Extended Launches Hybrid Derivatives Exchange with $300 Million Trading Volume
Extended, previously known as X10, is enhancing its hybrid derivatives exchange to ensure open access for all users. An invite-only launch generated $300 million in trading volume, according to the team.
Key Features
Unified portfolio margining allows users to trade both spot and perpetuals using a single collateral pool, increasing capital efficiency. This feature, common in traditional finance, is still rare in DeFi. Extended also offers ultra-low latency (10-20ms), similar to centralized exchanges, achieved through centralized order processing with trustless on-chain settlement.
This system utilizes StarkWare’s StarkEx technology, which was also employed by dYdX v3 before its migration to its own chain.
Architecture and Future Plans
The platform's architecture includes permissionless withdrawals, with plans to transition to Starknet, as stated by CEO Ruslan Fakhrutdinov. He noted that StarkWare is technologically advanced compared to competitors.
Fakhrutdinov described blockchain as merely a settlement layer, highlighting the platform’s chain-agnostic approach: “As long as it has the infrastructure for trustless settlement, we can always settle and migrate if necessary.”
User Collateral Management
A unique aspect of Extended is its fully segregated user collateral, which prevents commingling even within planned liquidity vaults launching in early 2025. Funds are stored in individual sub-accounts directly linked to user contributions, ensuring transparency and reducing legal risks compared to platforms like Hyperliquid that use pooled funds.
For efficiency during centralized processing, vaults are treated as a single user but transactions are split during settlement. The low latency is attributed to “asynchronous, parallelized settlement,” providing speeds comparable to centralized exchanges.
Funding and Token Status
Extended does not have an active token but raised $6.5 million earlier this year and intends to launch a points program soon.
Correction Dec. 11, 2024, at 3:06 pm ET: Extended does not currently offer unified margining in the open beta phase.