What Is Decibel? Inside Aptos Labs’ On-Chain Futures Platform and Its Expansion Plans

Decibel is a fully on chain perpetual futures exchange incubated by Aptos Labs and built on the Aptos network. It is designed to move every core trading function onto the blockchain, including order matching, clearing, and risk management. Rather than relying on hidden systems, Decibel makes its processes publicly verifiable through smart contracts. The goal is simple: combine the structure of a traditional order book with the transparency of decentralised infrastructure.

Key Takeaways

• Decibel is a fully on chain perpetual futures exchange on Aptos.
• All orders, matching, and risk controls run through smart contracts.
• The roadmap includes spot markets and tokenised real world assets.

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How Decibel Works on Aptos

Decibel operates using a Central Limit Order Book model, a structure commonly used in traditional financial markets. Instead of relying on automated market makers, it allows buyers and sellers to place orders into a shared order book. Trades are matched based on price priority first and time priority second. What makes Decibel different is that this entire process runs fully on chain through smart contracts on the Aptos network.

Trading Model Explained

Core Structure: Central Limit Order Book
Matching Method: Best price first, then earliest order
Execution Layer: Fully on chain

This means:

• Traders submit buy or sell orders to a public order book
• Orders are matched automatically by predefined rules
• No private matching engine operates behind the scenes
• Every match is verifiable on the blockchain

By keeping order matching on-chain, Decibel combines a familiar trading structure with blockchain transparency.

Fully On Chain Execution Flow

Every step of the trading lifecycle is processed through smart contracts. There is no off chain intervention in core exchange functions.

On Chain Processes Include:

• Order submission
• Trade matching
• Margin calculation
• Mark price updates
• Liquidation triggers
• Final settlement

Because these rules are written directly into code, they are deterministic and transparent. Traders can review how margin thresholds and liquidation logic operate before volatility occurs. This reduces uncertainty around risk handling during market stress.

In practice, this structure aims to replace opaque systems with publicly auditable logic.

From Testnet to Mainnet

Before launching on mainnet, Decibel completed a large-scale testnet phase. This phase provided real world data about performance and user activity.

Testnet Metrics:

• More than 700,000 unique accounts
• Over 1 million daily trades
• Significant pre deposited capital

These figures demonstrated early engagement and allowed the protocol to test execution speed, liquidity behaviour, and risk controls before live deployment.

Why Aptos Infrastructure Matters

Decibel is incubated by Aptos Labs and built on Aptos, a Layer 1 blockchain designed for high performance.

• Key technical features include:
• Sub second transaction finality
• Parallel transaction execution
• High throughput capacity

For perpetual futures trading, execution speed directly affects order placement, cancellation timing, and liquidation accuracy. By combining fast infrastructure with fully on chain logic, Decibel attempts to narrow the gap between centralised exchange efficiency and decentralised transparency.

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Core Features and Infrastructure

Decibel’s infrastructure centres on transparency and verifiable execution. Its fully on chain order book ensures that every trade and settlement can be publicly confirmed. There is no off chain matching engine making discretionary decisions.

Risk management is embedded directly in the protocol. Margin requirements, liquidation thresholds, and auto deleveraging mechanisms are enforced by smart contracts. This removes opaque intervention and provides clarity on how positions are handled under stress.

The platform also includes a native liquidity and backstop mechanism designed to support market stability during volatile periods. Risk parameters were developed in collaboration with Gauntlet, known for quantitative modelling in decentralised finance.

Cross chain participation is supported, allowing traders to bring capital from networks such as Ethereum and Solana. This reduces friction for users who operate across multiple ecosystems.

Price data and liquidation infrastructure are powered by Chainlink, which supplies external market data to help reduce pricing anomalies. Together, these components aim to create a trading environment that balances openness with operational reliability.

Read Also: Is Aptos Warming Up to the US Government?

Expansion Plans Beyond Perpetual Futures

While Decibel launches as a perpetual futures exchange, its long term ambition is broader. The Decibel Foundation has outlined plans to expand into spot markets, allowing direct trading of underlying digital assets.

Another planned development is a unified account system with multi collateral support. This would enable traders to manage different asset types within one account structure, improving capital efficiency.

Beyond crypto assets, the roadmap includes tokenised real world assets. These may include equity indices, foreign exchange markets, and other traditional financial instruments brought on chain. The intention is to build a comprehensive exchange stack capable of settling various asset classes within a transparent framework.

Perpetual futures remain one of the fastest growing segments of decentralised finance. By combining an on chain order book with integrated risk controls, Decibel positions itself within a broader shift toward more open and verifiable market infrastructure.

Read Also: APT Price Analysis: Did the Recent Token Unlock Trigger

Conclusion

Decibel is an on-chain perpetual futures exchange built on Aptos that moves the full trading lifecycle onto the blockchain. Orders, matching, settlement, and risk management all operate through smart contracts, increasing transparency and reducing reliance on opaque systems.

Its early testnet activity demonstrated market interest, and its roadmap signals plans to expand into spot markets and tokenised real world assets. As decentralised finance evolves, platforms like Decibel reflect a growing focus on combining performance with public verifiability in digital asset trading.

FAQ

What is Decibel?

Decibel is a fully on chain perpetual futures exchange built on the Aptos blockchain.

How is Decibel different from other decentralised exchanges?

It uses a central limit order book that operates entirely on chain, rather than an automated market maker model.

What role does Aptos play?

Aptos provides the blockchain infrastructure that enables fast execution and on chain settlement.

Does Decibel only support crypto derivatives?

At launch it focuses on perpetual futures, but future plans include spot markets and tokenised real world assets.

Why is on chain risk management important?

It ensures margin and liquidation rules are transparent, consistent, and verifiable by all participants.

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