【Term explained】How do on-chain perpetual contracts work?
On a perpetual DEX, users can trade perpetual contracts by connecting their wallet, with margin and profits and losses settled by smart contracts on-chain.
In a pool-based model, liquidity providers are the counterparties to traders: when traders are profitable overall, the pool loses; when traders lose overall, the pool profits.
$HYPE is Hyperliquid's native token. Hyperliquid is known for perpetual contract trading.
Be skeptical of claims promising high returns.
On a perpetual DEX, users can trade perpetual contracts by connecting their wallet, with margin and profits and losses settled by smart contracts on-chain.
In a pool-based model, liquidity providers are the counterparties to traders: when traders are profitable overall, the pool loses; when traders lose overall, the pool profits.
$HYPE is Hyperliquid's native token. Hyperliquid is known for perpetual contract trading.
Be skeptical of claims promising high returns.