Non-custodial perpetual swaps

The non-custodial exchange sector continues to go from strength to strength. According to The Block’s Open Finance Index, non-custodial exchange volume is up 762% year-to-date, having grown 198% between Q4 2019 and Q1 2020. Market structure continues to mature at an extraordinary pace, with users able to select between traditional order book models, constant function automated market makers (AMM), batched auctions, among a variety of other designs. 

While volumes continue to pale in comparison to those supported by centralized marketplaces, the increasing lure of permissionless and non-custodial features along with the entrance of professional liquidity providers suggests that non-custodial exchanges may ultimately serve a non-trivial role in the broader cryptocurrency market structure.