Perpetual Protocol Coin Price & Market Data
Perpetual Protocol price today is $5.15 with a 24-hour trading volume of $39,488,659. PERP price is up 8.2% in the last 24 hours. It has a circulating supply of 27 Million PERP coins and a max supply of 150 Million. If you are looking to buy or sell Perpetual Protocol, Binance is currently the most active exchange.
What is Perpetual Protocol?
Perpetual Protocol is a decentralized protocol that offers perpetual contract trading on every asset. Users can choose to open long or short positions on a variety of asset classes such as cryptocurrencies, commodities, and fiat currencies with up to 10x leverage.
What is the PERP token?
The PERP token is the platform’s governance token which can be used for several different functions such as:
Governance - Token holders can vote on the direction of the protocol’s future by modifying key features or further expanding utility for the platform’s native token. Voting power is determined by the user’s total holdings.
Staking - PERP tokens can be staked for a 7-day epoch to earn even more PERP and USDC from the protocol’s transaction fees. Funds cannot be withdrawn until the epoch has ended. USDC rewards are immediately claimable while PERP rewards are locked for up to half a year.
How does Perpetual Protocol work?
To create a decentralized platform for opening leveraged positions, Perpetual Protocol relies on virtual automated market makers, or vAMMs. Functioning in a similar fashion as the Uniswap and Balancer’s AMMs, traders can execute transactions directly through the vAMMs without the need for counterparties.
The main difference, however, lies in the ’virtual’ part. In conventional AMMs, assets are stored within the smart contract and the exchange price for each asset is dictated through a specific mathematical function such as constant product or constant sum curves. On the other hand, vAMMs in Perpetual Protocol do not store any asset whatsoever. Instead, the real assets are stored in a smart contract vault, which manages the collateral backing the vAMM, which is denominated in USDC. Each perpetual contract will have their own specific vAMM, but all of them are protected under the protocol’s insurance fund.
Perpetual Protocol is able to offer increased trading speed and zero gas trades with the use of the xDai chain. With the innovation of vAMM, users will have access to high liquidity and low slippage for their trading needs.
As with all forms of perpetual contract trading, funding rates and liquidation ratios are a key aspect of Perpetual Protocol. Funding rates are settled on an hourly basis while liquidation ratios are set at 6.25% of your posted margin. This means that traders with effective leverage of 16x will face the risk of their positions being liquidated by keeper bots. Keeper bots will earn 20% of the liquidated margin, while the remainder will be sent to the insurance fund.
How do I get PERP tokens?
Previously, PERP protocol has implemented transaction mining, where users were given rebates on trading fees in the form of PERP tokens. Depending on the duration of the open position, users can earn from 17% up to 110% of the transaction fees spent. However, the rewards program has since been discontinued.