✨What Problem Does Star Perps Solve?

The crypto derivatives market currently handles around $3 trillion in trading volume monthly, representing nearly 80% of all crypto trade activity. However, a staggering 99% of this volume still takes place on centralized exchanges (CEXs), which operate in stark contrast to the decentralized finance (DeFi) ethos.

CEXs present multiple inherent risks, including:

• Order flow manipulation and frontrunning

• Lack of user fund security

• Centralized custody risks

• Solvency concerns

High-profile collapses like FTX and ongoing scrutiny of exchanges like Binance highlight that even "trusted" CEXs cannot guarantee safety or transparency. Additionally, external pressures such as regulatory crackdowns and stringent KYC requirements are driving users and institutions away from CEXs and towards decentralized alternatives.

The On-Chain Solution

Blockchain technology offers a solution to these problems by enabling permissionless, trustless, and self-custodial financial transactions. However, current on-chain derivatives exchanges have yet to fully realize this potential due to significant technological and user experience shortcomings.

At present, only 1-2% of crypto futures trading occurs on-chain, similar to the early days of decentralized spot trading before the advent of AMMs like Uniswap and Sushiswap. The on-chain derivatives market is ripe for a similar surge in adoption, but existing platforms struggle to match the liquidity, speed, and user experience provided by centralized exchanges.

Enter Star Perps

Star Perps aims to solve these challenges and drive the migration of crypto derivatives trading on-chain with several key innovations:

• CEX-like Liquidity and Efficiency: Star Perps leverages a unique trading architecture that delivers centralized-exchange-level trade execution on-chain, all while maintaining competitive fees.

• User Experience at the Forefront: DeFi platforms often fall short in terms of usability, especially for newcomers unfamiliar with wallets, gas fees, and contract interactions. Star Perps addresses these barriers with features like account abstraction, gas management, and one-click trading, making decentralized trading accessible to retail users.

By combining the deep liquidity and efficiency of centralized platforms with the transparency and security of DeFi, Star Perps bridges the gap and facilitates the next wave of on-chain derivatives adoption.