This current bear market has revealed the loophole in the operation of centralized exchanges. While some are good players, the bad players have caused a shift to the next narrative in the crypto market.
Since narratives are the main drive of an ecosystem in the crypto market, everyone is looking for the next big thing to hit the market.
The decentralized perpetual trading narrative has remained one of the competitive industries in the crypto space at the moment. The shift to this new narrative is a result of the consequences of centralized exchange closure during this bear season among other reasons.
To be on the safer side and get control of one's assets, users are deciding to make use of dex perp as an alternative to a centralized platform.
THE BATTLE
As a competitive industry, different dex perp has aroused on different chains to onboard users, causing chaos about who will survive amidst these competitive products.
To get the whole concept, Aave is leading the borrowing and lending landscape while Uniswap is still the main dex for swaps. Who will be the leader of the decentralized perpetual ecosystem??
On the opposite side, users are still addicted to centralized platforms and dex perps are only fighting the same users base that are defi oriented. How can they onboard CEX users??
The PMM strategy which means Product, Marketing, and Management.
Product
Building a robust product that satisfies users' cravings goes a long way to taking the lead. A rigorous competitive analysis and user analysis are needed to build the right product. Forking an existing code will make the product operate almost the same way as others without going beyond the norms. To take the lead, you must build for the users.
Marketing
Influencer shilling is part of the process of onboarding but advanced marketing plans should be attached to ensure the user's long-term retention. The balance between short-term and long-term strategy will show who will still be here in the long run.
MANAGEMENT
Effective community management of the users onboarded plays a vital role in staying at the top. Since web3 incentivizes users to test a new product, most users bridge to the next paying project. Effective management is a way to keep a proportion of users amidst current and upcoming competitors.
Decentralized finance as a whole is still in the making and those who have a good vision can build a solid project for the long term. For decentralized perpetual protocols, there can be a leading platform across different exchanges, and a project that falls within this ecosystem can target a specific blockchain rather than aiming for all.
Finally, there is much effort in building a product, if you are building a product and you need help concerning the PMM strategy and outside of this, I'll be glad to get on a call with you and if possible, get on board as part of your team.
Keep building the next big thing. 💪
