Pika Protocol

Pika ProtocolPika Protocol is a stablecoin protocol backed by decentralized derivatives. It consists of two components: Pika Exchange and PIKA Stablecoin.

Pika Exchange is a perpetual swap exchange that supports leverage trading. It supports token based inverse perpetual swaps. The underlying of the exchange is a virtual automated market maker(vAMM).

• Capital Efficient: a PIKA is minted by depositing one dollar value of supported tokens(e.g., ETHETH, WBTCWBTC), achieving better capital efficiency than overcollateralized stablecoins.

One of the easiest ways to transform any token into dollar exposure is perpetual swap contracts. For example, Bitmex offers a BTCBTC/USDUSD contract that is margined in BTC. This contract is structured like non-linear inverse future contracts, meaning the contract value is measured in one currency, USD, but the position is margined and settled in a different currency, BTC. If a user opens a 1x short position, this gives the user a dollar exposure with the ability to earn yields from funding payments. This way of hedging is in fact widely adopted by traders to get exposed to dollar exposure.