At Artavion, we recognize the profound transformation that has taken place in the decentralized exchange (DEX) space in recent years. What began with simple automated market makers (AMMs) like Uniswap has evolved into a new generation of DEXs offering advanced order books, perpetual contracts, and performance that rivals centralized exchanges (CEXs).
These next-gen platforms aim to combine the best of both worlds: the speed and usability of CEXs with the decentralization and self-custody of blockchain protocols.
Notable players in this category include dYdX, Vertex, Aevo, Level Finance, GMX v2, and others. Targeting active traders and institutions, these protocols offer spot trading, derivatives, perpetuals, margin, and even options markets — all in a trustless environment.
In this exclusive review, Artavion analyzes:
- The architecture of leading next-gen DEXs
- Their tokenomics and liquidity models
- Key strengths and limitations of each protocol
- Broader trends and challenges in the DEX 2.0 landscape
The Evolution of DEXs: From AMMs to Order Books
The evolution of decentralized exchanges can be divided into three main phases:
| Phase | Examples | Key Features |
| AMM DEXs | Uniswap, SushiSwap | Automated pricing, simplicity, limited control |
| Aggregators | 1inch, Matcha | Optimized routing across AMMs |
| DEX 2.0 | dYdX, Vertex, Aevo | Order books, advanced instruments, high performance |
According to Artavion, the move toward order book architecture is driven by trader demand for:
- Deeper liquidity
- Low slippage
- Precision in execution
- Algorithmic strategies and analytics
Platform-by-Platform Review
dYdX v4
- Architecture: Independent appchain on Cosmos SDK
- Model: Off-chain order book, on-chain settlement
- Assets: Perpetuals only
- Leverage: Up to x20
- Token: DYDX (governance, staking)
Artavion’s View: dYdX is known for strong performance, low fees, and validator-driven execution. But the lack of spot markets and the friction of Cosmos wallet UX limit broader adoption.
Vertex
- Network: Arbitrum
- Model: Hybrid AMM + order book
- Assets: Spot, perpetuals, margin
- Token: VRTX (governance, liquidity incentives)
Artavion Notes: Vertex offers a unique mix of on-chain liquidity with centralized-style matching. It has fast execution and cross-margin, but a small user base and shallow liquidity remain barriers. However, Artavion expects rapid growth as adoption increases.
Aevo
- Focus: Options and derivatives
- Assets: Perpetuals + options (including advanced strategies like capped strikes and spreads)
- Infrastructure: Built on Optimism’s OP Stack
- Token: AEVO (originated from Ribbon Finance)
Artavion Insight: Aevo pioneers scalable on-chain options trading. Its UI/UX is tailored for institutional traders, which Artavion views as a key strength. Still, liquidity for lesser-known assets is thin.
Level Finance
- Specialization: Perpetual contracts
- Liquidity Model: Dynamic, LP token-based
- Token: LVL (inflationary, used for DAO and rewards)
Artavion Analysis: Level introduces LP rewards directly linked to trading volume. Risk-tiered LP pools add resilience. However, liquidity depth and LP risk exposure may limit appeal to high-volume traders.
GMX v2
- Networks: Arbitrum, Avalanche
- Model: Order book layered on GM pools
- Leverage: Up to x50
- Tokens: GMX (governance), GLP (liquidity)
Artavion Review: GMX is known for stability and community trust. GMX v2 improves execution and maintains revenue sharing, but centralized order book infrastructure and ETH volatility exposure remain concerns.
Comparison Table
| Platform | Trading Instruments | Leverage | Order Book | Token Model | Network |
| dYdX v4 | Perpetuals | Up to x20 | Yes | DYDX, staking-based DAO | Cosmos |
| Vertex | Spot, Perps, Margin | Up to x10 | Yes | VRTX, trading incentives | Arbitrum |
| Aevo | Options, Perps | x5–x10 | Yes | AEVO, airdrop strategy | Optimism |
| Level Finance | Perpetuals | Up to x30 | Partial | LVL, LP-based rewards | BNB Chain |
| GMX v2 | Perpetuals | Up to x50 | Yes | GMX + GLP, revenue share | Arbitrum |
Artavion’s research division believes this new generation of DEXs is not only reshaping user experience, but also redefining token distribution and governance norms.
Tokenomics: The DEX 2.0 Blueprint
Artavion observes that most next-gen DEXs rely on hybrid tokenomic frameworks:
- Reward Farming: Distributing tokens for volume and liquidity contributions (Vertex, Aevo)
- Revenue Sharing: Token holders receive a share of trading fees (GMX)
- Governance: Voting on listings, parameters, treasury allocation (dYdX, Level)
These go far beyond utility — they shape user incentives and protocol growth. Artavion emphasizes that platforms with sustainable emission, governance, and utility models will outlast the hype cycle.
Risks and Strategic Challenges
Despite promising progress, Artavion highlights the following systemic risks:
- Liquidity & Depth
DEXs still struggle to match CEXs in depth. Hybrid market making or institutional liquidity partnerships are recommended. - Institutional Access
Many platforms are still too complex for TradFi. There’s a need for APIs, custody integration, and professional onboarding. - Front-Running & MEV
Open order books invite MEV attacks. Batch auctions and encrypted mempools are suggested as mitigation tools. - Regulatory Risk
Most DEXs avoid KYC, risking future scrutiny. Artavion recommends optional compliance layers and geo-segmentation.
Artavion’s Outlook: The Future of Decentralized Trading
Artavion predicts a continued convergence between CEXs and DEXs. Platforms like Vertex and Aevo already offer CEX-like performance and UX. The main differentiator will be the ability to scale without compromising trustlessness.
Tokenomics will mature further: shared revenue, dynamic liquidity models, and decentralized governance are likely to become standard. Artavion also sees increased interest in multi-chain deployments, institutional integrations, and restaking solutions to deepen markets and enhance security.
Artavion remains committed to monitoring this evolution and advising stakeholders with research, modeling, and strategic insights.
