Perpetual Protocol is a decentralized derivatives exchange operating on Ethereum and xDai, enabling traders to speculate on the future prices of crypto assets through perpetual futures contracts. These contracts have no expiration date, allowing traders to hold positions indefinitely. The protocol facilitates leverage trading up to 10X, providing amplified exposure to price movements. As a non-custodial platform, Perpetual Protocol grants traders full control and ownership of their assets for added security. Liquidity is sourced on-chain via a virtual automated market maker system designed to be market-neutral with collateralized pricing. The goal of Perpetual Protocol is to build an accessible, secure, decentralized trading venue for derivatives, aligning with the principles of DeFi and integrating with the broader DeFi ecosystem. With a focus on user experience and security, the protocol aims to attract both retail and institutional traders interested in speculating on crypto price movements without needing to own the underlying assets.
Perpetual Protocol is a decentralized derivatives exchange co-founded by Taiwanese entrepreneurs Yenwen Feng and Shao-Kang Lee, who have backgrounds in crypto startups and business software. Initially known as Strike Protocol, the project secured early backing from investors such as Binance Labs and evolved into Perpetual Protocol. Key milestones in its development include launching staking pools, introducing limit and stop-orders, and utilizing a virtual automated market maker to provide on-chain liquidity. Perpetual Protocol aims to create an accessible yet secure platform for decentralized derivatives trading. Its roadmap focuses on expanding to other chains, adding features like leveraged tokens, and improving liquidity dynamics. The project has undergone third-party audits and is supported by a Taiwan-based team with a community-governed structure. By enhancing its trading platform and cementing itself in the DeFi ecosystem, Perpetual Protocol seeks to fulfill its vision of an innovative decentralized exchange for crypto asset derivatives.
Perpetual Protocol utilizes an innovative virtual automated market maker (vAMM) for liquidity provision. The vAMM aims to be market-neutral and fully collateralized to provide predictable pricing and reduce impermanent loss risk for liquidity providers. Additionally, Perpetual Protocol offers gas-free deposits above 500 USDC and instant settlement on xDai to improve cost efficiency and user experience. These features lower the barrier to entry by eliminating transaction fees. Further distinguishing the platform is its decentralized autonomous organization (DAO) governance model, allowing PERP token holders to guide developmental decisions and future trajectory. The protocol's groundbreaking vAMM design, commitment to cost-effective usability, and community-driven governance collectively constitute an accessible, secure, and user-friendly decentralized derivatives exchange. Through these unique elements, Perpetual Protocol carves out a niche in the evolving DeFi landscape, attracting both traders and developers.
Perpetual Protocol is a decentralized derivatives exchange on Ethereum and xDai featuring a native ERC-20 utility token called PERP. Of the total 150 million PERP token supply cap, around 66 million are currently circulating. PERP tokens serve multiple functions including incentivizing participation, governance, and rewards. Tokens were strategically distributed among seed investors (4.2%), strategic partners (15%), team and advisors (21% with vesting), and ecosystem rewards (54.8%) governed by the community. PERP holders can stake tokens to participate in governance and earn staking rewards plus a share of trading fees, encouraging both active participation and passive income generation. Perpetual Protocol has undertaken audits by Consensys and Peckshield and operates a bug bounty program to ensure smart contract integrity. The protocol uses Chainlink as a tamper-proof oracle for funding rate calculations. PERP is traded on decentralized exchanges like Uniswap and centralized exchanges including Binance, Kraken and Gate.io, providing liquidity and market accessibility.
Perpetual Protocol is a decentralized exchange for futures trading on Ethereum and xDai that has made security and network integrity high priorities. Independent audits have verified the robustness of its smart contracts against vulnerabilities. The protocol also uses Chainlink as a tamper-proof oracle solution for key data like funding rate calculations, enabling fair and accurate trading. As an ERC-20 token, Perpetual Protocol benefits from the overall security of the Ethereum network and its proof-of-work consensus. Additionally, the protocol has a community governance structure where token holders can participate in decision-making and a bug bounty program to incentivize reporting of potential issues. These initiatives, along with partnerships with leading security firms, demonstrate Perpetual Protocol’s strong commitment to security through auditing, reliable oracles, established token standards, and proactive community participation in governance and ongoing enhancement.
Perpetual Protocol offers traders the ability to engage with a virtual automated market maker rather than traditional order books, allowing for predictable pricing and incentivized market equilibrium. By retaining possession of assets and settling all trades on-chain in USDC, the protocol aims to provide an attractive platform for trading perpetual contracts in a secure, decentralized manner. Notably, Perpetual Protocol does not charge on-chain trading fees and supports gas-free deposits over 500 USDC to lower barriers to entry. This furthers its goal of appealing to traders seeking to allocate more capital directly to trading activities. Liquidity for the native token PERP is supported through availability on major exchanges like UniSwapV2, Binance, Kraken and Gate.io. With accessible token liquidity and a design catering to efficient, cost-effective decentralized trading, Perpetual Protocol continues to draw interest around its innovative approach to crypto derivatives.
Perpetual Protocol is a decentralized finance (DeFi) platform that facilitates non-custodial trading of perpetual futures contracts through an automated market maker model. Leveraging the Ethereum and xDai blockchains, it allows traders to speculate on the future prices of various cryptoassets with up to 10x leverage. The protocol has its own governance token, PERP, which gives holders decision-making power and enables them to earn staking rewards. As Perpetual Protocol continues expanding its features and liquidity pools, it aims to further decentralize derivatives trading. Its innovative virtual AMM, integration across multiple chains, and community-driven approach position Perpetual Protocol as an influential project in the evolving DeFi landscape.
The information presented in this article is intended for general education purposes only. Readers should conduct independent research and consult with financial advisors before making investment decisions, as the cryptocurrency market is volatile. This article should not be taken as endorsement or financial advice. The author is an independent researcher not affiliated with Perpetual Protocol or the PERP token. While Perpetual Protocol's technology and position in decentralized finance are discussed, this does not constitute a recommendation to purchase PERP. Readers assume full responsibility and risk for their investment choices.
Perpetual Protocol has been making strides in its technological development. The platform has introduced advanced order types, including limit and stop-loss limit orders, enhancing trading flexibility. It has also rolled out a new tokenomics model, vePERP, which aims to create long-term alignment between governance participants and the success of the system. Furthermore, Perpetual Protocol has updated its liquidation mechanism to prevent cascading liquidations, a move that enhances the stability of the platform.
Recent news about Perpetual Protocol includes the launch of innovative products. The platform has introduced the 3x ETH Dynamic Leverage Index, a product that allows participants to leverage a collateralized debt position efficiently. Additionally, Perpetual Protocol has initiated Pool Party, a liquidity mining initiative that rewards liquidity providers based on the volume they facilitate in any market.
Perpetual Protocol has been actively engaging with its community and providing educational resources. The platform has held community calls to keep users updated on its developments and future plans. It has also published articles on various trading strategies, including stop-loss orders and basis trading, to educate its users on effective trading techniques.
Looking ahead, Perpetual Protocol has exciting plans. The platform is working on launching a PERP staking program and is also considering adding $OP as a new collateral type. With these developments, Perpetual Protocol continues to innovate and provide value to its users.