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Beyond the Price with Paradex: AMA recap - important alpha for DeFi hunters!
https://app.paradex.trade/r/harecrypta
📌Why are crypto options still underused compared to perpetual?
(By https://x.com/SKDeFi/status/1935314138516840809)
Perpetuals are a "super product": they combine high leverage, high volatility, and asymmetric payoff similar to options. For many users, perps feel like options, offering explosive upside and limited downside via liquidation-based risk.
Meanwhile, real options in crypto remain expensive due to high implied volatility - they’re essentially insurance on an already volatile asset. Until $BTC volatility cools, options will lag behind in retail and DeFi usage.
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📌What's Paradex building with the Superchain?
The goal is a chain where traders can act without compromise: trade, borrow, lend, and compose transactions all in one system. Most DeFi platforms offer fragmented functionality - you can do 1 out of 5 things well, but rarely all five.
Paradex realized to support seamless, institutional-grade trading, they needed to control the entire execution stack, not just build an app. Hence, the Superchain: a ZK-powered, purpose-built infrastructure designed to unlock performance and composability at scale.
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📌Is the Superchain open or closed?
While initially focused on Paradex products, the long-term vision is to build an open financial infrastructure. The idea is to build a liquidity hub that other businesses and protocols can plug into. Superchain will offer core financial primitives - liquidity, privacy, and performance - that others can build upon.
Paradex lays the foundation; others bring the economy.
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📌How does Paradex approach privacy?
Privacy isn't optional - it’s foundational. No major fund or trading firm wants to publicly disclose positions, timing, or size, especially when it invites frontrunning.
Paradex considers privacy a foundational primitive on the SuperChain. This means full position privacy via encrypted accounts. This will happen in ~6 months. Until then, we will mask RPC for L2 privacy and encrypt DA for L1 privacy, which gives you the same end goal. All this is powered by the insanely performant and scalable STRK-powered stack we run.
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📌Is privacy something users demand?
Absolutely.
@tradeparadigms
entire RFQ business model exists because large-sized traders don’t want to expose their orders to the public order book. With over 3,000 institutional clients doing billions in volume, this demand for execution privacy is not hypothetical - it’s core to their success. Paradigm would not exist without it.
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📌Will privacy degrade the UX?
No compromises here. The privacy implementation happens at the chain level, meaning users won’t experience added friction or popups. From their perspective, it works exactly like a centralized exchange - seamless execution, but with full cryptographic privacy under the hood. This elegance is a core differentiator.
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📌What is $XUSD, and why does Paradex want a stablecoin?
$XUSD is more than a dollar peg; it’s access to the crypto-native "risk-free rate." By auto-converting idle capital into delta-neutral strategies (long spot, short perp), Paradex lets users earn passive yield.
Thanks to portfolio margining, users can earn more yield with less capital than competitors. This transforms stablecoins from static assets into productive, yield-bearing instruments without taking directional market risk.
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📌Is this a $USDC competitor?
Not directly. $XUSD is opt-in and tailored to Paradex users who want yield on idle capital. However, it can function like $USDC outside the platform since it's fully on-chain, verifiable, and can be transferred to other L1s and chains.
The key differentiator is yield-generation through composable DeFi mechanics - not just custody-backed stability.
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📌How does Paradex compare with Hyperliquid?
Paradex respects Hyperliquid deeply - they proved that on-chain exchanges can be performant and commercially viable.
But Paradex’s approach is different: while Hyperliquid is building a performant chain around its exchange, Paradex is building an all-in-one superapp on a performant chain. It’s a different sequencing: build product depth and UX first, then scale chain infra later, while keeping composability and privacy intact.
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📌Will Paradex issue a token like $HYPE?
Yes, $DIME is coming. But unlike early governance tokens, $DIME is designed for value accrual via real protocol revenue, not just speculative trading rights. The market has moved on - users demand cash flow, not vague governance promises. Tokenomics will reflect that shift from day one.
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📌Buyback or yield? What’s better for the token value?
Fiddy leans toward buybacks for now due to regulatory clarity and strong supply-side effects.
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📌How important is community ownership?
Crucial. Paradex sees its community not just as users but as stakeholders in brand, governance, and growth. The team aims to give them real economic power and influence - much like Hyperliquid has done. Without strong community alignment, Web3 products don’t scale.
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📌What are the Money Badgers?
Money Badgers are the new cultural layer: Paradex’s NFT and meme coin brand. They represent the attention economy side of crypto - memes, identity, and community. It’s a way to reward early believers, build culture, and later monetize mindshare through gamification, content, and token design.
Expect the launch in ~ a month.
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📌Are NFTs just cosmetic, or will they have utility?
The NFTs will serve as identity tokens, early access passes, and more. Owners may get premium features, beta access, reduced fees, and ongoing airdrops. The team wants to tokenize loyalty - those grinding in the early trenches will be remembered and rewarded long-term. It’s the beginning of a cultural flywheel.
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📌What's the community rollout strategy?
Paradex thinks about bootstrapping in concentric circles: identify core believers, reward them first, then expand. Early users get NFTs and participation in the meme ecosystem.
Over time, they’ll receive more value like drops, stake incentives, access to other projects - cementing long-term loyalty. It’s a community as a compounding asset.
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📌Advice for getting started in Web3?
Don’t overthink it - buy a token that interests you. The emotional investment will force you to learn faster than any blog. When you have real money at stake, curiosity turns into action, and education becomes urgent. It’s the fastest way to care, understand, and grow. 2 replies
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