What is Perpetual Protocol Token?
After Bitcoin, Ethereum has scaled its reach to new highs every new day. By offering a solid base for DeFi and NFTs, Ethereum has shed light on the different use cases of cryptos. However, the platform has often faced congestion which results in exorbitant fees. Although ETH 2.0 intends to fix this, the time frame remains misty. Here’s a platform that offers cheaper fees and also allows you to leverage your capital by up to 20x.
Perpetual Protocol is a decentralized Finance (DeFi) platform that connects a distributed network of computers and incentivizes them. It is a collection of smart-contracts-driven programs running of Ethereum blockchain aiming to communicate and mirror the services offered in the derivative market. The platform is not built for spot trading but to designed for leverage trading, short positions, and low levels of slippage.
Besides, PERP is the native crypto of Perpetual Protocol which is used in governance and staking. While the progress of the platform is in its early stages as the ultimate goal lies in transferring the power to the PERP holders with developments and improvements.
| Launch Date | 2018 |
| Founder | Yenwen Feng and Shao-Kang Lee |
| Blockchain Protocol | Ethereum Blockchain |
| Native Token | PERP |
| Market Cap | $61.85 million |
| Token Type | ERC-20, Native & Governance |
| Circulating Supply | 66,002,157 |
| Total Supply | 150,000,000 |
| Consensus Method | Proof-of-Stake (PoS) |
Who Are the Founders of Perpetual Protocol?
The perpetual protocol was founded by two Taiwanese entrepreneurs, Yenfen Weng, and Shao-Kang Lee. Before this, both had launched payroll and accounting companies for crypto startups. The project started in 2018 as ‘Strike’ and later launched its mainnet in December 2020 with a new brand. The platform is backed by highly reputed investors like Zee Prime Capital, Multiarrows Capital, CMS Holdings & Binance Labs.
The platform raised nearly $10.65 million by exchanging nearly 25% of the total supply of 150 million. The founding team and its advisors retained nearly 21% of the supply which comes to around 36 million tokens in the token’s creation event.
How Does Perpetual Protocol Work?
Perpetual Protocol aims to offer a platform similar to the spot trade platforms, where-in the buying and selling of the tokens are carried out with ease. It does so by using two mechanisms Virtual Automated Maker (VMM) and Insurance Fund.
Virtual Automated Market Maker (vAMM)
In traditional AMM’s, the traders deposit their cryptos into the liquidity pools representing certain trading pairs. Further, users trading against these assets have to pay fees which are distributed among all liquidity providers based on their contribution. Here, in vAMM, there are no real cryptos stored as the platform is designed only for price discovery but not for spot exchange. Hence called Virtual Automated Market Maker and it uses the functions used for other projects like Uniswap to determine prices.
It consists of ‘Clearing House’ and ‘Collateralization Vault’ which are nothing but smart contracts that enable leverage on both long and short trades. As the traders make a deposit, the clearing house accepts it and determines the nature of the trade. Further, it deposits to the Collaterization vault which helps the platform to backstop & secure trading positions and notifies the AMM to update prices.
Insurance Fund
The derivative space is filled with uncertainty and hence unexpected losses may be a part of it. Hence the insurance fund is the first line of defense if these losses occur either losses in the liquidation process or inability to fund the trader’s liquidation process. The protocol’s 50% of the transaction fees are deposited and the insurance fund is raised using these fees. In the worst event of the Insurance Fund being depleted, a smart contract is triggered which mints new PERP and sells them for collateral.
What Makes Perpetual Protocol Unique-Uses Cases?
- High Leverage: The platform offers high leverage of up to 20x with no hidden fees
- Not Lacked Liquidity: As the platform has not fell short of liquidity as of now which is claimed to remain unchanged in the future. One can also leverage fiat or gold for popular tokens like BTC, BCH, etc
- Reduced Loss: DeFi-staking carries high chances of loss due to high volatility. Here in Perpetual protocol, these price variations do not impact the stakers.
- High Security: The platform is open source and highly secure. The platform has undergone multiple external audits from well-known firms like ConsenSys & Packsheid and has received recommendations from them. Moreover, the insurance fund backs the protocol in times of crisis.
Perpetual Protocol(New) Price Analysis
Source: Tradingview
- The PERP price is trading within an ascending broadening wedge which is largely considered as bearish as the price deviates towards south after reaching upper resistance
- The price just flipped the lower support and is rising. Although RSI is surging the Bollinger Band suggests a minor pullback could be imminent
- Therefore, after the price reaches the upper bands of the Bollinger band, it may retrace a little that may induce a catapult action to propel high
- However, the trading volume has depleted finely and hence the rally may move ahead at a lower pace.
| Perpetual Protocol Price Today | $0.9636 |
| Price Change <Yearly> | -79.4% |
| Market Dominance | 0.01% |
| Market Rank (as per CMC) | 379 |
| Market Cap | $63.71 million |
| Fully Diluted Market Cap | $139.99 million |
| ATH | $24.84 |
| ATL | $0.3145 |
How to Buy Perpetual Protocol in India?
If you are planning to buy Perpetual Protocol? Just follow the below-mentioned steps,
- Download CoinDCX App on your smartphone
- Enter the details required for registration
- Complete KYC
- Once your profile is verified, fund your wallet and buy ‘PERP’ token
