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What is Perpetual Protocol

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What is Perpetual Protocol (PERP)?

Perpetual Protocol basic info

Name:Perpetual Protocol

Ticker:

PERPBuy now

Introduction:

What Is Perpetual Protocol?

Perpetual Protocol is a decentralized exchange (DEX) launched in 2018 by Yenwen Feng and Shao-Kang Lee. It initially had the name "Strike" before rebranding to Perpetual Protocol. This platform distinguishes itself by enabling users to engage in leverage trading, short positions, and low slippage. Its foundation on the Ethereum blockchain and utilization of smart contracts for automated market makers (AMMs) positions it as a significant player in the DeFi space.

The protocol operates uniquely by employing a virtual Automated Market Maker (vAMM) system. Unlike traditional AMMs where assets are pooled, the vAMM facilitates price discovery without requiring actual asset storage, thus creating a virtual environment for trading. This innovation not only enhances the efficiency of the trading process but also aligns with the decentralized ethos of blockchain technology. Perpetual Protocol's commitment to decentralization is further evidenced by its transition towards a decentralized autonomous organization (DAO), empowering PERP token holders in governance decisions.

Resources

Official Website: https://perp.com/

How Does Perpetual Protocol Work?

Perpetual Protocol's operation hinges on two primary components: the virtual Automated Market Maker (vAMM) and an insurance fund. The vAMM, a novel variant in the AMM landscape, is designed for price discovery rather than spot exchange. It leverages mathematical functions to determine token prices, thereby eliminating the need for a traditional liquidity pool. This system is pivotal in maintaining the protocol's decentralized and efficient trading mechanism.

The protocol's structure includes a clearinghouse and a collateralization vault. The clearinghouse plays a crucial role in managing deposits from traders, recording margin amounts, and determining leverage. These deposits are then transferred to the collateralization vault, which safeguards trading positions and communicates with the vAMM for price updates. This dual-structured approach ensures a robust and secure trading environment.

Insurance funds are another critical aspect of Perpetual Protocol. They act as a safety net, protecting traders against unforeseen events or liquidations. Funded by a portion of transaction fees, these insurance funds grow with the network's usage. In scenarios where the insurance funds deplete, a smart contract mechanism kicks in to mint new PERP tokens, which are then sold for collateral, safeguarding the system's solvency.

What Is PERP Token?

PERP is the native token of Perpetual Protocol and plays a central role in its ecosystem. It has a total supply of 150,000,000 tokens. PERP is integral to the platform's governance, with plans for PERP holders to eventually assume full governance responsibilities. The token also offers staking opportunities, where stakers are rewarded with a share of the trading fees and newly minted tokens. This mechanism not only incentivizes participation but also aligns stakeholder interests with the network's growth and stability.

What Determines Perpetual Protocol’s Price?

The price of Perpetual Protocol (PERP), like many assets in the dynamic cryptocurrency market, is influenced by a confluence of factors, pivotal among them being market demand and supply dynamics. As a decentralized finance (DeFi) platform offering trading solutions, Perpetual Protocol attracts investors and traders looking for advanced leverage and trading options in the blockchain space. The level of adoption and usage of the platform directly impacts the demand for PERP tokens. When more traders utilize the platform for its leverage trading capabilities, the demand for PERP increases, potentially driving up its price. Additionally, the unique feature of no impermanent loss and up to 20x leverage on capital in a decentralized setting makes it an attractive option for DeFi enthusiasts, further influencing its market demand.

Another critical factor in determining PERP's price is the broader cryptocurrency market sentiment and trends. As with many digital assets, PERP's price is often correlated with the overall health of the crypto market, particularly the performance of major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Bullish trends in these leading cryptocurrencies can create a positive ripple effect, boosting investor confidence in altcoins like PERP. Moreover, the platform's technical developments, governance decisions by PERP token holders, and updates to its decentralized exchange (DEX) infrastructure can significantly impact investor perception and, consequently, the token's price. In the rapidly evolving blockchain ecosystem, regulatory news and global economic factors also play a role, as they can affect investor sentiment and the attractiveness of crypto assets as investment vehicles.

For those interested in investing or trading Perpetual Protocol, one might wonder: Where to buy PERP? You can purchase PERP on leading exchanges, such as Bitget, which offers a secure and user-friendly platform for cryptocurrency enthusiasts.

Current price:

$0.8296More price details

All-time high:$24.84

All-time low:$0.3145

PERP supply and tokenomics

Circulating supply:66,002,156 PERP

Total supply:150,000,000 PERP

Max supply:0 PERP

Market cap:$54.76M

Fully diluted market cap:$124.45M

Token allocation:

Ecosystem & Rewards

54.79%

Team & Advisors

21.00%

Strategic Investors

15.00%

Balancer LBP

5.00%

Seed Investors

4.20%

Tokenomics:

Uniqueness

The goal of Perpetual Protocol is to create a perpetual contracts trading platform that anyone can use. To do that, users need to be able to trade with good liquidity and low slippage. Perpetual Protocol solves this by employing its vAMM solution. Perpetual Protocol doesn’t follow the usual order book model of centralized exchanges. Instead, traders trade against a virtual automated market maker, whose initial liquidity is set by the operator.

For instance, assume the operator sets the vAMM’s liquidity at 100 vETH to 40,000 vDAI. Someone depositing DAI to go long on ETH would tilt the price of ETH upwards and create an incentive to go short on vETH if the price is out of line with market prices. Traders going short on vETH would also deposit DAI as collateral and bring the price of vETH back to its equilibrium. Having liquidity swaps is unnecessary, as the vAMM functions as a tally of all trades and automatically finds an equilibrium in the long run. In practice, trades on Perpetual Protocol are all settled in USDC.

By using this vAMM model and building the exchange on xDai, traders are able to enjoy on-chain trading without fees and instant settlement. Furthermore, Perpetual Protocol supports gas-free deposits over 500 USDC, meaning traders are able to deposit with 0 ETH in their wallets.

Token utility

Governance $PERP tokens can be used to vote or propose new ideas to improve the protocol. Currently, critical decisions are made by the core developers to keep governance nimble in the early days of the protocol. The team has created a detailed plan to transition governance to the community as the protocol matures. Staking Token holders can lock up their $PERP for a fixed amount of time in the Staking Pool. Stakers get rewarded through staking rewards and are eligible to claim a portion of the transaction fees generated during the epoch proportional to the number of tokens staked. PERP stakers should be aware of 5 things when staking their tokens:

Stakers must stake their tokens for a fixed amount of time. During this time, known as “epoch”, stakers are not allowed to withdraw their tokens. Each epoch lasts 7 days.
A transaction needs to be submitted if a staker wishes to withdraw their staked tokens.
Staking rewards are time-weighted, meaning stakers are free to stake their tokens anytime during the epoch but will only receive a portion of the stake incentives.
Transaction fees can be claimed right after the epoch, but the staking rewards are locked until the first day of the same month in the following year.
If a staker doesn’t unstake their tokens at the end of the epoch, the tokens will automatically roll over to the following epoch.

Links

Website:https://perp.com

X:https://twitter.com/perpprotocol

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What is the development prospect and future value of PERP?

The market value of PERP currently stands at $54.76M, and its market ranking is #627. The value of PERP is not widely recognized by the market. When the bull market comes, the market value of PERP may have great growth potential.

As a new type of currency with innovative technology and unique use cases, PERP has broad market potential and significant room for development. The distinctiveness and appeal of PERP may attract the interest of specific groups, thereby driving up its market value.

What will the price of PERP be in 2025?

Based on PERP's historical price performance prediction model, the price of PERP is projected to reach $1.23 in 2025.

What will the price of PERP be in 2030?

In 2030, the PERP price is expected to change by +2.00%. By the end of 2030, the PERP price is projected to reach $2.26, with a cumulative ROI of +134.33%.

Reminder: Just like all cryptocurrency investments, investors must closely monitor the market performance of PERP and be aware of the associated risks. The world of cryptocurrencies is full of uncertainties, so thorough research and preparation are essential.

PERP price PERP price prediction PERP news

Is PERP worth investing or holding? How to buy PERP from a crypto exchange?

If you want to buy PERP, the following information may be helpful for your investment decisions:

In the last 7 days, the price of PERP has fallen by -26.13%, leading to negative returns for most PERP investors. The market is currently pessimistic about the price trend of PERP.

It is important to note that the current price of PERP has retreated by -96.66% from its all-time high. This coin is currently considered high-risk, and while its price may rebound in the future, there is significant uncertainty.

Additionally, it's important to understand that each coin has its own optimal times for buying and selling. The optimal time to invest is dynamic: when a coin is undervalued, it's wise to adopt a buying strategy; when it becomes overvalued, you should decisively sell the coin.

To decide whether PERP is worth investing in, you need to consider various market factors such as the overall trend of the cryptocurrency market, the project's fundamentals, its current market valuation, and whether the current price is suitable for buying. If the project's fundamentals suddenly change or the price becomes excessively high, you should adjust your investment strategy and trading operations accordingly.

Your investment decisions should be based on your own risk tolerance, financial status, market analysis and research, especially the timing of your investments. Correct timing can ensure more reliable returns. Keep in mind that investing in PERP or any cryptocurrency comes with certain risks and uncertainties.

Regardless of your outlook on the development prospects and future trends of PERP, if you want to buy or sell PERP, you can consider Bitget for your trading needs. The best place to buy PERP is an exchange that offers hassle-free and secure transactions, combined with a user-friendly interface and high liquidity. Every day, millions of users choose Bitget as their trusted platform for crypto purchases.

Investing in Perpetual Protocol has never been easier. Simply sign up on Bitget, complete the identity verification process, and make payments using bank transfers, debit cards, or credit cards, all while ensuring security through crypto wallets. This is a widely adopted method to buy Perpetual Protocol. Here's a step-by-step guide on how to buy Perpetual Protocol on Bitget.

Buy PERP now Coin buying guide

How to get Perpetual Protocol through other methods？

Using cash to buy Perpetual Protocol is not the only way to obtain Perpetual Protocol. If you have the time to spare, you can get Perpetual Protocol for free.

Learn how to earn Perpetual Protocol for free through the Learn2Earn promotion.

Earn free Perpetual Protocol by inviting friends to join Bitget's Assist2Earn promotion.

Receive free Perpetual Protocol airdrops by joining ongoing challenges and promotions.

All crypto airdrops and rewards can be converted to Perpetual Protocol through Bitget Convert, Bitget Swap, or spot trading.

What is Perpetual Protocol used for and how to use Perpetual Protocol?

The use case of Perpetual Protocol may expand as the crypto market and the project itself develop. Currently, you can use PERP to achieve the following goals:

Arbitrage by trading PERP: Since PERP is a frequently traded cryptocurrency, the price of PERP is always fluctuating. Earn more PERP by buying low and selling high on the exchange. Bitget spot market provides a variety of PERP trading pairs to fully meet your needs.

Earn by staking PERP: You can also generate income through financial management methods such as staking PERP or lending PERP. Bitget Earn offers a variety of financial products designed to help you earn more income from your PERP.

Send or pay PERP: If you want to give PERP to your friends, a charity, or a fundraiser, or you want to pay someone with PERP, you can quickly and easily send PERP to the recipient through their payment address.

You can also go to the official website of the Perpetual Protocol project to learn more about the use cases of PERP. For example, find out if the project supports the use of within its community or ecology, or if the project allows you to purchase physical or virtual products in .

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