The last few months have been a rough rollercoaster for Paradex. They went from doing over $3B in daily volumes to now settling at ~$300 million. They have caught an incredible amount of FUD, none of which really fazed me.
Let’s touch on the first piece of FUD that everyone will talk about which is the decrease in volumes.
Here are a few charts that will help you think through this.
The end result is a 30-90% drawdown from their peak across metrics which is roughly in line with the two major onchain perp DEXs. So while the headline might say “Paradex volumes are down -87%”, net net, not as bad across various metrics.
The next common pushback will be: “Well no one will want to hold the second or third best perp DEX token as just owning the market leader tends to be the best bet.”
While this is generally speaking true I don’t hate the idea of owning a token where the entire @tradeparadigm team is building the product, trading at an attractive valuation (hopefully), while dated options and paradigm’s RFQ integration is just
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