2025-12-25 14:24:31

The rise of perpetual DEXs is redefining the liquidity landscape of the commodities market. As derivatives trading increasingly shifts to on-chain platforms, the price discovery mechanisms for traditional assets like metals are also changing. This is not just a matter of trading migration—leverage positions, funding rates, and liquidation cascade effects are interacting in unprecedented ways. Interestingly, whether the trading behaviors on these decentralized derivatives platforms will have feedback effects on the spot market is worth close monitoring. If you've followed the volatility of metal futures, you'll notice that the correlation between on-chain perp DEX position changes and price fluctuations has been strengthening month by month.

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DeFiGrayling

· 7h ago

On-chain derivatives are causing chaos in traditional metal futures, and this is just the beginning. --- Can the liquidation waterfall of perp DEXs really impact spot markets? I think it will eventually cause problems. --- Funding rates are increasingly resembling tools for whales; retail investors are about to get cut again. --- The metal price discovery mechanism has been rewritten. What does traditional finance think about this? --- Position correlation is strengthening month by month... indicating that on-chain has truly become the main pricing authority. --- Wait, does this mean perp DEXs can already influence the prices of commodities? That's a bit scary. --- I'm most worried about the cascading effects of liquidations; if it crashes, the entire market will shake. --- On-chain liquidity is taking away the traditional exchanges' business. Interesting. --- The feedback effect definitely exists. The question is whether it can be exploited by some big players.

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DefiPlaybook

· 7h ago

On-chain perp has turned traditional metal futures upside down. Now the question is, when will the funding rate start to bite back...

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ImaginaryWhale

· 7h ago

On-chain perp has turned the traditional metals market upside down, and the funding rate mechanism is indeed quite aggressive. But to be honest, whether the liquidation cascade will become the next black swan remains to be seen.

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