What is Perpetual Protocol?
Perpetual Protocol is a decentralized exchange that operates on-chain, enabling users to trade perpetual futures on various crypto assets.
Background
Formerly known as Strike, Perpetual Protocol began development in 2019. The version 2 of the protocol was launched on Optimism in 2021. Its native utility and governance token, PERP, recently underwent a tokenomics change with the introduction of veTokenomics.
How It Works
Users on Perpetual Protocol can take long and short positions on assets, provide liquidity and stake, and place different types of orders. They can also earn a yield on their capital by acting as market makers. The protocol employs a virtually automated market maker (vAMM) for the price discovery of assets.
Key Takeaways
- Perpetual Protocol is an on-chain decentralized exchange that allows users to trade perpetual futures on various crypto assets.
- The protocol offers features like long and short positions, providing liquidity, staking, and the ability to place different types of orders.
- Users can earn a yield on their capital by providing liquidity, i.e., market making.
- The protocol uses a virtually automated market maker (vAMM) for the price discovery of assets.
- PERP, the native utility and governance token of the Perpetual Protocol, recently underwent a tokenomics change with the introduction of veTokenomics.
