Perpetual Protocol (PERP) 101: Empowering Decentralized Futures
Zatrun Published at February 18, 2023

Perpetual Protocol, a decentralized exchange that brings perpetual futures to Ethereum and xDai platforms, has garnered significant attention in the crypto industry. Designed with inspiration from Uniswap and based on an automated market maker (AMM) model, the Perpetual project introduces its native token, PERP Coin. PERP Coin, an ERC-20 token, was developed to encourage decentralized protocol governance and facilitate transactions within the platform.

Perpetual Project and Whitepaper

Perpetual Protocol is on a mission to become the best, most accessible, and secure decentralized derivative trading platform globally. To accomplish this mission, developers have designed a platform that encourages DeFi projects and allows project building on the protocol. Serving as the building block for DeFi currencies, Perpetual Protocol plans to implement expansion to other chains, leverage tokens, and dynamic liquidity in pools.

Founders of PERP Coin: Who Are They and Where Are They From?

Perpetual Protocol was developed by Yenfen Weng and Shao-Kang Lee from Taiwan. The two crypto entrepreneurs initially started the project under the name “Strike Protocol” in 2019, later rebranding it as Perpetual Protocol.

Use Cases of PERP Coin

PERP Coin serves multiple use cases, including:

  1. Earning a share of transaction fees by staking on the platform.
  2. Utilizing it to open leveraged positions up to 10x.
  3. Using it to promote decentralized protocol governance.

What Sets the Perpetual Protocol Apart?

Perpetual Protocol differentiates itself by taking a unique approach to decentralized exchanges (DEXs). Instead of following the conventional order book model, it allows users to trade against a virtual automated market maker (vAMM), where the initial liquidity is known by the operator. The project’s mission is to create a contract trading platform that’s accessible to everyone, emphasizing the importance of maintaining balance over the long term.

Key features that contribute to the uniqueness of Perpetual Protocol include:

  • The virtual automated market maker (vAMM) serves as a flexible account for every trade, ensuring long-term balance.
  • The platform operates on xDai.
  • It supports on-chain trading without the need for transaction fees or instant settlement.
  • Users can deposit up to 500 USDC without requiring gas fees.
  • It is listed on all major exchanges.

Advantages and Disadvantages of PERP Coin

Perpetual Protocol offers several advantages, including:

  1. Increased capital efficiency with leverage options of up to 10x.
  2. High-speed transactions with low fees.
  3. Potential for earning passive income.
  4. Tight spreads between buy and sell orders.
  5. Reliable transactions with validation from multiple nodes.
  6. Listing on major exchanges.
  7. A deflationary maximum supply of 150 million tokens.

However, it’s essential to consider the token’s price volatility, which may present investment risks. Additionally, while offering leverage options, Perpetual Protocol faces competition from other decentralized exchanges (DEXs) that provide higher leverage ratios, such as 25x or 50x. Visit for an in-depth analysis of Perpetual Protocol, where you can explore its potential benefits and considerations for your investment strategy.

Follow the developments in the crypto world. What would you like us to inform you about?