OI/TV ratio is comparable to CEXes like Binance, OKX, and Bybit. This points to much of the volume and open interest on Hyperliquid coming from organic activity. Hyperliquid’s native stablecoin, USDH, also gives it a significant advantage over its competitors. Issued by Native Markets, USDH is backed by cash and US Treasuries. In addition to reducing Hyperliquid’s dependency on USDC, which currently powers 95% of Hyperliquid’s activity, USDH captures revenue from the reserves backing the asset. Fifty percent of these yields fund HYPE buybacks and ecosystem growth, further offsetting some of the unlock pressures.
Details about each project can be referenced in the table below:
If you want to delve deeper into this specific topic, you can read some of these articles: 1, 2, 3 and 4.
Ultimately, we believe users of DEXs are very willing to try out new platforms if it means they get better fees, leverage, and execution. As we saw with LetsBonk.fun and Pump.fun earlier in the year, it is very possible to challenge the sectoral leader when it comes to a crypto-native user base. With Hyperliquid’s OI/TV ratios showing an established trust base and some credible emerging challengers, the rapid innovation in perp DEXs has made it a very interesting sector, to be closely watched as more and more of the world’s financial markets start trading on-chain.
Project Spotlight
Quboid
Customer loyalty today is broken. Billions of dollars worth of points sit idle, unredeemed, and unmonetized. Brands spend heavily on rewards programs that don’t significantly move the needle, while customers remain disengaged, leading to rising customer acquisition costs and wasted marketing spend. The opportunity isn’t in creating more points, but in unlocking their liquidity and building network effects across brands.
Quboid is a full-stack loyalty platform that turns idle points into revenue with AI-driven orchestration and a cross-brand rewards network. Its system converts dormant loyalty balances into instantly usable currency, boosts retention with personalized campaigns, and slashes acquisition costs by enabling brands to tap into each other’s customer bases. With Qurious AI providing automated insights and campaign optimization, brands can identify hidden revenue opportunities, launch programs without integration delays, and amplify reach across 50+ partner ecosystems.
Quboid’s long-term vision is to make loyalty points as liquid and interoperable as cash, creating a network where rewards flow seamlessly between brands, customers receive tangible value, and marketers finally get measurable ROI from their loyalty budgets. You can explore more at qubo.id, or find them on X.
MARKET NEWS
- As expected, the U.S. Federal Open Market Committee (FOMC) lowered the benchmark federal funds rate by 25 basis points (bps) to a range between 4% and 4.25%, by a vote of 11-1. Crypto markets reacted modestly, suggesting the move was largely priced in.
- U.S. President Trump signed the GENIUS Act into law, establishing the first U.S. federal framework for dollar-pegged stablecoins. It mandates full reserve backing, disclosure, regulatory licensing and places stablecoin oversight under banking regulators. Its critics flagged implementation challenges, foreign issuer access, and global monetary impact.
- In Q3 2025, the U.S. House of Representatives passed the Digital Asset Market Clarity Act by a strong 308-122 vote, marking a major milestone for comprehensive crypto regulation. However, the Senate is now drafting its own, broader market-structure bill that is expected to take precedence, much like how the GENIUS Act on stablecoins moved through earlier.
- The U.S. Securities and Exchange Commission said it ended its case accusing Ripple Labs of selling unregistered securities, leaving a $125 million fine intact and ending one of the cryptocurrency industry’s highest-profile lawsuits.
- Google released an open-source payments standard to let AI agents send and receive money, including U.S. dollar-pegged stablecoins, as tech giants push toward machine-to-machine commerce.
- Nasdaq is pushing for permission to allow tokenized versions of listed stocks and ETFs to trade on the same order book as their traditional counterparts. This is a first-of-its-kind push that could bring blockchain-based settlement into the U.S. market system as soon as Q3 2026 if approved.
- Coinbase’s planned $2 billion private convertible note offering was heavily subscribed and subsequently upsized to $2.6 billion, raising approximately $2.56 billion in capital, with an option for an additional $400 million.
- In partnership with oracle protocols Chainlink and Pyth Network, the U.S. Department of Commerce brought six key indicators from the Bureau of Economic Analysis onchain for the first time, enabling use cases in DeFi, prediction markets, and tokenized assets. It includes real GDP, the PCE Price Index, and real final sales to private domestic purchasers.
- Samsung is expanding its partnership with Coinbase to let U.S. Galaxy smartphone users fund their Coinbase accounts with Samsung Pay, while also pushing a Coinbase One promotion through Samsung Wallet.
- Ondo has launched more than 100 tokenized U.S. stocks and ETFs onchain, starting with Ethereum. Available to qualifying users, Ondo Global Markets plans to expand this to 1,000 tokenized securities by year-end and to offer BNB Chain and Solana support soon.
- Tether unveiled USAT, a stablecoin designed to be US-regulated, dollar-backed, and a complement to USDT. The token will be issued by crypto infrastructure firm Anchorage Digital, and Tether plans to launch it by the end of the year.
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Warm Regards,
Woodstock Team
Disclaimer and Risk warning:
Every financial product, asset class, or investment has a risk. A digital asset (also known as digital tokens, digital coins, or crypto(s)) is no different. That is why the readers need to be aware of the potential risks present in digital assets and blockchain projects. You should not invest funds in the digital assets market that you are not prepared to completely lose; i.e., only allocate risk capital to digital tokens. Woodstock Funds may or may not hold investments in projects we talk about in our newsletters or blog posts. The newsletters and blog posts are for information purposes only and should not be considered any form of investment, financial, or legal advice. Furthermore, we will not accept liability for any loss or damage that may arise directly or indirectly from any content covered in our newsletters and blog posts.
