Despite executing 179,000 transactions during its first month of operation, Perpetual Protocol, powered by xDai, spent only $183 on gas tariffs.
Perpetual Protocol, a DeFi project offering decentralised perpetual contracts using Ethereum’s xDai layer two scaling solution, has become the sixth largest DEX by weekly trading volume after trading for just one month.
According to Dune Analytics data shared by Perpetual Protocol, the weekly DEX trading volume of over $299 million would place the project above Synthetix, dYdX and Kyber, and below Balancer.
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The milestone was shared in a blog post celebrating the Immediate Edge app project’s first month of operation, a period in which DEX generated over $500 million in total volume and generated over $500,000 in trading fees.
All trading fees generated by the protocol are currently sent to an insurance fund designed to insure the protocol, and the project plans to divert 50% of the fees to PRSP participants once their staking pool is launched.
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In the blog post, Perpetual Protocol noted that it spent only $183 to execute 179,000 transactions, as the gas rates on xDai are only one-hundredth of those on the Ethereum’s mainnet. With Perpetual Protocol covering its traders‘ gas rates, DEX would have had to pay $18,300 in fees if it were trading directly at Ethereum.
XDai is one of several L2 scale-up solutions that offer an alternative to the high rates associated with trading directly on the Ethereum mainnet, and Synthetix recently launched the first stage in its transition to optimistic roll-ups.
Looking ahead, Perpetual expects to introduce limited order functionality during the first quarter of 2021, and will also launch staking in February.
Decentralised exchanges emerged as a cornerstone of the crypto ecosystem during DeFi’s Q3 2020 boom, with Uniswap’s leading DEX now processing nearly a billion in volume each day and regularly outperforming many major centralised exchanges for trading activity.
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Despite the booming volume, the DEX sector is currently dominated by a handful of platforms, with approximately half of the combined DEX trading activity taking place at Uniswap and 90% of the combined volume on the four largest platforms.