Efficiency Study of Order Book Models in dYdX v4 and Hyperliquid On-Chain Derivatives DEXs
dYdX v4 and Hyperliquid are leading decentralized exchanges (DEXs) for on-chain derivatives, both utilizing order book models. dYdX v4, built on Cosmos SDK, employs an off-chain order book with on-chain settlement, achieving low-latency matching and zero gas fees for order submissions. Its proof-of-stake consensus ensures scalability, handling 182+ markets with $300M daily volume. Hyperliquid, on its custom L1 chain, features a fully on-chain order book, supporting 130+ assets and $2B daily volume. Its HyperBFT consensus enables up to 200,000 TPS, offering superior execution speed and liquidity. While dYdX v4 prioritizes decentralization and community governance, Hyperliquid excels in performance and market dominance (64.8% share). Hyperliquid’s tighter spreads and lower fees (0.01% maker, 0.035% taker) enhance efficiency for high-frequency traders,