The decentralized finance (DeFi) landscape continues to evolve at a rapid pace, with perpetual decentralized exchanges (DEXs) emerging as one of the most dynamic sectors. Among the growing number of platforms, dYdX, GMX, and gTrade stand out as leading contenders in the race to dominate the future of decentralized derivatives trading.
Each platform brings a unique approach to on-chain perpetual futures trading—offering different models for risk management, asset availability, user experience, and tokenomics. In this analysis, we’ll break down their core strengths and weaknesses to help you understand which might be best suited for your trading strategy or investment thesis.
Asset Availability and Synthetic Exposure
One of the first factors traders consider is the range of available assets.
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dYdX and gTrade support synthetic asset exposure, meaning they can list a wide variety of markets—including cryptocurrencies, forex pairs, and even stock indices—by leveraging price feeds from oracles. This flexibility allows them to offer diverse trading options beyond just crypto-native assets.
In contrast, GMX currently restricts trading to assets within its GLP (Generic Liquidity Provider) pool. While this limits initial asset diversity, it also creates a tightly controlled risk environment where all positions are backed by real liquidity.
However, there’s promising news on the horizon: GMX is actively developing a PvP (peer-to-peer) AMM model that will introduce synthetic exposure. Once live, this upgrade could significantly expand GMX’s market competitiveness by combining deep liquidity with broader asset support.
From an accessibility standpoint, dYdX and gTrade currently hold the advantage, but GMX’s roadmap suggests it may close the gap soon.
Risk Management and Protocol Resilience
In volatile markets, risk management isn’t just important—it’s existential. A poorly managed perpetual DEX can face insolvency if large trader gains aren't properly offset.
Funding Rates: Balancing Longs and Shorts
Both dYdX and gTrade employ funding rate mechanisms, which help balance long and short positions. When longs outnumber shorts, long-position traders pay funding fees to those holding shorts (and vice versa). This incentivizes equilibrium and prevents excessive skew in open interest.
While effective for stability, funding fees cut into trader profits—especially for those maintaining long-term positions.
GMX, on the other hand, does not charge funding fees. This is a major draw for traders seeking cost-efficient, carry-free positions. However, to mitigate risk without funding mechanisms, GMX caps short positions at 50% of the GLP pool value, limiting downside exposure.
Loss Absorption Models
Each platform handles unrealized profit-and-loss (PNL) differently:
- dYdX maintains an insurance fund (currently valued at $15 million) that absorbs losses when traders realize positive PNL during liquidations.
- GMX ties trader outcomes directly to the GLP token price: trader losses increase GLP value (as collateral flows into the pool), while profits decrease it.
- gTrade passes risk onto GNS token holders. The protocol burns GNS when covering losses and mints new tokens when compensating for gains—making GNS price partially dependent on net trader performance.
This means investing in GNS involves not just platform success but also trader behavior—a unique but potentially volatile dynamic.
Tokenomics and Investor Value
For investors evaluating long-term potential, token fundamentals matter. Let’s examine key metrics using:
- FDV (Fully Diluted Valuation)
- P/E Ratio (Price-to-Earnings) — calculated as FDV divided by annualized protocol revenue. Lower ratios suggest better value.
| Platform | P/E Ratio |
|---|---|
| dYdX | 9.4x |
| Gains Network | 12x |
| GMX | 32.2x |
Based on P/E alone, dYdX appears undervalued relative to its earnings, making it attractive from a fundamental investing perspective. However, valuation must be weighed against revenue distribution.
Currently, only GMX distributes income to token holders—30% of platform fees go to GMX stakers and 3% to GLP providers. This yield-driven model supports its higher P/E ratio. Meanwhile, dYdX and gTrade plan to initiate fee-sharing mechanisms by the end of 2025.
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If you're focused on passive income today, GMX leads the pack. But if you're betting on future cash flow distribution and lower entry valuation, dYdX offers compelling upside.
User Experience and Ecosystem Incentives
A powerful backend means little without an intuitive front-end.
dYdX – The Polished Professional
dYdX boasts the most refined interface among the three—clean layout, advanced charting tools, and low-latency execution. It also runs regular trading competitions with substantial prizes in cash and NFTs. Additionally, users earn dYdX token rewards simply for trading, enhancing engagement and retention.
GMX – Simplicity Meets Efficiency
GMX offers a minimalistic yet functional UI. Its standout features include zero-slippage trades and no funding fees—key advantages for active traders. Users can also earn discounts via referral codes, encouraging community-driven growth.
gTrade – Expanding Beyond Crypto
gTrade differentiates itself by allowing trading not only in crypto but also in forex and stocks—a rare feature in DeFi. While its UI is less polished than dYdX’s, its ambitious roadmap signals intent to become a multi-market decentralized broker.
Frequently Asked Questions (FAQ)
Q: Which perpetual DEX has the lowest trading fees?
A: GMX typically offers lower effective costs due to zero slippage and no funding fees, though exact fees depend on network congestion and position duration.
Q: Can I trade traditional assets like stocks on these platforms?
A: Only gTrade currently supports synthetic exposure to forex and stock indices. dYdX and GMX are crypto-only for now.
Q: Is my money safe on these DEXs?
A: All three use non-custodial models—your funds remain under your control. However, smart contract risk exists. dYdX uses a permissioned validator set (StarkEx), while GMX and gTrade are fully on-chain with audited codebases.
Q: Do these platforms offer leverage?
A: Yes—leverage ranges from 5x to 50x depending on the platform and asset.
Q: How do I earn yield on my holdings?
A: On GMX, you can provide liquidity via GLP or stake GMX tokens. dYdX will introduce staking soon. gTrade rewards come indirectly through GNS buybacks and burns.
Q: Which is best for beginners?
A: dYdX offers the most user-friendly experience with educational resources and rewards programs ideal for newcomers.
Final Thoughts: The Race Is Just Beginning
While it's still too early to declare a winner in the perpetual DEX space, each platform has carved out a distinct niche:
- dYdX: Best-in-class UX with strong fundamentals and upcoming staking.
- GMX: High-yield opportunities and innovative zero-slippage trading.
- gTrade: Unique cross-market access with ambitious expansion plans.
The next phase of growth will likely hinge on scalability solutions, cross-chain integration, and sustainable incentive models.
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As adoption accelerates and technology matures, the line between centralized and decentralized derivatives will continue to blur. For now, informed users have more choices than ever—and that’s a win for decentralization.