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@perpprotocol is a newer decentralized derivatives protocol that's focused is on bringing perpetual swaps and other derivatives to crypto's decentralized markets
Learn more
@perpprotocol is a newer decentralized derivatives protocol that's focused is on bringing perpetual swaps and other derivatives to crypto's decentralized markets
Learn more
$PERP uses a vAMM (virtual automated market maker)
you may be familiar with a regular AMM DEXs like @UniswapProtocol or @SushiSwap for trading
But the typical AMM model has a few downsides that $PERP has addressed
you may be familiar with a regular AMM DEXs like @UniswapProtocol or @SushiSwap for trading
But the typical AMM model has a few downsides that $PERP has addressed
The AMM model exposes liquidity providers to impermanent loss. AMM's are also limited in their capacity as they cannot offer leverage or short positions.
$PERP's vAMM does not use liquidity pools
$PERP's vAMM does not use liquidity pools
it instead pools collateral stored inside smart contracts. While the vAMM uses the same x*y=k constant product formula, there is no real asset stored in the pool itself (k)
Instead, the real asset is stored in a smart contract vault that manages all collateral backing the vAMM.
Previous models for decentralized crypto derivatives have the issue of counter-party risk and high IM. Not a very enticing deal for many potential liquidity providers
Previous models for decentralized crypto derivatives have the issue of counter-party risk and high IM. Not a very enticing deal for many potential liquidity providers
$PERP also utilizes the xDai chain so fees on the protocol are negligible and block times are fast. No more complaining about high gas fees or chain congestion.
But wait, there's more
But wait, there's more
@perpprotocol is launching staking services in February. This will allow anyone to stake $PERP and earn a high yield because of $PERP's inflationary token emission schedule. This will help bootstrap volume and the network as a whole
When you stake $PERP you will earn 50% of the trading fees generated on the platform from derivative trading. Stakers will be receiving direct cashflow in the form of $USDC from the protocols products. Direct cashflow. In dollars.
I expect these staking rewards will successfully bootstrap a grassroots community. As more $PERP rewards are given out to the community, $PERP awareness rises, as awareness rises, more people will be introduced to the product, as more people use the product....
more fees are generated for stakers. As more fees are generated for stakers, the staking yield increases, and as yield increases, there will be more investment in $PERP (number go up)
$PERP has a very powerful cyclical flywheel that once set in motion will be $
$PERP has a very powerful cyclical flywheel that once set in motion will be $
So the vAMM model solves on-chain liquidity for perpetual contracts. xDai significantly reduces transaction time & cost. Add great tokenomics and you have a very bullish equation
& this is just the tip of the iceberg. There's room for more products, derivatives, markets, L2, etc
& this is just the tip of the iceberg. There's room for more products, derivatives, markets, L2, etc
