About Perpetual Protocol (PERP)
Perpetual Protocol is a decentralized exchange that allows users to trade short positions with leverage and low slippage, as per their website. The protocol was named Strike when it first launched in 2018, before its rebranding in 2020.
The platform runs on Ethereum and utilizes smart contract capabilities, enabling the Automated Market Maker (AMM) system that powers trade on the Perpetual Protocol platform. This in turn allows the DEX to operate without the involvement of any governing institution to oversee the movement of funds.
Perpetual Protocol’s AMM system differs slightly from standard AMMs as the platform doesn’t facilitate spot trading. For this reason, it uses a Virtual Automated Market Maker (vAMM) system that spots prices to accurately forecast instead of executing trades on the spot. Actual crypto assets are not available for trading, unlike traditional AMM-based protocols enabling spot trading.
Perpetual Protocol’s network cryptocurrency, PERP, can reward holders in several ways and plays a crucial role in maintaining the network and extending the ecosystem. PERP will reportedly be used in governance when it is handed over from the core developer team to the community in future.
Staking 2.0 allows PERP token holders to earn a yield from the fee revenue generated by traders, with a locking contract locking up a portion of the token supply and increasing demand. Staking also determines referral rewards and boosts governance voting power.
In November 2022, Perpetual Protocol partnered with Dappos to integrate its Web3 operating protocol with their decentralized exchange (DEX), increasing accessibility for investors. This collaboration aims to reduce entry barriers to Perpetual's futures trading, potentially boosting the trade community's growth and volume. By transforming decentralized applications (DApps) to emulate the user-friendly nature of mobile apps, Dappos aims to overcome usual hurdles like Web3 wallet setup, gas token purchases, and token bridging across blockchains.
The current version of PERP staking is available on Optimism's Layer 2, where token holders can earn a share of the fees generated in USDC and locked PERP from token emissions every week. The price of PERP is updated and available in real time on Binance.