. What is Perpetual Protocol (PERP)? Here is the Crypto Currency PERP Coin in All Details – In this article, What is Perpetual Protocol (PERP)? We will answer the question and try to present details about the project.
Perpetual Protocol (PERP) Nedir?
The Perpetual Protocol is a perpetual decentralized contract protocol for each asset made possible by the Virtual Automated Market Maker (hereinafter referred to as “vAMM” or “vAMM”).
For those unfamiliar with perpetual contracts: A perpetual contract is a derivative similar to a futures contract but without an expiry date.
Like Uniswap, traders can trade directly with our Virtual AMMs without the need for counterparties. Virtual AMMs provide guaranteed on-chain liquidity with predictable pricing determined by fixed product curves. Virtual AMMs are also designed to be market independent and fully secured
Perpetual Protocol key features:
20x Leverage Continuous Contact on the Chain
Traders can trade with up to 20x long or short leverage, with transparent fees and 24/7 guaranteed liquidity.
Guaranteed Liquidity Provided by Our VAMM
Each asset can be supported by a permanent contract on the Perpetual Protocol. Whether gold, fiat, BTC, BCH, ETH, ERC-20s, XRP, EOS, LTC, ZEC, XMR and more – Continuous Protocol can support them all. All that the Continuous Protocol requires is a price feed for the underlying asset from an oracle.
Zero Permanent Loss from Underlying Price Fluctuation
Unlike popular DeFi protocols that use AMMs such as Uniswap and Balancer, stakes in Perpetual Protocol do not suffer from permanent losses caused by price fluctuations.
With these advantages, we are confident that Continuous Protocol can bring more financial instruments to the DeFi ecosystem and become a vital part of Ethereum currency legions!
Introduction to Virtual Automated Market Maker (vAMM)
Before the Perpetual Protocol, most AMMs focused on token swaps rather than derivatives trading like perpetual contracts.
To enable continuous contract trading on the chain, the Perpetual Protocol offers a new approach called the Virtual Automated Market Maker (vAMM). The Continuous Protocol’s vAMM uses the same constant product formula x * y = k as Uniswap.
As the “virtual” part of VAMM implies, there is no real asset pool (k) stored in vAMM. Instead, the real assets are stored in a smart contract vault that manages all collateral that supports vAMM. Perpetual Protocol uses a vAMM as a price discovery mechanism rather than a direct liquidity pool for spot trading like Uniswap, Balancer or Curve.
PERP Token Tools
The PERP token is the Perpetual Protocol’s ERC-20 native token, strengthening the entire system in two ways (staking and governance).
Stake etme
PERP holders can lock or “stake” their PERP in the Staking Pool for a fixed period of time. In return, stakes are rewarded with (1) staking rewards in PERP and (2) staking incentives that include 50% of the network trading fees in USDT (the remaining 50% of the trading fee goes to the Insurance Fund). .
Administration
After PERP holders have staked their tokens, they can use their staked PERPs to vote or suggest new ideas that can be used to improve the protocol. One point to note is that before the large distribution of the PERP token, the core protocol participants will be the critical decision makers. This is deliberate, as we thought it was important to keep governance agile in the early days of the protocol.
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