If you've been following the evolution of decentralized finance (DeFi), you know that perpetual futures—often called "perps"—have been a game-changer for crypto trading. These are essentially futures contracts that don't expire, allowing traders to take leveraged positions on assets without worrying about settlement dates. Now, imagine extending that to traditional equities like Tesla or Nvidia stocks. That's the buzz around equity perpetuals, and a recent tweet from @0xsudogm sheds light on why this could be massive, not just for trading volumes but for the entire onchain ecosystem.

The conversation started with a post from @gdog97_, founder of Ethena Labs, who pointed out that crypto perps have already spawned billion-dollar businesses on a $4 trillion asset class. Equities, however, dwarf that at over 30 times the size. He argues that perps, rather than options, are the ideal tool for retail traders seeking simple leverage. The potential? Bigger than Robinhood's current market cap. And he shouts out @sershokunin for pioneering this space.

Diving Deeper into Equity Perps

Equity perpetuals bring stock trading onchain, meaning you can bet on the price of shares like TSLA or NVDA using stablecoins like USDC, with leverage up to 20x, all without traditional brokers. Platforms are emerging to make this happen, blending the speed of crypto with the vast world of stocks. As seen in the interface above, these perps list symbols like XYZ100-USDC or GOLD-USDC, showing real-time prices, funding rates, and open interest—key metrics for traders.

But @0xsudogm highlights what's often overlooked: the ripple effects.

Expanding Horizons for DeFi Protocols

Take Ethena, for instance. This protocol issues a synthetic stablecoin (USDe) backed by delta-neutral positions, often involving perps to hedge and earn funding rates. With equity perps exploding, the total addressable market (TAM) for open interest (OI)—the total value of outstanding contracts—could balloon 30x beyond crypto alone. That means Ethena's assets under management (AUM) ceiling skyrockets, attracting more capital and liquidity to DeFi.

The Weekend Price Discovery Revolution

Traditional stock markets close on weekends, but crypto never sleeps. If equity perps gain traction, price discovery—the process where market prices reflect new information—could shift to onchain venues even when Wall Street is off. Traders would need to keep capital onchain to catch those moves, pulling more funds into blockchain ecosystems. It's a virtuous cycle: more attention leads to more liquidity, which draws even more participants.

Building the Decentralized NASDAQ

Ultimately, this points to onchain capital markets as the future—a "decentralized NASDAQ" or even an "AWS for liquidity," where anyone can access global assets 24/7 without intermediaries. It's not just about trading; it's infrastructure that could redefine how we think about finance, making it more inclusive and efficient.

This thread is a reminder that crypto's innovations aren't isolated—they're building blocks for a broader financial revolution. If you're in blockchain, keep an eye on equity perps; they might just be the catalyst for the next wave of growth.