dYdX is getting ready to bring perpetual futures to the prediction markets

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dYdX, one that decentralized, plans to launch perpetual futures contracts on prediction markets as part of efforts to distinguish itself from centralized trading platforms and attract more users to decentralized finance.

Charles d’Haussy, CEO of the dYdX Foundation, revealed that they are working to allow users to place leveraged bets on the outcomes of binary events through perpetual futures contracts. According to d’Haussy, decentralized finance (DeFi) needs to offer unique products to differentiate itself from centralized platforms. The director also argues that prediction markets could give DeFi a new opportunity to regain attention. This move to prediction markets is part of the upcoming dYdX Unlimited update expected later this year.

dYdX unlimited

The dYdX Unlimited upgrade will introduce several new features, including permissionless market listings and a main liquidity pool called MegaVault. Users will be able to propose listing any market on the dYdX chain, with the protocol actively maintaining the price and market parameters. The community is already experimenting with a currency exchange pair linked to the Turkish Lira.

To facilitate liquidity for new markets, users launching them will deposit a government-determined amount of USDC stablecoins into MegaVault. This vault will then quote the orders and provide instant liquidity. Users can also earn passive income by depositing USDC into the vault, which will decide where to allocate the liquidity.

While dYdX’s trading volume in August reached $21.2 billion, it still lags behind centralized venues. Moving into prediction markets, where platforms like PolyMarket saw more than $450 million in volume last month, could help dYdX capture more market share. The exchange is also exploring other markets, such as foreign currencies and indices, as it seeks to expand its offerings and attract a wider range of traders.

In July, Crypto Briefing described how dYdX was in talks to sell its derivatives trading software to several crypto market makers.

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