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Perpetual Protocol

Perpetual Protocol

Perpetual Protocol is a capital efficient perpetual futures DEX. Traders and LPs can use 10x leverage on the platform while maintaining control of their assets.

Overview

Perpetual Protocol seeks to create a perpetual contracts trading protocol that anyone can use. Users will be able to trade with good liquidity and low slippage thanks to our innovative vAMM-based exchange. They use a scaling technology called xDai to increase the speed of trades compared to other Ethereum-based exchanges, as well as to offer zero gas fees on all trades.

Trades on Perpetual Protocol settle in USDC, so all collateral used on the exchange is in USDC.

Perpetual Protocol uses a streamlined system to allow traders to gain the benefits of xDai scaling without having to set up your wallet. Simply use your existing wallet to 'deposit' USDC via our trading interface, and you are ready to trade. Your funds are controlled by your Metamask wallet or other compatible wallet at all times during the trading process.

Stakers on Perpetual Protocol enjoy zero impermanent loss risk while earning fees and rewards on their staked PERP tokens. This is because staked PERP tokens are not stored in our vAMM or used for liquidity — they are safely stored in the smart contract vault and not a liquidity pool, and are therefore not exposed to impermanent loss.

Differences of trading on Perpetual Protocol platform:

  • Perpetual Protocol does not use an order book - trades are filled right away and there is no need to wait for a counterparty or pay a taker fee.

  • Trades settle somewhat slower than on centralized exchanges, especially during high volume - to mitigate this, we provide slippage controls, and all trading operations take place on xDai, which is significantly faster than the Ethereum base layer.


Trading can result in financial loss, although with Perpetual Protocol, users are assured of never losing more than their initial investment.

Perpetual contract basics

Perpetual contracts are a type of futures contract, pioneered in the cryptocurrency space by Bitmex. Perpetual contracts are one of the most popular derivative products in the space.

Perpetual contracts allow traders to speculate on the future price of a given asset by buying (going long) or selling (going short) perpetual futures contracts. Unlike typical futures, perpetuals do not expire and remain effective until the trader closes their position.

The price of perpetual contracts will often diverge from the broader market (aka spot market). These deviations signal sentiment on the exchange - if a 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 price of the perpetual will be below the spot price.

There are two mechanisms that moderate this process, and function to keep the perpetual contract price close to the spot price.

  • Funding payments

Every hour, traders with open long or short positions will pay each other a funding payment, depending on market conditions. If the contract price is above the spot price, longs will pay shorts. If the contract price is below the spot price, shorts will pay longs. The size of the funding payment is a function of the difference between the contract price and the spot price, as well as your position size. This incentivizes traders to take the unpopular side of the market.


  • Arbitrage

If the contract price diverges significantly from the spot price in other exchanges, arbitrageurs can benefit in two ways. 1. If they hold a position elsewhere, they can use Perpetual Protocol to take the inverse position and earn funding payments. 2. They buy or sell an asset elsewhere, and long or short that asset using Perpetual Protocol, in the expectation that the price will tend to move back toward the spot price.


Timeline

February 14, 2022
Introducing MacBook Mania! | Perpetual Protocol

To celebrate the launch of our referral program for Perp V2 (which is open for everyone to join), we’ll be running a competition where you can win 1 of 30 new 14” MacBook Pros and Perpetual Protocol merch!

Overview of MacBook Mania

Starting on February 18th, we’ll be running a competition for referral partners and referred traders over the course of two weeks. At the conclusion of the event, the top 5 referral partners will be eligible for prizes, while other winners will be randomly selected from the set of qualified referral partners and referred traders. Note: we have the right to disqualify those who are found to be cheating.

20 MacBook Pros: 20 eligible referral partners picked at random

5 MacBook Pros: Top 5 referral partners

5 MacBook Pros: 5 eligible referral traders picked at random

1,000 Perp T-shirts: First 1,000 traders

There’ll be two ways you can enter the competition:

Enter as a Referral Partner

Enter as a Referred Trader

Requirements for Referral Partners

Both new and existing referral partners are able to enter the giveaway. Signing up as a referral partner is very easy. It can be done within a minute with only 5 steps. Follow the walkthrough here or visit https://referral.perp.com/ to begin.

To become eligible for the giveaway, you must:

Refer a minimum of 10 new traders using your unique referral link between 3am UTC, Feb 18–3am UTC, Mar 4,

At least 10 of your new referred traders must each generate at least $5,000 in trading volume

Tweet out a promotional post for your referral link

At least 10 of your qualified traders must reply to your promotional tweet with an ETH address that we will verify

DM us on Twitter your promotional tweet thread when you qualify

Like and retweet Perp’s announcement tweet

Prizes for Referral Partners

Out of the eligible referral partners, 25 will win the new 14” MacBook Pros as prizes!

The top 5 referral partners will be awarded MacBooks, based on who has referred the most traders (they must conduct $5,000 or more in volume). Another 20 MacBooks will be awarded via random selection.

You can check all of your referral stats here.

Requirements for Referred Traders

To become eligible for the giveaway, you must:

Generate at least $5,000 in trading volume using a referral code between 3am UTC, Feb 18 and ends 3am UTC, Mar 4

After using a referral code, paste your ETH address as a reply to the referral partner’s tweet (you must like and retweet the partner’s tweet as well)

Like and retweet Perp’s announcement tweet

Start Trading Here: https://app.perp.com/

Prize for Referred Traders

We’re also rewarding traders who are new to Perpetual Protocol!

We’re giving away 5 new 14” MacBook Pros to referred traders who qualify via random selection.

The first 1,000 new traders to sign up through a referral link from 3am UTC, Feb 18 to 3am UTC, Mar 4 will receive a Perp-branded t-shirt by receiving a gift card to use in our merchandise store. No trades have to be made for the t-shirt.

More Details About the V2 Referral Program

To get started, create your own referral code by visiting referral.perp.com and connect with your MetaMask wallet via the Optimism Network. Click on ‘I am a referrer’, enter your referral code and then click on ‘Create’. You can then promote your referral code to increase your earnings.

The major benefit of joining our referral program is that you can earn PERP for bringing new traders to Perp V2!

The more trading fees your referred traders generate, the greater your rewards. To see how many PERP tokens you can earn, check out the table below. Earnings are based on the trading fees generated by your referred traders, which is then multiplied by a rebate percentage (based on your staked PERP) and we sum these figures across all of your referred traders. All referral rewards are calculated at 00:00 UTC each Sunday with PERP rewards being paid out via the Optimism network.

While the new program will be open to everyone, we’ll also be introducing two VIP tiers, which offer a rebate of up to 55% for referral partners who meet two requirements:

Exclusivity to Perpetual Protocol in the area of decentralized derivatives, and

Minimum fee generation from referral traders.

Note: Traders who want to trade directly with the contract will need to supply the “referralCode” argument to the position methods on the contract.

By using a referral code, referred traders enjoy a 20% rebate on their trading fees with a cap based on the number of PERP tokens they have staked (shown by the table below).

We want to thank everyone in advance for taking part in our referral competition and we wish you good luck. If you have any questions about the competition or our new referral program, please feel free to contact us via Discord!

Prizes distribution: For MacBook Pro winners, we will send qualified winners an Apple gift card to make their purchase; For Perp merch winners, a gift card to our merch store will be sent.

Winners:

Period: MacBook Mania starts at 3am UTC, Feb 18 and ends 3am UTC, Mar 4.

Total prize pool: 30 new 14” MacBook Pros and 1,000 Perpetual Protocol t-shirts!

February 11, 2022
Guest Post by Perpetual Protocol: Perpetual Protocol and TrueFi Launch First Lending Portfolio | CoinMarketCap
January 28, 2022
Introducing the Movr Network Bounty | Perpetual Protocol

Claim a $10,000 bounty if you can build a Perpetual Protocol focused front-end for the Fundmovr app!

As we look back on L222, we’ll be thankful for the benefits enjoyed by users but first we have to overcome some growing pains. One of the hurdles faced by projects shifting to Layer 2 is the bridging of assets.

One way we can do this is to make bridging more user friendly and remove the barrier to trading derivatives on Optimism! Right now, users need to leave the Perp application interface and explore different bridging options, all with their own trade offs. To make bridging more seamless, we’re offering a $10K bounty in partnership with Movr Network to build a Perp Bridge powered by FundMovr APIs.

Movr Network enables apps to make their UI multi-chain UX seamless. Apps can transfer msgs or assets across chains using Movr to allow users from any chain to interact with them easily!

FundMovr by Movr Network enables easy cross-chain swaps and transfers. It aggregates all bridges, DEXs and DEX aggregators to provide efficient and easy fund movement across chains.

Earlier in January, our Grants Committee approved the bounty for $10,000 to build a Perp bridge UI for FundMovr, which will make it easy and efficient for users on other chains to transfer their assets to and from Optimism. Half of the payout comes from Perp’s treasury while the other half is from Movr Network.

The goal of the bounty is to create a front end for the FundMovr app styled in the design of the Perp v2 website. FundMovr shows all possible routing options and which bridge is being taken when transferring assets. With this Perp-themed bridge, depositing ETH and USDC to trade on-chain derivatives will be a lot smoother.

Instead of navigating different routes yourself, FundMovr will find all the available routes and sort them by: the maximum output (ETH) on the destination chain, the minimum gas fee for swap and transfer, and the lowest bridging time.

The bounty will be paid out in three milestones:

Milestone 0: Provide a rough demo of what the expected UI would look like for the bridging UI (upfront $2,000),

Milestone 1: Build out the full front end and showcasing a finalized design ($4,000),

Milestone 2: Integrate the finalized frontend into FundMovr ($4,000).

If there are any builders out there interested in taking the bounty, apply for the grant through the form here!

Bounty Details

About FundMovr by Movr Network

December 1, 2021
Perpetual Protocol v2 launches on Ethereum layer-2 solution Optimism

Patents

Further Resources

Title
Author
Link
Type
Date

🚀 Perpetual Protocol (PERP) Is Ready To BLOW!

Web

August 10, 2021

Crypto Research, Data, and Tools

Web

Introducing Palmswap: A decentralized Perpetual Protocol on Binance smart chain

Palmswap

Web

November 15, 2021

News Roundup: OMO Group launches Diamond Protocol; Glife Technologies invests in Indonesia, Malaysia | e27

Anisa Menur A. Maulani

Web

References

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