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D8X Exchange
D8X Exchange
D8X Exchange is a decentralized perpetual futures exchange protocol that provides an institutional-grade trading experience and a white-label solution for other platforms to launch their own derivatives markets. It employs a hybrid architecture, combining an off-chain order book for performance with on-chain settlement for self-custody and transparency. Initially launched on Polygon PoS, the protocol has expanded its support to other EVM-compatible networks like Arbitrum and Polygon zkEVM. [1] [2]
Overview
D8X Exchange is designed to address common challenges in decentralized derivatives trading, such as fragmented liquidity, high latency, and limited market offerings. The project's stated goal is to provide a platform with deep liquidity, low latency, and competitive fees, comparable to centralized exchanges (CEXs), while retaining the core DeFi principles of self-custody and on-chain transparency. [1] The protocol is built to be permissionless, allowing anyone to create a perpetuals market for any asset that has a reliable price feed. [2]
A core part of the D8X offering is its white-label solution. This allows other projects, including Layer 1 (L1) and Layer 2 (L2) blockchains, decentralized exchanges (DEXs), crypto wallets, and influencers, to launch their own branded perpetual futures platforms without extensive development or upfront licensing fees. [2] [3] The project's public communications emphasize the strategic importance of native perpetuals for blockchain ecosystems, asserting that offering such products is critical for retaining users and Total Value Locked (TVL). [3]
The platform is incorporated in Switzerland and was founded by a team with experience from financial institutions like Goldman Sachs and J.P. Morgan, as well as various fintech startups. [1] [2] It has secured backing from several venture capital firms and strategic partners, including Polygon Ventures, G8 Ventures, and Big Brain Holdings. [2]
History
The public presence of D8X Exchange began in November 2022 with the creation of its official X (formerly Twitter) account. [3] The project's mainnet officially went live on the Polygon PoS network in the fourth quarter of 2023. [1]
In 2024, the entity behind the protocol was formally established in Switzerland. [2] Throughout that year, the protocol achieved several milestones and initiated its multi-chain expansion. In February 2024, D8X completed a security audit of its smart contracts with ABDK Consulting. [1] The protocol also underwent a security audit by PeckShield during 2024. [2]
By May 2024, the exchange announced it had surpassed $1 billion in cumulative trading volume. [1] During this period, the team began executing its plans for multi-chain deployment, with testnet versions of the protocol going live on Polygon zkEVM Testnet and Arbitrum Sepolia Testnet. This expansion was facilitated by partners and front-end providers who utilized the D8X white-label solution. [2]
Technology and Architecture
D8X employs a distinct architecture that combines off-chain and on-chain components to optimize for speed, user experience, and decentralization. The technology is centered around its hybrid execution model, a shared liquidity mechanism, and a permissionless market creation system. [1]
Hybrid Execution Model
The core of D8X's performance is its hybrid architecture, which separates order matching from trade settlement.
- Off-Chain Order Book and Matching Engine: User orders are sent to a centralized, off-chain order book. This system matches buy and sell orders with high speed and low latency, designed to replicate the performance and user experience of a CEX. [1]
- On-Chain Settlement: While matching is off-chain, the settlement of all matched trades occurs on-chain on a supported EVM network. This step ensures that users maintain self-custody of their funds at all times and that a verifiable, transparent record of all transactions is maintained on the blockchain. [1]
The project's social media communications state that its architecture has "no reliance on centralised components," allowing partners to launch a fully decentralized product. [3] This refers to the self-custodial nature and on-chain settlement, which form the decentralized foundation of the protocol, while the off-chain matching engine serves as a performance layer. [1]
Liquidity Model
D8X utilizes a unique liquidity model that departs from standard Automated Market Maker (AMM) or Virtual AMM (vAMM) systems found in many DEXs. The model is described through several interconnected concepts. [1] [2]
- Shared Liquidity Pool: The protocol uses a single, shared liquidity pool that acts as the universal counterparty for all trades across all markets on the platform. This design concentrates liquidity, aiming to provide deeper markets and reduce slippage for traders. For liquidity providers (LPs), it simplifies exposure, as they can deposit a single asset and earn yield from trading fees generated across the entire protocol. [2]
- Delegated Partner-Pool based Perpetuals (DPP): Institutional LPs provide liquidity into private, segregated pools. This liquidity is then delegated to the D8X smart contracts to back trades across the exchange. This structure is intended to facilitate deeper, more concentrated liquidity and tighter spreads. [1]
- Risk-Based AMM: The system incorporates a proprietary risk-based AMM. This mechanism is designed to always provide executable quotes, ensuring the platform can function even during periods of thin liquidity. It contributes to stable market depth and predictable execution for traders, reducing the reliance on traditional market makers to sustain volume. [3]
Permissionless Market Creation
A key feature of the protocol is the ability for anyone to permissionlessly create a new perpetuals market. This is possible for any asset that has a reliable price feed from a supported oracle network, such as the Pyth Network. This capability lowers the barrier to entry for listing new or long-tail assets, a common limitation on centralized and many decentralized derivatives exchanges. [2]
Blockchain and Oracles
D8X was initially launched on Polygon PoS and is designed to be chain-agnostic and compatible with other EVM-based networks. [1] Subsequent deployments and integrations have occurred on Arbitrum and Polygon zkEVM, with a planned front-end for the Berachain ecosystem. [2]
For real-time asset pricing, liquidations, and funding rate calculations, the protocol relies on high-fidelity oracle price feeds from the Pyth Network. [1] [2]
Risk Management
To safeguard the shared liquidity pool from insolvency, D8X integrates a multi-faceted risk management engine. Key components include a funding rate mechanism to balance long and short positions and keep the contract price aligned with the spot price, as well as a dynamic collateral system that adjusts margin requirements based on market volatility and other risk parameters. [2]
Products and Services
D8X offers a suite of products catering to individual traders, liquidity providers, and B2B partners.
Perpetual Futures Trading
The core offering for retail and institutional traders is perpetual futures trading with up to 100x leverage. [2] The permissionless nature of the protocol allows for a diverse range of markets, including:
- Cryptocurrencies: Major assets such as BTC-USD, ETH-USD, MATIC-USD, and SOL-USD. [1]
- Forex (FX)
- Commodities
- Indices [2]
White-Label Solution
D8X provides a plug-and-play, white-label solution that enables third parties to launch their own branded perpetuals DEX. This service is targeted at DEXs, crypto wallets, launchpads, and online communities or influencers. Partners can deploy a front-end interface that connects to the D8X protocol's backend liquidity and infrastructure. This model does not require upfront licensing fees; instead, partners earn a share of the trading fees generated by users on their specific front-end. [2] [3]
Leveraged Prediction Markets
The platform's architecture also supports the creation of leveraged prediction markets. This allows users to speculate on the outcomes of real-world events in areas such as politics, sports, and entertainment. [2]
Market Performance and Data
As of November 2025, data on D8X's trading activity shows conflicting metrics from different sources.
One analysis reported a 24-hour trading volume of approximately 1.89 million. [1] However, data from CoinGecko for the same period reported $0.00 for both 24-hour trading volume and open interest across 22 listed pairs. The CoinGecko report noted that these zero-dollar figures could be indicative of the protocol's early stage of integration with the data aggregator or low initial liquidity on the specific deployment being tracked. [2]
CoinGecko has assigned D8X a "Fair" Trust Score, which is a composite metric based on an exchange's liquidity, scale of operations, and cybersecurity measures. [1]
Ecosystem and Partnerships
D8X has established a network of investors, infrastructure partners, and front-end integrators.
Investors and Backers
The project has received funding and strategic support from a variety of entities in the venture capital and digital asset space, including:
- Polygon Ventures
- G8 Ventures
- Big Brain Holdings
- Axelar
- Kairon Labs
- Existence
- Swissborg Ventures
- Skynet Trading
- Based VC [2]
Infrastructure and Security Partners
- Pyth Network: Serves as the primary oracle provider, supplying real-time price data for the assets traded on the exchange. [1]
- ABDK Consulting: A security firm that conducted a smart contract audit for the protocol in early 2024. [1]
- PeckShield: Another security firm that performed an audit of the D8X smart contracts in 2024. [2]
- Bebop: A DEX aggregator that has partnered with D8X. [2]
Front-End and White-Label Partners
- OctoFi: A partner that has utilized the D8X white-label solution to launch its own perpetuals DEX on the Polygon zkEVM and Arbitrum networks. [2]
- Mad Honey: A project building a front-end for D8X specifically for the Berachain ecosystem. [2]
Security and Challenges
The security of the D8X protocol is a primary focus, particularly given the complexity of its hybrid architecture. The combination of an off-chain matching engine with on-chain settlement introduces unique potential risks. The reliance on a centralized component for order matching could represent a point of failure or censorship if not sufficiently decentralized over time. [1]
To mitigate these risks, D8X has engaged multiple third-party security firms to audit its smart contract code. Publicly announced audits include one by ABDK Consulting, completed in February 2024, and another by PeckShield, also conducted in 2024. These audits helped identify and remediate potential vulnerabilities. As of late 2025, no major public security breaches have been reported since the protocol's launch. [1] [2]
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