What is Perpetual Protocol (PERP)?

Perpetual Protocol operates as a decentralized exchange (DEX) specifically designed for futures trading on the Ethereum and xDai networks. Traders using the platform have the flexibility to engage in both long and short positions, leveraging up to 10 times the value of various assets, including but not limited to BTC, ETH, DOT, SNX, and YFI. Notably, the trading process is non-custodial, ensuring that traders always maintain control and ownership of their assets, and it takes place on-chain.

The platform employs a virtual automated market maker (vAMM) to provide on-chain liquidity. This vAMM utilizes constant product curves to establish predictable pricing. Perpetual Protocol's vAMMs are designed to be market-neutral and fully collateralized, enhancing their reliability and security.

Perpetual Protocol's overarching vision is to establish the world's premier, most accessible, and secure decentralized derivatives trading platform. Embracing the "DeFi money lego" philosophy, the company not only focuses on its projects but also encourages other projects to build on its platform. As part of its roadmap, the platform has achieved milestones like launching staking pools and implementing limit and stop-orders. Future plans include expanding to additional blockchain networks, introducing leveraged tokens, and launching dynamic liquidity features in its pools.

Who are the founders of Perpetual Protocol?

What makes Perpetual Protocol unique?

Perpetual Protocol distinguishes itself by offering a perpetual contracts trading platform accessible to all users, prioritizing good liquidity and low slippage. Unlike centralized exchanges using the traditional order book model, Perpetual Protocol employs a unique virtual Automated Market Maker (vAMM) solution. In this model, traders engage with a virtual AMM whose initial liquidity is set by the operator, allowing users to trade against it.

The vAMM operates with an equilibrium mechanism. For instance, if a trader deposits DAI to go long on ETH, it tilts the ETH price upwards, creating an incentive for others to go short on vETH. Traders going short also deposit DAI as collateral, bringing the vETH price back to equilibrium. The vAMM eliminates the need for liquidity swaps, tallying all trades and automatically finding an equilibrium over time. In practice, all trades on Perpetual Protocol are settled in USDC.

By implementing the vAMM model and utilizing the xDai network, Perpetual Protocol provides users with on-chain trading without fees and instant settlement. Additionally, the platform supports gas-free deposits for amounts exceeding 500 USDC, enabling traders to deposit without any ETH in their wallets.

Explain the network security of Perpetual Protocol.

Perpetual Protocol has undergone comprehensive audits by Consensys and Peckshield to ensure the security and reliability of its protocol. The platform operates on the xDai network, and its native PERP token adheres to the ERC-20 token standard, residing on the Ethereum blockchain.

Utilizing the ERC-20 standard is a common practice for newly launched tokens on the Ethereum blockchain, which remains a prominent choice for decentralized autonomous organizations (DAOs). Ethereum's security is reinforced by a proof-of-work consensus mechanism, requiring miners to participate in mining activities to generate new Ether. The Ethereum blockchain relies on a network of decentralized nodes to validate transactions, ensuring its overall security.

Perpetual Protocol has integrated Chainlink as an oracle for funding rate calculations. Notably, the platform does not employ an on-chain oracle as a price engine, a strategic decision aimed at preventing the manipulation of underlying asset prices through flash loans, which could be exploited to gain profits within the same transaction. The community-governed protocol further encourages security by implementing a bounty program for developers who identify and report bugs in smart contracts, fostering a collaborative and secure environment.

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