Paradex

Paradex operates a decentralized exchange (DEX) focused on crypto derivatives: perpetual futures, options, and spot trading across more than 250 markets, including cryptocurrencies, equities, forex, and commodities, running 24/7 with no traditional trading fees.

Technically, Paradex runs on DimeVM, a proprietary layer-2 blockchain that, according to the provider, handles up to 1,000 transactions per second with two-second finality, using native Cairo execution for faster processing and account abstraction for gasless transactions. Positions, entry and exit points, liquidation levels, and profit/loss data are hidden from other market participants through ZK-encrypted accounts. Instead of automatic forced liquidation during extreme market moves, Paradex uses socialized loss mechanisms, and a single account allows unified margin trading across asset classes, in isolated, cross, or portfolio margin modes.

Paradex also offers automated, multi-strategy vaults for passive income. The platform was incubated by Paradigm, with backing from well-known crypto investors including Jump Crypto, Dragonfly Capital, and market maker Optiver — a sign of the project's institutional standing within the professional crypto trading space.

By combining privacy features with institutional backing, Paradex positions itself deliberately between anonymous decentralized exchanges with no oversight at all and heavily regulated but fully transparent centralized trading venues.

Backing from established market makers like Optiver also suggests that professional trading firms supply part of the platform's liquidity, rather than Paradex relying solely on retail traders as its liquidity source.