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Perpetual Protocol in Crypto
LearnNewbie
May 20, 2022

Perpetual Protocol in Crypto

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What is Perpetual Protocol (PERP)?

The Perpetual Protocol is a decentralized perpetual contract protocol for a variety of crypto-assets. It is implemented by the Virtual Automatic Market Maker.

Similar to Uniswap, traders can directly transact with the Perpetual Protocol VAMM without going through a third-party intermediary. The VAMM can also provide on-chain liquidity, guaranteed pricing, and predictability through system plots. Not only that, VAMM is also designed to be market-neutral as well as fully mortgaged.

Outstanding Features

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VAMM stands for Virtual AMM

Unlike applications that use automated market makers (AMMs) for both token swaps and price considerations, such as Uniswap or Balancer, Perpetual Protocol uses a constant curve in AMM for short selling and lever handling.

In addition, VAMM offers a number of advantages, such as: liquidity is always maintained, prices are predictable, and contracts are fully collateralized. What’s more, the combination of these features has the potential to eliminate the risk of impermanent loss that investors will incur when using AMMs.

High leverage

This is probably one of the outstanding points of Perpetual Protocol when this project allows traders to make trades with up to 10X leverage. This number will help traders get more profits and stimulate investment.

Free gas and a quick transaction

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Perpetual Protocol uses xDai scaling technology to increase transaction speeds compared to other exchanges on the Ethereum platform. Traders can quickly connect to a Metamask or Perpetual Protocol wallet and then initiate a transaction in less than a minute. In addition, investors can withdraw funds in a split second, even if the protocol’s service is having problems. Besides, the project also frees gas for all transactions, helping investors save a lot.

Permanent contract

Perpetual contracts assist traders in predicting the future price of an electronic asset by opening a long or short position. Unlike regular smart contracts, perpetual contracts have no expiration date and remain in effect until the trader actively closes their position.

PERP Token

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Information about PERP Token

Token name: Perpetual Protocol

Ticker: PERP

Blockchain: Ethereum

Standard: ERC-20

Address: 0xbc396689893d065f41bc2c6ecbee5e0085233447

Token type: Governance

150,000,000 VND total supply

Token allocation

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With the above total supply, PERP tokens will be allocated to the following sources:

  • The ecosystem and rewards accounted for 54.8% of the total.
  • Seed round investors accounted for 4.2%.
  • Balancer LBP accounted for 5.0%.
  • Strategic investors account for 15%.
  • Team and Mentor account for 21% of the total.

Token use cases

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PERP tokens are used for three main purposes: governance, staking, and exchange backstop.

Project management

Users who own PERP tokens have the right to vote on project plans. The more tokens you have, the greater the weight of your opinion. Vote for/against or propose new ideas that can be used to improve the Perpetual Protocol.

Staking

Users can lock or stake their PERP tokens for a fixed amount of time in the staking pool to receive rewards. This purpose is similar to almost all other coins on the crypto market today.

Exchange backstop

If the unexpected happens, the exchange insurance fund can be depleted. In this case, PERP tokens can be sold to the market to cover any shortfall.

Where can I store and buy PERP tokens?

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People can store PERP tokens in some popular wallets such as Trust Wallet, MetaMask, MyEtherWallet, etc. or in the wallets of the exchanges below.

Currently, people can trade PERP tokens on a number of electronic exchanges such as: Binance, Kraken, MEXC, Gate, Kucoin,…

Project Team

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Perpetual Protocol is backed by famous backers and positions in the crypto world such as: Binance Labs, CMS, Multicoin Capital, Alameda Research, etc.

See ya in the next article !

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