What is a perp DEX in crypto?

A perp DEX is a decentralized exchange built for perpetual futures, often called perps. Traders deposit collateral, usually a stablecoin, and open long or short positions on crypto prices, often with leverage. The exchange runs on a blockchain or smart contracts rather than through a company that holds customer accounts.

What is a perpetual future?

A perpetual future is a futures contract with no end date. BitMEX launched the first one, for bitcoin, on May 13, 2016. Because it never settles, it needs another way to stay tied to the real price. That is the funding rate, a regular payment that flows from longs to shorts when the contract trades above spot and the other way when it trades below.

Leverage means a small move in price can wipe out the margin. A position that falls below the maintenance level is closed automatically, as described in what happens if you get liquidated.

What is a perpetual DEX and how does it work?

Perp DEXs differ mainly in how they match trades.

• On-chain order books. Hyperliquid runs its own layer 1 blockchain, where orders, cancellations, trades and liquidations are all recorded on-chain and final within one block, according to its docs.
• Pool-based models. On GMX, liquidity providers deposit into pools, earn fees from leveraged trading, borrowing and swaps, and are exposed to traders' profits and losses.

In each case, there is no account sign-up in the usual sense. Users connect a wallet, deposit margin and sign orders.

What are perp DEX points and how does farming them work?

Points are a loyalty score that many perp DEXs give users for trading volume, providing liquidity or referring others. Points often have no stated value at first, and projects rarely promise what they will become.

Two cases show how points have been used. Hyperliquid tracked reward points over about six months, then on November 29, 2024 distributed 31% of its HYPE supply to eligible users, with each point converting to five tokens, according to The Block. Lighter, an Ethereum-based perp DEX, launched its LIT token on December 30, 2025 and set aside 25% of fully diluted supply as an airdrop for participants in its first two points seasons of 2025.

Farming perp DEX points means trading mainly to collect points. It carries the same leverage and liquidation risk as any trading, plus fees on every trade, and projects may filter out activity they see as artificial. A points program can also end without any token. More on how token giveaways work is in what a crypto airdrop is.

Are perp DEXs regulated?

Perpetual futures have mostly traded offshore or on DeFi venues. In the United States, the CFTC approved a bitcoin perpetual contract on the regulated exchange Kalshi on May 29, 2026, and its staff gave relief letting Coinbase Financial Markets offer US customers certain perpetuals through an affiliate, according to law firm Dechert. Dechert noted those steps did not set out how decentralized perp exchanges would be treated. Rules for these platforms differ by country and were still changing as of October 2026.