How dYdX Powers Always On Derivatives with Pyth Indices

dYdX is bringing traditional asset derivatives into always on markets with Pyth Indices. By integrating Pyth’s continuous, multi source pricing infrastructure, dYdX can support perpetual contracts on assets such as oil even when traditional markets are closed.

Products

Indices

Challenge

DeFi markets operate continuously. Traditional financial markets do not.

For dYdX, this creates a challenge when offering perpetual contracts tied to commodities and other real world assets. Oil markets close on weekends and holidays, while a perpetual contract remains active and still requires a reliable price for trading, liquidations, and funding calculations.

Historically, venues had two options:

  • Price assets from their own internal order books, increasing reliance on venue-specific pricing.

  • Build custom logic to estimate prices during periods when traditional markets are closed, without an independently sourced reference

dYdX needed pricing infrastructure that could keep pace with the always on nature of decentralized markets.

Solution

dYdX integrated Pyth Indices to provide continuous, multi source reference data for its trading products.

Pyth sources prices directly from more than 120 institutional publishers, including exchanges and market makers. This gives dYdX access to price discovery across onchain and offchain venues, including periods when traditional exchanges are closed.[6]

A key part of the integration is the Pyth 24/7 Oil Index. As a launch partner, dYdX can offer oil perpetuals that remain active and priced through weekends and holidays.

The result is a pricing layer designed specifically for markets that never close.

Impact

Using an external, multi-source index also gives dYdX a transparent reference price for liquidations and funding calculations.

The integration creates a repeatable model for expanding dYdX into additional traditional assets while preserving the continuous trading experience that defines decentralized markets.

With Pyth Indices, dYdX brings traditional asset exposure into a market that operates 24/7.

Success Stories