3 Ways To Earn Profit On Crypto Derivatives Exchanges

1. What Are Crypto Derivatives Exchanges?

Derivatives DEXes allow trading futures-based contracts referencing crypto prices without owning the underlying assets. 

2. Perpetual Protocol

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• Profit method: Farming

• Network: Optimism

• Assets: AVAX, BTC, CRV, ETH, LUNA, SAND, SOL...

• Earnings mechanism:

 ° Pool Base APR from trading fees.

 ° Pool Rewards APR via liquidity mining.

• Tips: Choose pools with low TVL but high trading volume; concentrate liquidity (~±30%) to optimize capital; yields often exceed those from yield aggregators. 

3. Deri Protocol

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• Profit method: Staking

• Network: Binance Smart Chain

• Assets: various tokens

• APY: around 34%, lower than farming but higher than lending; pick pools with highest APR, e.g., staking CAKE on PancakeSwap yields ~60% APR.

4. MCDEX

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• Profit method: Staking

• Networks: BSC and Arbitrum

• Popular assets: ETH and BUSD

• Earnings sources:

   ° 30-Day LP APY: fees collected from liquidated traders.

   ° Mining APY: token distribution based on contributed tokens.

  APY varies with market activity; e.g., pools showing ~46.61% APY after 30 days during high liquidation periods.

5. General Tips

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• Opt for high volume/TVL pools to maximize fee income.

• Use ±30% concentrated liquidity to improve capital efficiency, similar to Uniswap V3.

• Compare farming vs. staking vs. yield aggregator returns before choosing.