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Investing In Perpetual Protocol (PERP) – Everything You Need to Know

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Perpetual Protocol (PERP) operates as a decentralized derivatives exchange. The network enables traders to gain access to a large selection of derivatives including cryptocurrency, gold, and other commodities. The goal of the project is to provide investors exposure to more ROI opportunities across multiple assets.

A perpetual Contract is similar to a normal option in that it’s an agreement to purchase an asset at a later time for a pre-agreed price. However, perpetual contracts have no expiration date which enables traders to gain more earning potential in certain market conditions. Crypto investors have long sought out derivatives exchanges like Perpetual Protocol.

Perpetual Protocol (PERP) - Homepage

Perpetual Protocol (PERP) – Homepage

This demand is evident by the growth the platform has experienced since its launch. Currently, Perpetual Protocol operates as one of the largest derivatives DEXs in terms of daily trading volume. The platform currently provides services for 15+ markets with over 3+ million trades executed.

What Problems Does Perpetual Protocol Fix?

There are a variety of problems that Perpetual Protocol reduces. For one, the network enables investment firms to gain market exposure to cryptocurrencies. In the past, these firms have been unable to participate in the market due to a lack of regulatory framework.

Derivatives allow investors to profit off of market movements without actually holding the asset directly. Perpetual Protocol provides exposure to derivatives ranging from crypto to gold to fiat currencies and more. In the future, the developers intend to enable investors to create and trade derivatives for any asset.

Gate Keepers

Trading derivatives has been traditionally limited to only accredited investors in the past. Accredited investors can show at least $21 million in assets. This requirement left many investors out of the loop. Perpetual Protocol provides a more democratic and open trading experience by removing the gatekeepers from the equation.

Perpetual Protocol (PERP) - Twitter

Perpetual Protocol (PERP) – Twitter

There are no technical requirements to use the Perpetual Protocol. You don’t need to sign up or register. The platform simply requires you to connect your ERC-20 compatible wallet to the network. MetaMask is a popular example of an ERC-20 wallet that the network supports.

Lack of Options

Another major problem faced by DEX traders is a lack of functionality and features. DEXs provide the benefit of non-custodial trading but they have lacked in terms of features. Perpetual Protocol raises the bar in terms of options. The platform enables traders to open long or short positions and trade with up to 10x leverage.

Benefits of Perpetual Protocol (PERP)

There’s a number of benefits that Perpetual Protocol brings to the table. The network operates as a decentralized perpetual contract platform that is flexible enough to represent every asset. Anyone can buy and sell these assets using the network’s vAMM protocol in a secure manner.

Secure

Perpetual Protocol’s developers took great care to ensure the platform was secure and free of coding errors. For example, the network is open source so anyone can check the platform’s processes to ensure there is no funny business. Additionally, the platform has undergone multiple third-party audits by two of the most respected firms in the market – Consensys, and Peckshield. Also, the firm secured insurance coverage provided by Unslashed Finance and Nexus Mutual

Low Fees

Another main draw for Perpetual Protocol is its low fee structure. The network integrates L2 scaling solutions to provide fast transactions with minimal fees. This feature is a primary concern for investors due to the recent fee hikes experienced in the Ethereum network.

How Does Perpetual Protocol (PERP) Work

Perpetual Protocol is able to provide its services to the market by combining a host of proprietary systems and a multi-use cryptocurrency. The network provides several ways for users to secure passive rewards in addition to its responsive DEX trading options.

Virtual Automated Market Maker

At the core of Perpetual Protocol’s system is the Virtual Automated Market Maker. This system operates like popular AMMs such as Uniswap but adds a variety of features that are unique to the equation. Specifically, the network enables users to trade using leverage and short selling from an AMM-style exchange.

DEX

The network’s DEX provides efficient liquidity provisioning and high transaction throughput. As one of the premier derivatives DEXs in the DeFi market, Perpetual Protocol’s DEX serves a vital role in opening up new opportunities in the market for the average investor.

Stake

Users can stake their PERP tokens to secure passive rewards. Staking is one of the most sought-after features in the DeFi sector because it requires very little research and overhead to secure consistent rewards. In the Perpetual Protocol ecosystem, your staking rewards are based on the number of tokens you lock up.

Liquidity Program

Another cool way to earn profits on the network without trading is by providing liquidity. Perpetual Protocol integrates liquidity pools to help projects secure funding and users earn rewards.  The unique technical structure of the platform enables lenders to receive their repayment on time, even if the borrower repays the loan late. A combination of collateral requirements and liquidity pool profits makes this strategy possible.

Perpetual Protocol (PERP) - Grant

Perpetual Protocol (PERP) – Grant

Perpetual Protocol (PERP) Developer Tools

Developers are encouraged to contribute to the Perpetual Protocol ecosystem. The network provides an excellent selection of developer tools in its guide section. You can find a ton of documentation and other helpful options in this section.

PERP Token

The PERP token is a multipurpose cryptocurrency. The token’s primary role is to operate as a utility token. Users need to hold PERP to interact with the platform’s features. For example, you can stake and provide liquidity using PERP. Notably, the token is ERC-20 compliant. As such, it lives on the Ethereum blockchain.

Community Governance

Perpetual Protocol provides a more democratic DeFi experience via its community governance system. Users can earn more voting rights by holding more PERP tokens. This strategy is popular in the market as it ensures that only those financially invested in the market get a say in its development.

How to Buy Perpetual Protocol (PERP)

Bitstamp – Founded in 2011, Bitstamp is one of the oldest & most trusted exchanges in the world. They currently accept Canada, UK & USA residents excluding the states of Alabama, Hawaii, Idaho, Louisiana, Nevada, & New Jersey.

BinanceBest for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying Perpetual Protocol (PERP). Use Discount Code: EE59L0QP for 10% cashback off all trading fees. 

KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.  This exchange currently accepts International & United States residents.

WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality.  It is the best exchange for residents of India.

Perpetual Protocol (PERP) – A New Type of DEX

Perpetual Protocol provides investors with a lot of benefits that can’t be found on other DEXs. Investors have expressed a desire to gain more features and options. By providing derivatives, leverage, and the ability to short, Perpetual Protocol delivers on its promise to bring new opportunities to the market. For these reasons and more, Perpetual Protocol is well-positioned for future growth.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

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ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

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