Perpetual Pools are a feature utilizing AMMs launched by Tracer (now Mycelium). They form the derivative structure for leveraged tokens, facilitating the transfer of value between the long and short sides of the pool. The value transfer is determined by a transfer function known as Power Leverage, which can obtain its input from any price or data feed. The Power Leverage function acts as a rebalancing mechanism, not too dissimilar from how a funding rate is used in perpetual swaps. Leveraged Tokens become the ERC-20 representation of perpetual pool ownership. The pools ensure that the long (L-token) and short (S-token) leverage tokens are fully collateralized and non-liquidatable. The perpetual pool design is immune to slippage, transaction costs, and removes the need for funding. This is possible because no underlying asset is purchased or sold, the pool simply shifts the imbalance between longs and shorts and facilitates the minting of leverage tokens.