A Binance-like experience with decentralized settlement
Extended is ramping up its hybrid derivatives exchange with a key offering
Extended modified by Blockworks
Extended, formerly X10, is ramping up its hybrid derivatives exchange to provide open access to all users today. An invite-only launch saw $300 million in trading volume, according to the team.
Key to its offering will be unified portfolio margining, which enables users to trade both spot and perpetuals with a single collateral pool, thus enhancing capital efficiency for traders. While commonplace in traditional finance, unified margining is still rare in DeFi. Extended further boasts ultra-low latency (10-20ms), comparable to centralized exchanges, achieved through centralized order processing with trustless onchain settlement.
This system is supported by StarkWare’s StarkEx technology, the same platform dYdX v3 employed prior to launching its own chain.
Read more: dYdX tokenomics scrutinized as staking goes live
The trust-minimized architecture includes permissionless withdrawals, and Extended has plans to migrate to Starknet, according to CEO Ruslan Fakhrutdinov.
“Based on our reviews and assessments, [StarkWare is] at least years ahead of anyone else, technologically,” Fakhrutdinov, the former head of crypto operations at Revolut, told Blockworks.
“For us, blockchain is just a settlement layer,” Fakhrutdinov said, emphasizing the platform’s chain-agnostic approach. “As long as it has the infrastructure for trustless settlement, we can always settle and migrate if necessary,” he said.
One novel feature of Extended is that user collateral is fully segregated and never comingled, even within its planned liquidity vaults launching in early 2025. Funds are held in individual sub-accounts tied directly to their contributions, with onchain settlements reflecting this separation. Unlike other platforms that offer vaults, such as Hyperliquid, which pool funds under a central manager, Extended’s approach mitigates legal risks and maintains transparency.
The vaults are nevertheless treated as a single user for efficiency during centralized processing, and splits transactions during settlement.
Fakhrutdinov credits “asynchronous, parallelized settlement,” as the key to achieving such low latency, “on par with any centralized exchange.
Extended has no token, but raised $6.5 million earlier this year and plans to launch a points program soon.
Correction Dec. 11, 2024, at 3:06 pm ET: Extended doesn’t yet offer unified margining in the current open beta.
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