What is Perpetual Protocol Token? Who is the Founder? What makes Perpetual token unique?
Table of contents
- What is a Perpetual Protocol Token ?
- Perpetual Protocol Token – What is Perpetual Protocol ?
- Contract -Perpetual Protocol Token Contract
- Perpetual Protocol Token -Aims of Perpetual Contract
- How Perpetual Protocol Token – Aims to support Cryptocurrency
- How to Stake PERP
- What Are Perps In Crypto?
- Perpetual Protocol Token – Is Perpetual Protocol a good Investment ?
- What is Perpetual Protocol (P2)?
What is a Perpetual Protocol Token ?
PERP is an Ethereum Token that powers Perpetual Protocol. It is a decentralized exchange for perpetual contracts.
The decentralized autonomous organization (DAO) of the Perpetual Protocol issues “PERP” , the native token of the protocol.
This ETRC-20 – STANDARD TOKEN is a utility token for the protocol. Essentially, designed to facilitate and incentivize the governance process.
That is, holders of PERP tokens gain a proportional voting right according to their token holding.
Besides, the protocol offers staking for the users. Further , by locking up the PERP tokens in the staking pool for a certain period of time.
The protocol rewards the stakers in PERP tokens.
Perpetual Protocol Token – What is Perpetual Protocol ?
It is a decentralized leverage trading platform for crypto such as Bitcoin (BTC) and Ethereum (ETH).
Further, it is an on-chain perpetual futures DEX with deep liquidity and builder – ready composability.
Additionally, Users can open leveraged long or short trading positions for a variety of assets.
In simple words , traders use the concept of leverage to trade with funds that they don’t own . Additionally, they use assets as collateral in exchanges to obtain leverage.
Contract -Perpetual Protocol Token Contract
The protocol is a decentralized exchange (DEX) that uses a derivative . Essentially, which derives its value from another asset, called a perpetual contract.
The perpetual contract is one such leverage offering DeFi. Additionally, this contract aims to make price speculation easy for users without holding the asset.
Also, the protocol seeks to offer leverage of up to ten times for traders
It aims to offer a contract for every asset using a “Virtual Automated Market”, (vAMM).
In a DeFi ecosystem, an automated market maker (AMM) is a tool utilized to supply liquidity (token pool).
In addition to , without the intervention of a third party to set the price of an asset.
Perpetual Protocol Token -Aims of Perpetual Contract
It aims to virtualize AMMs , significantly. Further, by expanding the application space of AMMS and enabling perpetual contracts. A derivative , to eliminate the existing drawbacks of AMMS.
As a result unlike typical AMMS, Perpetual Protocol uses a vAMM for price discovery . The protocol uses vAMM, traders pay a lower slippage than AMMS. As AMMS cap the liquidity while vAMMS set it algorithmically.
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How Perpetual Protocol Token – Aims to support Cryptocurrency
Further, Perpetual Protocol aims to support varieties of assets such as traditional currencies, cryptocurrencies , gold and more.
This protocol uses the price feed of these underlying assets to offer support for the contracts. Importantly, as there is no swap on a vAMM . Traders who arrive with an asset X leave with an asset X instead of an asset Y as in AMM.
This mechanism makes the protocol operate without holding an underlying asset and use the price feed instead.
How to Stake PERP
The purpose of staking Perpetual Protocol to keep PERP off the market , while simultaneously ensuring the demand .
This purpose aims to allow the exchange to respond quickly in emergency scenarios. Such as, severe market movements. In order to cover any deficit , PERP tokens are sold at market.
As a result , the protocol incentivizes the stakers who shoulder this risk.
Consequently, the reward scheme of PERP has 2 stages.
- beta and stage 2 (yet to be launched)
In the stage 1 scheme , the protocol aims to grant 150k PERP as staking rewards each week in 2 ways. Namely, the liquid PERP rewards and the vested PERP rewards.
Firstly, the liquid rewards are based on trading fees that the perp exchange collects in a week.
Afterward, stakers receive 50% of the trading fees in PERP . Equivalent to US dollars. These PERP tokens are derived from the DAO reward pool . And are also available for withdrawal right away.
Secondly, vesting PERP rewards are distributed to stakers proportionately from the weekly reward pool.
These PERP tokens are then distributed proportionately to stakers. Additionally, these are and locked for 6 months .
To ensure the stakers are genuine traders who care about Perpetual Protocol rather than just aiming for a quick return.
What Are Perps In Crypto?
A perpetual contract is a derivative contract used in futures trading. Regular contracts
and call & put options have an expiry date, but a perpetual contract does not expire unless the trader chooses when it’s supposed to expire themselves.
Let’s say a trader purchases 100 call options on Bitcoin and they are in profit three months later.
They could sell these contracts at a higher price or they could keep them indefinitely – as long as they make a profit.
If the price moves against their trade, they could get liquidated and the contract would expire.
Perpetual futures are among the most traded assets in the world, with tens of trillions in daily trade volume.
In the crypto space, they’re a favorite and they recently surpassed spot assets in trade volume.
The main reason perpetual contracts are preferred by traders is that they let traders multiply their profits with leverage and also retain them indefinitely.
Perpetual Protocol Token – Is Perpetual Protocol a good Investment ?
Perpetual Protocol successfully boosts market sentiment among cryptocurrency enthusiasts . The “PERP” Coin could remain stable for the next five years.
According to experts, PERP will be green in 2026. Essentially , PERP is expected to reach and surpass its all time high in 2026.
Perpetual futures are cash-settled . Also, they differ from regular futures in that they lack a pre-specified delivery date.
And can thus be held indefinitely without the need to roll over contracts as they approach expiration.
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What is Perpetual Protocol (P2)?
As well as Uniswap v3, Chain link oracles are another fundamental component of Perpetual Protocol that determines the index price. This also means that any asset with a Chain link price feed can be listed on the platform as a perpetual market. In the future, Perp v2 will introduce permissionless markets.
How Is the Perpetual Protocol Network Secured?
Perpetual Protocol has been audited by Consensys and Peckshield. The protocol is community-governed and has a bounty program for developers that find bugs in the smart contracts. The network is on xDai, while the PERP token is an ERC-20 token on Ethereum.
ERC-20 is a token standard most new tokens follow when publishing on the Ethereum blockchain. Ethereum is one of the most popular blockchains for DAOs and is secured by a proof-of-work consensus mechanism that requires miners to mine new Ether. A set of decentralized nodes validates transactions and secures the Ethereum blockchain.
Perpetual Protocol uses Chainlink as oracle for funding rate calculations but does not have an on-chain oracle as a price engine to prevent the use of flash loans to manipulate the price of underlying assets and profit from Perpetual within the same transaction.
Community is a life blood of DeFi project and with the input of PERP token holders, there have been number of proposals passed through governance votes on Snapshot.
Perpetual Protocol ranks #351 .
PERP is built for community . Eventual goal is for it to be run by the community.
As it is a decentralized project, developers are betting on the Web 3 alternatives. Additionally, hosting the project on blockchain forever.
The protocol has gone up by 82.10% in the past 30 days. In the short term, Perpetual Protocol price prediction for April 2023 shows the average price of PERP at $1.34 and the highest possible price for April 2023, would be $1.43.
Perpetual Protocol was launched by Yenfen Weng and Shao-Kang Lee, two Taiwanese cryptocurrency entrepreneurs that previously had launched payroll & accounting companies for crypto startups. Most of the team is based in Taiwan. Perpetual Protocol is backed by many highly reputable investors, such as Zee Prime Capital, Multiarrows Capital, CMS Holdings, Binance Labs and Alameda Research, a strategic partner of FTX. With their backing, the company closed a Multicoin Capital-led seed round for $1.8M in 2020.
The goal of Perpetual Protocol is to create a perpetual contracts trading platform that anyone can use. To do that, users need to be able to trade with good liquidity and low slippage. Perpetual Protocol solves this by employing its vAMM solution. Perpetual Protocol doesn’t follow the usual order book model of centralized exchanges. Instead, traders trade against a virtual automated market maker, whose initial liquidity is set by the operator.
The total supply of PERP is 150 million. The current circulating supply of PERP is 68.7 million