With Binance once again under scrutiny from authorities it is a good time to look for censorship resistant, decentralized alternatives. This article will compare Perpetual Protocol, the most popular DEX for Perpetual Futures, with Binance Futures.
Overview
Availability
Since Perpetual Protocol does not require you to perform KYC anyone from anywhere can use the exchange. Geographical locks can be circumvented with a free VPN.
Binance on the other hand requires you to perform a KYC and does not allow users from certain regions, like the United States.
Winner: Perpetual Protocol
Security
Binance has custodial risks as it runs on centralized servers and you send them your tokens in order to trade. This means your assets and collateral run risk of being stolen through a server breach or hack.
Perpetual Protocol is non-custodial so your assets don’t leave your wallet until a trade is closed. You can use a secure hardware-wallet and have complete peace of mind.
Winner: Perpetual Protocol
Volume
Binance Futures currently facilitates around 10B$ daily volume, making it easy to trade large amounts with low slippage.
Perpetual Protocol currently has around 200m$ daily volume, so you might have higher slippage on larger trades above 2BTC.
Winner: Binance Futures
Transparency
Binance runs on proprietary software on centralized servers, and is essentially a black box. You will find numerous complaints about users having to deal with front running on their trades.
Perpetual Protocol executes all trades on the blockchain, giving it unparalleled transparency.
Winner: Perpetual Protocol
Features
Perpetual Protocol is currently still in V1 and missing some features, such as Cross-Margins. V2 will bring a lot of innovative features and is said to launch later this year. But until then, Binance takes this point.
Winner: Binance Futures
Conclusion
A close victory for Perpetual Protocol, the go-to choice for DeFi enjoyers and decentralization fans. Switching to an exchange without custodial security risk is always a good choice. It wouldn’t be the first time a centralized crypto exchange went AWOL and disappeared with millions of dollars.
Learn More:
https://www.binance.com/en/futures
https://www.perp.fi/