What is Perpetual Protocol? Everything you need to know about PERP (2024)

Perpetual Protocol facts

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What is Perpetual Protocol?

Perpetual Protocol is a decentralized crypto derivatives exchange built on the Ethereum blockchain. The platform allows users to trade various types of derivatives, such as perpetual swaps and futures, with high leverage and minimal liquidity issues. Perpetual Protocol is designed to provide a secure and efficient way to trade derivatives while harnessing the decentralization, transparency, and autonomy of blockchain technology. The native token of the Perpetual Protocol ecosystem is the PERP token.

How does Perpetual Protocol work?

Perpetual Protocol is a decentralized crypto exchange on the Ethereum blockchain. The platform was designed to enable trading in perpetual futures contracts. These contracts are intended to track the price of a particular asset, but unlike traditional futures contracts, they have no expiration date. Instead, they are settled and updated daily.

Users can go long or short on a variety of assets, including cryptocurrencies, stocks, and commodities, with leverage. The protocol uses an automated market maker (AMM) to provide the necessary liquidity and is maintained by curators and developers.

The PERP token is the governance token of the protocol, allowing holders to have a say in important decisions such as transaction fee rates and the addition of new assets.

The PERP token

The PERP token is the native cryptocurrency on the Perpetual Protocol network. It is used as gas for transactions on the protocol and also serves as a means of deposit and withdrawal on the trading market. PERP is earned by liquidity providers as compensation for providing funds. Additionally, PERP is used to determine interest rates for trading perpetual contracts on the protocol's market.

There is a limited supply of 150 million PERP tokens, with the majority currently in circulation. The protocol has a system of incentive mechanisms designed to stimulate demand for PERP and promote its value. This includes the repurchasing and burning of PERP tokens, reducing the total supply of the token. The goal is to support the value of PERP and stimulate economic activity on the protocol.

The Technology Behind PERP

The technology behind PERP consists of a DeFi protocol built on Ethereum. It allows users to trade perpetual futures using an automated market maker system. It uses its own PERP token as a governance token and as a way to pay and earn fees within the protocol.

The protocol offers low latency and high transaction speeds, with transactions executed instantly and at minimal costs. Automated market makers enable this by providing liquidity to traders. The protocol uses a virtual balance pool to limit the impact of price fluctuations, reducing risks for traders.

Perpetual Protocol consists of various smart contracts, including the perpetual contracts themselves, the automated market makers, and the virtual balance pool. The PERP token is integrated into the protocol, used for managing the balance pool and paying fees within the protocol.

The Perpetual Protocol ecosystem

The Perpetual Protocol ecosystem allows users to trade futures contracts and earn liquidity with their crypto assets. The Perpetual Protocol ecosystem consists of various components and parties, including:

• The Perpetual Exchange: The decentralized exchange where users can buy and sell futures contracts. The exchange uses an automated market maker algorithm to provide liquidity and execute trades.
• Pools: There are various pools (funds) in the Perpetual Protocol ecosystem, each with different assets and risk profiles. Users deposit their crypto assets into these pools and then earn returns as liquidity providers.
• PERP token: The native cryptocurrency of the ecosystem. It serves as the fuel for transactions on the exchange and as a reward for liquidity providers.
• Community: Perpetual Protocol has an active community of users and developers committed to the development of the protocol. The team regularly communicates with the community and values feedback to improve the protocol.

Benefits of Perpetual Protocol

What advantages of Perpetual Protocol make the coin attractive to investors?

• There is an insurance fund available.
• Good liquidity.
• Price fluctuations do not affect staked coins.
• Leverage options.
• Unique market maker mechanism.

Drawbacks of Perpetual Protocol

What drawbacks of Perpetual Protocol should investors consider?

• The platform has experienced short crashes in the past.
• Small market share and user base.
• Complex trading mechanisms.

Who is the founder of Perpetual Protocol?

The founders of Perpetual Protocol are Yenwen Feng and Shao-Kang, originating from Taiwan. The project was initiated in 2018 under its former name 'Strike' and later launched its mainnet in December 2020 under its new alias.

Price forecasts

In 2026 experts expect a minimal price of €1.75 and a minimal price of €5.77 in 2031.

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Market information

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PERP Return On Investment

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Historical Origin Protocol price

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A video explanation of Perpetual Protocol

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