Types of Cryptocurrency

Perpetual Protocol (PERP): Why Should You Invest?

Perpetual Protocol (PERP)

Perpetual Protocol is a decentralized finance protocol built on Ethereum that enables perpetual contracts for any asset class. Perpetual Protocol’s perpetual contracts are similar to traditional futures contracts but do not have an expiry date. This means traders can hold their position for as long as they want without worrying about the contract expiring.

The Protocol is designed to be scalable and efficient, to handle large amounts of trading volume. The perpetual Protocol is also built on Ethereum, which means that it benefits from the security and reliability of the Ethereum network.

What is Perpetual Protocol? 

In late 2019, permanency protocols (PERPs) became known as the Strike Protocol. Perpetually, the Protocol is built around Decentralized Exchanges on Ethereum and Dai. The Perpetual Contract Protocol (PERP) was developed in partnership with Virtual Automated Market Maker (VMAMM).

This Protocol allows for the decentralized and permanent signing of contracts for all assets. Financers have direct control over virtual automation markets without any counterparties. The vAMM provides guaranteed liquidity with predictable pricing based on product curves. Several other features were added to the program to enable the collateralization of transactions and to remain market neutral.

Perpetual Protocol is an on-chain decentralized perpetual contract platform for any asset class to serve as the “building blocks” of Defi. The Protocol is built on Ethereum and allows users to trade perpetual contracts without expiry dates, low fees, and high liquidity.

The key feature differentiating perpetual Protocol from other perpetual contract platforms is that it uses an automated market maker (AMM) mechanism to provide liquidity. The AMM is a decentralized exchange (DEX) type that doesn’t require order books and relies on algorithms to match buyers and sellers. This means there is no need for a traditional exchange to provide liquidity for the perpetual contracts.

The perpetual Protocol also uses a reserve token system to stabilize and reduce risk. The reserve tokens are collateralized with Ethereum and can be used to trade perpetual contracts without worrying about the underlying asset’s price.

The Defi Projects

Since the perpetual Protocol is still in its early stages, there are not many Defi projects built on the Protocol yet. However, there are a few notable projects that are worth mentioning.

  • The first project is UMA: a synthetic token platform that allows users to create and trade synthetic tokens. UMA uses perpetual contracts to provide liquidity for synthetic tokens.
  • The second project is Set Protocol: a platform that allows users to create and trade token sets. Set Protocol also uses perpetual contracts to provide liquidity for the token sets.
  • The third project is MakerDA: a decentralized lending platform that allows users to borrow Dai, a stablecoin pegged to the US dollar. MakerDAO uses perpetual contracts to provide liquidity for Dai.

How Perpetual Protocol Works

Perpetual Protocol is intended to facilitate buying or selling contracts with an identical structure to traditional trading. This happens when creating a version of an Automated Market Maker (AMMS), a technique using a mathematical function to determine the price of an asset and facilitate transferring a single asset into another one. To find out how other protocols use the same method, check Uniswap, Balancer, and Curves.

To trade perpetual contracts on perpetual Protocol, users first need to deposit Ethereum into the smart contract. The deposited Ethereum is then used to buy reserve tokens, collateral for the perpetual contracts.

The perpetual contracts are traded against the reserve tokens, and the price is set by an algorithm that considers the reserve tokens’ supply and demand.

The decentralized perpetual contract protocol allows PERP to be traded with leverage, determined by the amount of collateral in reserve tokens.

If the price of the perpetual contract goes against the trader, they will need to deposit more collateral in the form of reserve tokens to maintain their position. If the price goes in the trader’s favor, they can reduce their collateral.

Benefits of Perpetual Protocol

Perpetual Protocol offers several benefits compared to other perpetual contract platforms.

The first benefit is that it doesn’t require a traditional exchange to provide liquidity. This means that users do not need to trust a centralized entity with their money.

The second benefit is that perpetual Protocol uses reserve tokens to collateralize perpetual contracts. This reduces the risk for traders as they don’t have to worry about the underlying asset’s price.

The third benefit is that Perpetual Protocol is built on Ethereum. This means that it benefits from the security and reliability of the Ethereum network.

Risks of Perpetual Protocol

After understanding Perpetual Protocol’s strengths, let me consider its weaknesses. Flash Crashes: Perpetual Protocol encountered latency issues, and flash crashes in times of extremely high volatility.

Several arbitrageurs have had difficulties taking positions on the opposite edge of big liquidations; some are even unable to control margins. The issue appears resolved as of today as volatility has not affected Protocol.

Despite this fact, there’s still a need for further observation. Low Fee: It’s supposed to be incredibly good. But it’s a big problem. Perpetual Protocol is a new protocol, and as such, it is subject to all the risks associated with new protocols.

  • The first risk is that the Protocol may not be able to handle the large amounts of trading volume.
  • The second risk is that the perpetual contracts may not be liquid enough to allow traders to exit their positions.
  • The third risk is that the price of the perpetual contracts may be volatile and subject to manipulation.
The Team Behind Perpetual Protocol 

Perpetual Protocol was started by two Taiwanese cryptocurrency entrepreneurs who have already started payroll accounting firms for cryptocurrencies. Almost every member of the team has a base in Taipei.

Perpetual Protocol has backing from numerous well-respected investors like Zee Prime Capital, Multiarrows Capital CMS Holding, Binance Labs, and Alameda Research, a strategic partner with the FTSE. Its seed financing will be funded in the next few weeks through Multicoin Capital and will raise 1.6 million.

The team behind the perpetual Protocol comprises experienced professionals with a track record in the blockchain industry.

The team includes:

  • George Cao, co-founder, and CEO. George co-founded Blockfolio, a cryptocurrency portfolio tracker with over 4 million users. He also has experience working as a software engineer at Google and Facebook.
  • David Hoffman, co-founder, and COO. David is the co-founder of RealT, a platform that allows users to buy and sell fractional ownership in real estate. He has also worked as a senior engineer at Google.
  • Paul Fletcher-Hill, co-founder and CTO. Paul is a software engineer with experience working at Google, Facebook, and Airbnb.
  • Vincent Zhou, co-founder, and CIO. Vincent is a former professional poker player and has experience working as a software engineer at Google.

The perpetual Protocol has a strong team with a track record in the blockchain industry. The team is experienced and has the necessary skills to build a successful protocol. The perpetual protocol team is based in Singapore and is composed of experienced professionals with a trading, technology, and product development background. The team has worked on projects such as 0x Protocol, Kyber Network, MakerDAO, and Augur.

The perpetual Protocol is currently raising funds through a private sale and is planning to launch the mainnet in Q3 2020.

The Roadmap 

The perpetual Protocol has a clear roadmap for the next few years. Some of the key milestones include:

  • Q1 2020: launch of perpetual contracts on Ethereum mainnet
  • Q2 2020: launch of cross-chain perpetual contracts
  • Q3 2020: launch of perpetual contracts on EOS
  • Q4 2020: launch of perpetual contracts on Bitcoin
  • 2021: launch of perpetual contracts on other major blockchain networks

The perpetual Protocol has a clear roadmap and is on track to achieve its milestones. The Protocol has already launched perpetual contracts on the Ethereum mainnet and is working on launching perpetual contracts on other blockchain networks.

Why Invest in the Perpetual Protocol? 

Perpetual Protocol is a well-built protocol with a strong team and a clear roadmap. The Protocol has the potential to become Defi’s “building blocks” and has already launched perpetual contracts on the Ethereum mainnet. Perpetual Protocol is a good investment.

This crypto ban in China is proving effective because a switch between central and decentralized exchanges is causing more traders’ interest in PERP. The 20x leverage is difficult to find. Perpetual Protocol cannot run out of liquidity due to an insurance policy. The perpetual Protocol has a very good potential to expand.

Perpetual Protocol Price

The current price of PERP is $0.76, with a 24-hour trading volume of $ 24,864,844. PERP price is up 2.0% in the last 24 hours. It has a circulating supply of 10 million PERP coins and a max supply of 100 million. Binance is the current most active market trading it.

Its current market cap is $7.6 million. The highest price PERP reached was $ 2.33 on March 12th, 2020.In seven days per year, perpetual protocol prices jumped 11.64%. The price rose 15.82% during the previous 24-hour period.

The price jumped 33% in a single hour. It is currently $1.66729 per PEP. The Perpetual Protocol was 9.77% lower than last time at $7.64999. Presently, there is 74.75,000 PERP in circulation — the same as in 2000.

If you are looking for a well-built protocol with a strong team and a clear roadmap, consider investing in Perpetual Protocol.  Perpetual Protocol is a good investment for investors looking for exposure to the growing DeFi market.

How to Buy and Store PERP Tokens 

The perpetual protocol token (PERP) is an ERC-20 token and can be stored in any wallet that supports ERC-20 tokens. Some popular wallets that support ERC-20 tokens are MetaMask, MyEtherWallet, and Trust Wallet.

PERP tokens can be bought on cryptocurrency exchanges such as Binance, Huobi Global, and OKEx.

  • Binance: PERP/BTC, PERP/USDT
  • Huobi Global: PERP/USDT
  • OKEx: PERP/USDT, PERP/BTC
How to buy PERP

If you’re looking to buy some PERP tokens, here’s a quick guide on how to do so:

  • Register for an account on Binance Exchange
  • Add Bitcoin or Ethereum to your account
  • Buy PERP with BTC or ETH
  • Withdraw PERP from your wallet
  • Congratulations, you now own some PERP tokens!

Perpetual Protocol is a good investment for the long term. The Protocol has a strong team and a clear roadmap and is already launched on the Ethereum mainnet. The perpetual Protocol also has a good potential to expand.

Conclusion

Perpetual Protocol is a new protocol that offers several benefits compared to other perpetual contract platforms. However, it is still in its early stages and is subject to all the risks associated with new protocols.

Before you buy Perpetual Protocol, always check the price and before investing in Perpetual Protocol, do your research and understand the risks involved.

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