Perp Dex is the "Emperor's New Clothes", but you and I are both tailors weaving the cloth.

The article argues that the current frenzy around perpetual decentralized exchanges (perp DEXs) and their point systems is akin to the fable "The Emperor's New Clothes," where participants are complicit in an illusion of value. The author makes several key points:

Normalization of "Cheating": Inflating trading volume or scores ("cheating") is considered normal on perp DEXs, driven by incentives, and is not inherently negative but rather an open-arms approach typical of DEXs.
Primary Motivation (Alpha): The main profit driver for manipulating scores pre-Token Generation Event (TGE) is the expectation that the token will launch at a high price. This price is influenced by factors like exchange listings, liquidity, market manipulation, and hype, with fundamentals playing a diminishing role.
The "Denominator" Problem: As more participants engage in score farming, the fixed token reward pool is divided among more people, reducing individual rewards. This creates a "catfish effect," encouraging ever-increasing volume, which benefits the project.
Professional Dominance: Large-scale farming is dominated by professional players using APIs, making it difficult for ordinary users to achieve significant gains (e.g., "a7/a8" profits). The author advises participating modestly for market insight rather than going all-in.
Controlled Token Distribution: A key factor for a token's high launch price is tight control over the initial supply, with preferential treatment for large players.

The core message is that while participating can offer insights, the current environment is a highly speculative "KTV room" detached from the average user's reality. The advice is to engage cautiously within one's own understanding and risk tolerance.

Say something nonsense about perp dex score/volume

1. First of all, it is normal to cheat on the perp dex. HyperliquidX also has organic cheating (as does cex). Where there is incentive, there will be behavior. Don't think that this is a bad thing - the attitude of being open to all is the attitude that dex should have.

Without wool, how could there be a woolen sweater? Without a woolen sweater, how could Kong Yiji have a long gown? Without a long gown, how could the emperor have new clothes?

2. Where does the main alpha of score manipulation come from (pre-tge)? Essentially, it is the expectation that the token will open high when it is tge.

It is known that the project will distribute x% of tokens to point holders. The number of tokens is fixed, and the only thing that can be determined is the price of the token, which is determined by the exchange listing, liquidity, control of chips, investors, market manipulation, market expectations, etc. - Currently, due to the exaggerated growth of $aster, imagination has been opened up, so people from all walks of life have flocked in (the perp vol of edgex and lighter is almost reaching Mars)

But everyone needs to be able to distinguish - can the price of the coin rise in this version? How much can it rise? The correlation with fundamentals/narratives is getting smaller and smaller. It is chips/father’s orders/mechanisms/fuel etc.

Think about this carefully: Did the price increase lead to the creation of a narrative? Or did the creation of a narrative lead to the price surge?

3. The second consideration for the profit of cheating points is the denominator - where are your own points? Knowing that the incentive of the currency given by the project is fixed, how much an individual can get depends on his or her share.

As more and more people come to brush, the denominator will only get bigger and bigger, so each point will be distributed to less and less (except for the minimum living allowance). This is actually what the project team is very happy to see. It is equivalent to the catfish effect, which continuously promotes everyone to move forward. The higher the transaction volume, the higher the income. Edgex's 24-hour income is close to 2 million.

In addition, those who can achieve this kind of large-scale "interaction" are professional APIs, which ordinary people can't do at all (the amount of perp is different from spot). Just participate in it with a low-income guarantee, don't really think that you can get a single a7/a8.

4. As mentioned in 2, one of the core elements of this version’s “high opening” is controlling the number of tokens. It is difficult to distribute a large number of tokens at the beginning. Even if they are distributed to you, there will be one-on-one guidance for “big players”.

5. It's not that rubbing hair is bad, nor is it that perp dex has no room for imagination - but this kind of extremely hot KTV room has nothing to do with ordinary people. Just participate appropriately and understand the market hotspots. Don't go all in.

You can sleep well only when you have opportunities that are within your cognition but also unexpected.