Most people are probably still confused, why did Perp Dex suddenly become popular? Is it really because @ cz-binance is the first to call out the Single King in the universe, or is it because @ cz-binance wants to fight against the game saved by @ HyperliquidX? Yes, but it's not that simple: Following the logic of the previous article, I would like to add another insight: Perp Dex, led by Hyperliquid, is not revolutionizing centralized CEX in a decentralized DEX manner, but has invented a new species: Neutral Exchange. Oh, I've coined a new word again. Why do they look so much like "neutral people"? That's right, in the context of Crypto, it means an exchange that is neither purely decentralized nor so blatantly centralized. Why do you say that? For example, Hyperliquid has a very decentralized aspect, with on chain asset custody, separation of execution engine, consensus layer, and application layer, all verifiable on its own independent chain, user controlled private keys, no need for KYC, open source code, and other features. This is indeed very web3; But to be honest, a group of fundamentalists criticize its lack of verification nodes and centralized control, as well as the fact that many operations in the execution layer do not require complete consensus confirmation in order to optimize transaction execution speed. This is very different from traditional concepts such as on chain transaction settlement finality and blockchain synchronization. The contradiction in this aspect of Perp Dex, which is still in its infancy, is even more prominent. In addition to the technical features that I mentioned earlier, which are still black box, there are many strange features, such as closed source, no blockchain browser, only partial state update data synchronized to L1, and even complete on chain records. Of course, this type of variant, as well as some other high-performance L1 and Layer2 variants, have precedents aimed at achieving a triangular balance between decentralization, performance, and security. But this wave of variations of Perp Dex is more thorough. For example, Ethereum layer 2 replaces decentralization with a centralized Sequencer, but has also been working on the technical roadmap of Fault Proof and Stage0-2 for a long time. The new force Perp Dex, naturally adhering to the first principle of transaction efficiency, even boldly criticizes them as not being blockchain. At this point, you may guess where I stand? I embrace the market. Because this is the "Soul Fusion Technique" that emerged from the long-standing liquidity tug of war between CEX and DEX In other words, this "neutral" characteristic is actually an inevitable trend of evolution: 1) The user experience of pure decentralized DEX has been plagued by slippage, MEV, gas fees, complex liquidity management, component stacking security risks, and more, which seriously slows down the speed of large-scale adoption of Crypto infrastructure; 2) Traditional centralized CEX is a combination of regulation, compliance, trust crisis, and the use of attention grabbing advantages to squeeze liquidity from the entire industry, in other words, it stifles all on chain innovation in its cradle; You see, a 'neutral' exchange happens to be stuck in the middle, retaining a CEX level user experience while making some compromises and innovations in asset security and transparency. Its appearance can actually declare the reconciliation of the long-standing enmity between CEX and DEX. So, the emergence of Hyperliquid did not pose a threat to Binance at all. On the contrary, it achieved Binance like a catfish and helped BNB break through the thousand. At this moment, the CEX exchanges that are burying themselves in Alpha, wallets, and trading chains no longer have to worry about the moral blackmail of so-called "decentralized fundamentalism". They can use the name of a "neutral exchange" to blow bubbles and proudly indulge themselves.