I held positions for three months during a bear market, and the funding rate ate 8% of my profit.
I've always wanted to find a way for the position itself to generate revenue.
Recently I saw @StandX_Official's conviction holder experiment, tried it, and found the idea quite interesting.
In short:
You open a position using $DUSD as margin.
During the holding period, it automatically generates yield (they call it Position Yield), and the position also shares protocol fees.
The longer you hold, the larger the position, the more share you get.
The official even called it out directly:
"In a bear market, those of you holding conviction trades are the true heroes of the arena. Position yield is designed for you."
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I looked at the mechanism; it mainly consists of two parts:
Position Yield: the position itself makes money.
The source of the yield is actually quite simple.
DUSD itself yields (currently around 2.5%).
This is the base; you can earn it even without opening a position.
Then there is protocol subsidy multiplied by your leverage.
For example, if the protocol subsidy base is 2% and you use 3x leverage, that's 2% × 3 = 6%.
This part comes from protocol fee sharing.
So with 3x leverage you can earn 2.5% + 6% = 8.5% annualized.
The longer you hold, the larger the position, the more share you get.
But I noticed an issue:
This yield depends on a delta‑neutral strategy.
In plain terms, it’s spot staking plus funding‑rate arbitrage.
If the funding rate stays negative for a long time, or the protocol’s trading volume is insufficient, the yield will be discounted.
I tried it and it felt okay, but long‑term stability still needs to be seen.
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Block Trade: large orders don’t have to eat depth.
I think this feature is quite clever.
In traditional on‑chain trading, if you want to place a large order,
you either hit the order book depth directly (high market impact), or split it into smaller orders over time (time‑consuming).
StandX’s Block Trade lets you post a "block order" and wait for a counterparty to match.
You can place multiple block orders below the mark price, and wait for a whale looking to sell to come to you.
This way you don’t push up the spot order book, and the impact cost is much lower.
You can also click the counterparty’s name to view their recent 32 trades (privacy mode, selective transparency).
This design is somewhat like on‑chain OTC, but retains transparency.
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Their positioning: perpetual contracts are not just about betting direction.
StandX is not focused on high‑frequency trading volume.
Instead, they want perpetual contracts to evolve from speculative tools into long‑term asset‑management tools.
Traditional perp DEXes (dYdX, GMX, etc.) mainly compete on volume, liquidity, low slippage.
StandX’s focus is "making margin work continuously" and "allowing long‑term holders to earn money".
The idea is interesting, but so far we only see the Position Yield and Block Trade features.
Whether they can be truly realized remains to be observed.
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My view
This design indeed solves a real pain point: long‑term holders earn nothing in a bear market.
In traditional DeFi, holding spot assets generates no yield (unless staked), and going long on perpetuals requires paying the funding rate.
StandX uses a delta‑neutral strategy to let the position itself generate yield, which is a good idea.
Block Trade is also practical. Large orders don’t have to eat depth; you can post block orders for whales to match, reducing impact cost.
But there are a few aspects I’m still watching:
▪️ Yield stability
The delta‑neutral strategy’s yield depends on protocol trading volume.
Currently 24h Perps volume is about $420M, TVL around $99.76M.
It looks okay, but in a bear market low volume means lower yield.
Whether it can sustain is uncertain.
▪️ Gap between concept and implementation
"Perpetual contracts becoming asset‑management tools" is a big concept.
We only see two features so far, still a distance to full implementation.
The project is still early.
There are roughly 230k DUSD holders, indicating some user base, but long‑term data is needed.
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If you are:
→ Long‑term bullish on an asset but don’t want to just hold spot
→ Want to earn additional yield while holding
→ Have large orders that need low‑impact execution
You may want to keep an eye on it.
But remember, DeFi is always: small test → on‑chain data check → DYOR
The above content comes from StandX; feel free to point out any mistakes, not investment advice.
