What is Perpetual Protocol (PERP)??

Perpetual Protocol is a decentralized perpetual contract protocol for any asset, implemented by the Virtual Automated Market Generator (vAMM).

Like , traders can trade directly with vAMM without the need for a liquidity peer. vAMMs provide guaranteed on-chain liquidity at predictable prices (using of the ) is designed to be market-neutral and fully collateralized.

Holder can become a staking by staking tokens that they own into the Staking Pool. In return, stakingers will receive a portion of the transaction fee in () plus PERP rewards.

What is vAMM (Virtual AMMs)??

In contrast to applications that use automated market makers () for token swap like and Balancers; Perpetual Protocol uses a constant product curve in project to determine the price of an asset to handle leveraged and short-selling transactions.

The uniqueness of vAMM

No liquidity provider needed

The asset stores will always have enough collateral to pay all traders on the vAMM. In contrast to the liquidity on the AMM mechanism on other platforms that comes from the liquidity providers contributing the assets, but with Perpetual, the liquidity for the vAMM comes directly from the storage of the assets outside of the vAMM. In other words, there is no need for the existence of liquidity providers, but the vAMM still works: traders provide liquidity for each trade themselves.

Since there is no need for a liquidity provider in the vAMM, there is no loss caused.

Slippage management

For vAMM, trading will be less prone to slippage than regular AMM

For conventional AMMs, the only way to increase the value of the variable K is:

1) incentivize multiple liquidity providers to provide more liquidity, or

2) increase trading fees and restructure trading profits to provide more liquidity.

In contrast, in vAMM, since the value of K is manually set by the vAMM operator at launch, it can increase or decrease arbitrarily at any time, even after the vAMM is created, making the market responsive to the latest conditions. However, no one can move the assets stored inside the Vault. The vAMM operator will be the team Perpetual Protocol in the first version and transition to the structure after that.

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While the first version of Perpetual Protocol will set the K variable manually, in the future this K variable will be set algorithmically. For example, the variable K can be set as a function of volume, open interest, funding payments, volatility, and others.

Setting the value of the variable K is a serious consideration. If K is too low, then the trade will slip too much and will not want to trade in the platform. However, if K is too high, then arbitrageurs will not have enough capital to keep the vAMM price in line with the underlying index price.

When the platform receives user feedback on this K variable value, the platform considers to convert Perpetual Protocol from manual selection of K or algorithmic selection.

What is a perpetual contract??

Perpetual contracts allow traders to predict the future price of an asset by opening a long position or opening a short position. Unlike conventional futures contracts; perpetual contracts do not expire and remain in effect until the trader closes their position.

The price of a perpetual contract will often differ from the price of the asset in the spot market. These spreads signal the psychology of traders. If the majority of traders expect the underlying asset to increase in value over time; the price of the perpetual contract will likely exceed the spot price. Likewise, if most traders expect the price to fall, the perpetual contract price will be lower than the spot price.

There are two mechanisms that control the spread and keep the perpetual contract price closest to the spot price:

  • Funding payments
    Every hour, traders with long or short positions will pay each other a certain amount, depending on market conditions. If the contract price is higher than the spot price; The person who opens a long position will pay the person who opens a short position. If the contract price is lower than the spot price; The person who opens a short position will have to pay the person who opens a long position. The size of this payout is equivalent to the difference between the contract price and the spot price, as well as the size of the trader's position.
  • Arbitrage
    If the contract price differs significantly from the spot price on other exchanges. Traders can profit on the spread, which makes the perpetual contract price and the spot contract price in balance.
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How Perpetual Protocol works

Trading perpetual contracts on the platform of Perpetual Protocol is largely similar to trading perpetual contracts on centralized exchanges.

The main difference is: Perpetual Protocol does not use an order book (list showing buy and sell orders) – transactions are executed instantly and without waiting for counterparties and without paying taker fees. ).

Transactions on Perpetual Protocol will settle at a slower rate than centralized exchanges, especially when dealing with high volumes.

To overcome the above problems, the project provides slippage controls and all trading activities take place on xDai. This makes the transaction speed on the protocol significantly faster than the base layer .

Basic information about PERP token

  • Token Name: PERP Token
  • Ticker: PERP
  • :
  • Contract: 0xbc396689893d065f41bc2c6ecbee5e0085233447
  • Token types: Utility token
  • Standard Tokens: -20
  • Total Supply: 150,000,000 PERP
  • Circulating Supply: 21,913,135 PERP

Token Distribution

What is Perpetual Protocol (PERP)?
  • 7,500,000 PERP: Balancer LBP.
  • 36,000,000 PERP: Team and Advisory Board.
  • 6,250,000 PERP: Labs, invested in the development of Perpetual about 2 years ago.
  • 22,500,000 PERP: Strategic Investors.
  • 77,750,000 PERP: Ecosystem and rewards

What is PERP token used for?

PERP is a utility token designed to encourage decentralized management of the protocol. The voting power of PERP token holders in the protocol will be proportional to the number of tokens they hold.
The 2 main functions of PERP token are:

  • Governance
    Users can stake PERP tokens on the protocol to get the right to vote or suggest ideas to improve the Perpetual Protocol.
  • Staking
    Users can stake PERP tokens into staking pools to receive rewards.

PERP token storage wallet

PERP is an ERC20 token, so you will have a lot of wallet options to store this token. You can choose from the following wallets:

  • Floor wallet
  • The wallets common: , Myetherwallet, Mycrypto, Coin98 wallet
  • Cold wallets: Ledger, Trezor
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How to earn and own PERP tokens

  • Buy PERP tokens directly on the exchange.
  • Stake PERP tokens into the protocol to receive rewards.

Where to buy and sell PERP tokens??

Currently PERP token is being traded at many different exchanges; with a total daily transaction volume of about 7 million $. Exchanges that list PERP tokens include: Uniswap, MXC, , Bkex, BitZ, LBank, Hotbit, Gate.io, Bibox.

Roadmap

In the first quarter of 2021; The project will deploy the following items: Transaction Mining, Stats dashboard (ecosystem), Staking Pool, Trading interface redesign, Keeper Bots (open source).

The project also plans to implement: xDai Native UI, Limit, Stop Orders, Mobile UI (eg for use with Mobile) but there is no specific time.

Strategic investors Perpetual Protocol

Perpetual Protocol officially announces that it has raised $1.8 million in a strategic round led by Multicoin Capital with participation from Zee Prime Capital, Three Arrows Capital, CMS Holdings, LLC. And , who is a strategic partner with . Other funds include Labs, Andrew Kang, George Lambeth, Calvin Liu, Tony Sheng, Alex Pack and Regan Bozman are also backers of Perpetual Protocol.

The names Binance Labs, …with projects that have grown strongly in the past time, it has proved the investment in depth in space their. They not only support the fund for the development project, but also connect the project to the community more. Even that, the belief in listing on major exchanges like Binance, FTX is obvious… And since then, the level of project hype has increased significantly.

Conclude

Perpetual Protocol is a potential project in the field ; the project allows users to trade futures contracts of a variety of assets on the platform of the . Currently, the global traditional forex market capitalization is in the trillions of dollars; If a small part of this money goes to blockchain-based protocols, then projects like Perpetual Protocol will make great strides in the future.

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