Perpetual Protocol (PERP)

Perpetual Protocol (PERP) is an Ethereum token that powers the Perpetual Protocol, a decentralized exchange for perpetual contracts. Perpetual Protocol (PERP) is a DeFi platform that focuses on futures trading such as support for digital currency trading and other assets such as gold, crude oil and fiat. Crypto derivatives came to add entertainment to virtual currency trading. Common derivative products include perpetual and perpetual contracts. In a futures contract, participants bet on the future price of a crypto asset.

A perpetual contract, on the other hand, mimics the features of a futures contract, but lacks a fixed expiration date. Unfortunately, due to the risks and costs of the other party, its absorption has been slow.

Fortunately, decentralized financing (DeFi) has eliminated the risks of derivatives trading on a centralized platform. However, the approach of Uniswap, Balancer and other DeFi networks to power the DeFi ecosystem to manage perpetual contracts was not ideal. Thus, the Perpetual Protocol (PERP) filled the gap with a new marketing model.

What is a Perpetual Protocol (PERP)?

Perpetual Protocol (PERP) is a decentralized exchange (DEX) for futures trading in Ethereum and xDai. Traders can leverage an increasing number of assets such as BTC, ETH, DOT, SNX, YFI, etc. with 10x leverage. Trading is illegal, which means that traders always keep their assets and are in a chain. Perpetual Protocol uses a virtual automated market maker (vAMM) that provides liquidity in a predictable pricing chain determined by fixed product curves. In addition, the perpetual protocol designed its VAMMs to be market neutral and completely secure.

The stated vision is to create a decentralized, accessible and secure derivative trading platform in the world. By creating our DeFi projects and allowing projects based on a perpetual protocol, the company embraces the “DeFi money lego” ethic. The Perpetual Protocol, after achieving several milestones in its roadmap, such as launching stock pools and enforcing restrictions and stop orders, intends to expand into other chains, introduce leverage tokens and pave the way for dynamic liquidity in pools. The part of the spirit that led to the creation of the perpetual protocol is clearly evident in your community. In fact, we can combine them into four very clear points that explain the purpose and vision of the Perpetual Protocol (PERP), which are:

1. Democratize powerful trading tools and expand economic inclusion around the world. This is due to the fact that the Perpetual Protocol can provide access to perpetual instruments, one of the most complex and centralized financial instruments in the traditional financial world, and is now available to everyone thanks to the Perpetual Protocol.
2. Establish a suitable AMM for low-liquidity futures due to domestic liquidity, which enables the trading of long-term assets. This is possible thanks to VAMMs, which are improvements to the AMMs we typically find in other projects.
3. Reduce perpetual losses for participants in protocol liquidity pools. In this way, the investment of liquidity suppliers is protected from fluctuations in the price of digital currencies.
4. A system that minimizes the risks of price manipulation. This is thanks to the combined system of Oracles and internal algorithms that ensure accurate information and asset price formation in the market.

Project goal and vision

• The part of the spirit that led to the creation of the perpetual protocol is clearly identified in your community. In fact, we can combine them into four very clear points that explain the purpose and vision of the perpetual protocol, which are:
• Democratize powerful trading tools and expand economic inclusion around the world. This is due to the fact that the Perpetual Protocol can provide access to perpetual instruments, one of the most complex and centralized financial instruments in the traditional financial world, and is now available to everyone thanks to the Perpetual Protocol.
• Create an AMM suitable for futures trading with low liquidity due to internal liquidity, which enables long-term trading of assets. This is possible thanks to VAMMs, which are improvements to the AMMs we usually find in other projects.
• Reduce perpetual losses for participants in protocol liquidity pools. In this way, the investment of liquidity providers is protected from fluctuations in the price of digital currencies.
• A system that minimizes the risks of price manipulation. This is thanks to the combined system of oracles and internal algorithms that ensure accurate information and the formation of asset prices in the market.

How Perpetual Protocol works

The transactions that appear in the perpetual contract play a major role in the perpetual protocol model (PERP). In general, it works almost like most centralized exchanges.

However, the biggest difference here is that the perpetual protocol does not require the use of a sales order book. This means that the transaction is always done immediately and without waiting for a partner or payment for the buyer.

For high volume transactions, processing speed in Perpetual is often slower than in centralized products. To overcome this defect, Perpetual performed anti-slip measures exactly on the xDAI tool. Thus, although it works on the Ethereum platform, Perpetual processing speed is much faster than the base layer of the Ethereum blockchain.

Who are the founders of Perpetual Protocol (PERP)?

Perpetual Protocol (PERP) was launched by Yenfen Weng and Shao-Kang Lee, two Taiwanese digital currency entrepreneurs who had previously started payroll and accounting firms for crypto startups. Most team members are based in Taiwan. Perpetual Protocol (PERP) is supported by many reputable investors such as Zee Prime Capital, Multiarrows Capital, CMS Holdings, Binance Labs and Alameda Research, FTX Strategic Partner. With their support, the company closed the first round led by Multicoin Capital for $ 1.8 million in 2020.

What makes a Perpetual Protocol unique?

The purpose of the Perpetual Protocol is to create a platform for the trading of perpetual contracts that anyone can use. To do this, users must be able to trade with good liquidity and low slip. The Perpetual Protocol solves this problem using the vAMM solution. The Perpetual Protocol (PERP) does not follow the typical centralized exchange order model. Instead, traders trade with a virtual automated market maker whose initial liquidity is determined by the operator.

For example, suppose an operator sets vAMM liquidity at 100 VETH to 40,000 vDAI. A person who deposits DAI in ETH for a long time pushes the price of ETH upwards and creates an incentive to reduce VETH if the price does not match market prices. Traders who abandon VETH also deposit DAI as collateral and return the VETH price to equilibrium. Having a liquidity swap is unnecessary, because vAMM acts as an account for all transactions and automatically balances in the long run. In practice, transactions in the Perpetual Protocol are all settled in the USDC.

Using this vAMM model and creating an exchange in xDai, traders can enjoy chain transactions without payment and instant settlement. In addition, the Perpetual Protocol (PERP) supports non-gaseous deposits over $500, meaning that traders can deposit with 0 ETH in their wallet.

Advantages and disadvantages of Perpetual Protocol (PERP)

These are the positive aspects:

There are several things that differentiate Perpetual Protocol (PERP) from their counterparts.

High levels of security

Perhaps one of the biggest selling points of this platform is the very secure perpetual protocol. The source is open, so anyone can check out the red flag. In addition, external audits have been performed by the well-known cryptocurrencies ConsenSys and PeckShield, and recommendations have been received from both. In order to secure users’ funds, it also has insurance coverage from Unslashed Finance and Nexus Mutual, two companies specializing in DeFi-related protection.

Staggering interest rates, strange and irrational conditions for receiving loans, paperwork and dependence on a central financial institution, and worst of all, long periods of time to receive money; are just some of the problems with registering and getting loans from traditional banks and financial institutions. Yet, borrowing from a decentralized financial system with reasonable interest without the need for even a single dollar of collateral and most importantly receiving money instantly is not just a dream! An instant loan or Flash Loan in a Decentralized Finance ( DeFi ) without asking for collateral does not waste even a second of the user’s time.

The blockchain has always been promising in the global financial world, without the need for a central institution of power. This technology underpins the formation and flourishing of decentralized finance with smart contracts and decentralized financial applications that help people anywhere in the world benefit from any type of banking service without having to deal with complex administrative processes.

Peer-to-peer features and strong, transparent backing such as the Blockchain make these services distinct and superior to traditional financial services in many ways. One of the most widely used areas in the defense industry is lending platforms, which replace the tedious process of borrowing from traditional financial institutions with a few simple clicks.

The increasing development of blockchain technologies has made lending platforms more attractive to their users every day. One of these options is to be able to get an “flash loan” in the shortest possible time without the need for collateral. For more information about this type of loan, read this article from Coinmarketsig.com.

What is a flash loan or an instant loan in DeFi?

Flash loans allow digital currency users to receive millions of dollars in digital assets in a matter of seconds without the need for collateral. This process is completely decentralized and does not require special documents. Proponents of her case have been working to make the actual transcript of this statement available online.

The Marble Definition Protocol introduced the concept of instant loans in 2018; But its main reputation dates back to 2020, and it offers lending options through both the Aave platform and the dYdX decentralized exchange. It is interesting to know that in the last days of 2020, Avi was lending $100 million a day, and the total amount of loans offered on this platform by the end of 2021, reached more than $5 billion.

To better understand the reason for the popularity and popularity of Flash Lones, it is better to first look at the process of receiving traditional and defaults.

Traditional loans

Traditional loans are often offered under the supervision of banks and financial institutions, which are controllers and intermediaries between depositors and borrowers. In this case, the borrower must provide a certain asset to the bank as collateral in order to receive a certain amount of money. Also, these loans are generally associated with relatively high interest rates.

Although the system has provided funding and boosted the cycle of businesses and manufacturing companies over the years, problems such as banks’ strict criteria for customer authentication, the lengthy loan application process, and large interest rates on some loans (especially those with low collateral) have caused many Individuals and small startups are not eligible for a loan or receive it too late.

Lending in Defi

Distributed head office technology allows users to receive products and services such as digital loans in a decentralized and peer-to-peer manner. In diff lending instead of centralized financial institutions, we are dealing with intelligent contracts that work on the basis of algorithms and often provide the same financial services at the same interest rate to all users without the need for a complex process of customer identification and authentication.

However, due to the fluctuations of digital assets, most platforms require excessive collateral from the user to cover the risk in order to cover the risk, which can face the borrowing process with many risks and problems, especially for the borrower.

Flash loans in DeFi

Instant lending is a type of smart contract lending that some decentralized financial networks and protocols provide to investors. Instant loans are exactly the opposite of regular defaults and not only do they not receive excessive collateral, but they do not receive any “guarantee” from the borrower at all.

However, like any other type of loan, in instant loans the borrower has to repay the loan, except that the receipt and repayment are in a single transaction and are done in just a few seconds. If during this period, the borrower does not repay the principal, the conditions specified in the smart contract and the transaction will be refunded.

Key features of instant loans

By comparing the three types of loans we have described, we can summarize the basic features of instant loans in DeFi as follows:

No need for collateral

Most lenders ask borrowers to provide collateral to make sure they can get their money back on collateral if they do not repay the loan; however, it is not necessary to provide such proof in instant loans without collateral.

Of course, the lack of collateral does not mean that lenders cannot get their money back. Flash loan transactions through smart contracts guarantee the safety of lenders. Borrowers, instead of providing collateral, agree to repay the loan within a few seconds, otherwise the transaction is reversed; just like the borrowing process is not done at all.

based on Smart contracts

The mainstay of instant loans is smart contracts; these contracts ensure that no cash will be received until certain laws are enforced. These rules do not include receiving collateral, checking the borrower’s credit or similar processes; Therefore, the borrower can easily get large loans without having the initial capital.

However, the terms of these smart contracts require that the entire loan process, use, and repayment be done in a single transaction. In the Ethereum network, each transaction takes about 13 seconds; so we only have a few seconds between receiving and paying instant loans on the Ethereum network. If during this period, the borrower does not repay the principal, the conditions specified in the smart contract and the transaction will be refunded.

In practice, even if the borrower does not receive a guarantee, under the terms of the smart contract, not repaying is tantamount to not receiving a loan. Therefore, getting an instant loan poses little risk to both the lender and the borrower. The borrower does not need the initial capital and the lender can be sure that he will receive the loan repayment.

Delivery in the shortest time

Getting a loan is usually a long process, and eventually, if the borrower is approved for a loan, they will have to repay it continuously over months or years. Yet, the loan is repaid and repaid immediately.

What are the uses of an Flash Loan?

You’ve probably wondered what it would be like to get a loan in just a few seconds. Here are some common methods that are currently used by instant loan borrowers.

Arbitrage

Arbitrage is the main way to make a profit from instant loans. In this way, traders can earn money by using price differences in different exchanges. Suppose a certain currency is traded for $1 in exchange A and $2 in exchange B. In this case, you can use the instant loan to buy $100 of this coin from exchange A and sell the same amount in exchange B for $200. Then you repay the loan and put $100 in your pocket.

It should be noted that these loans, in addition to not requiring collateral, do not have a high fee. For example, the AVI platform deducts only 0.09% of the total loan amount as a fee. Therefore, we can now consider the most important application of instant loans to be the multiplication of profits in digital currency transactions.

Exchange of collateral

Collateral Exchange is the rapid exchange of the collateral of a loan for another type of collateral. Because the assets pledged in DeFi are subject to price fluctuations, there is a possibility of liquidation and loss of initial loan capital. Instant loans help users quickly close a collateral position and immediately open a new collateral position with different assets. Although this method does not have much potential for profit, it is a good tool to facilitate the DeFi borrowing process for professional traders.

These days there is usually an old currency behind every new digital currency. A classic example is when the bitcoin cache was separated from the bitcoin. In the volatile and dynamic world of DeFi (Decentralized Finance), consider SushiSwap Fork Uniswap, one of the largest and most valuable decentralized digital currency exchanges. SushiSwap is one of the fastest and most exciting types of digital currencies.

What is SushiSwap?

SushiSwap is software that runs on the Ethereum network and seeks to encourage a network of users to use a platform where users can buy and sell encrypted assets. Similar to platforms such as Uniswap and Balancer, SushiSwap uses a set of liquidity pools to achieve this goal. Users first lock assets in smart contracts, and traders then buy and sell cryptocurrencies from these pools and exchange one token for another.

SushiSwap is one of a growing number of Decentralized Financial Platforms (DeFi) that allows users to trade digital currencies without the need for a central operator. This means that its original digital currency holder, SUSHI, decides on SushiSwap software. Anyone with an asset balance can make changes to the way it works and can vote on suggestions made by other users.

How does SushiSwap (SUSHI) work?

SushiSwap is a platform that allows users to buy and sell various digital currencies. The fee for each swap is 0.3%, of which 0.25% is paid to liquidity providers and 0.05% to SUSHI and given to SUSHI token holders.

This automated market making (AMM) platform as mentioned earlier, acts as a decentralized exchange. There is no central reference or grammar. SushiSwap digital currency trading is done using smart contracts in liquidity pools. SushiSwap customers become liquidity providers (LPs) by locking their encrypted assets into a liquidity pool. At SushiSwap, anyone can provide cash and incentives commensurate with their share of the pool. This is done by placing two tokens of equal value in the pool. Each pool acts as a marketplace where other users can buy and sell tokens. For a more complete explanation of how AMM works in DEX protocols, read our Uniswap page.

You can exchange ERC-20 tokens in SushiSwap like any other DEX protocol. For instance, stable coins such as USDT and BUSD can be converted to digital currencies such as Bitcoin (BTC) and Ethereum (ETH). You can also generate passive cash by participating in other sushi operations. For example, you can share SUSHI and get xSUSHI in SushiBar. Holders of xSUSHI staked can receive 0.05% bonus on all transactions from all cash pools. Sushi holders who invest their tokens in xSUSHI can earn 2.5% of every NFT transaction in the NFT market after the release of Shoyu.

Bentobox SushiSwap is another way to get motivated. This unique treasury enables customers to take advantage of all of SushiSwap’s lucrative options. This means that by storing your assets in BentoBox, you can earn money both by owning shares in SushiBar and by lending them to other users. At the same time, xSUSHI cardholders can benefit from the transaction fee collected by Bentbox.

Who are the founders of SushiSwap (SUSHI)?

Chef Nomi and 0xMaki (alias) founded SushiSwap in August 2020. Aside from their Twitter identities, there is little information about the two. The project attracted a large number of users immediately after launch and was listed on Binance on September 1, 2020.

Sam Bankman-Fried, CEO of FTX Derivatives Exchange and small trading company Alameda Research, seized real ownership of SushiSwap on September 6 and transferred the tokens from Uniswap to the SushiSwap platform on September 9.

Bankman-Fried joined Jane Street Capital, a small business, after graduating from MIT with a degree in physics, where she first encountered digital currencies. Sam Bankman-Fried is a well-known figure in the world of digital currencies and was first associated with SushiSwap when the SUSHI token was listed on the FTX Derivatives Exchange.

What makes SushiSwap (SUSHI) different?

SushiSwap distinguishes itself from traditional decentralized exchanges as an automated market making (AMM) by eliminating order books while avoiding liquidity problems. SushiSwap, like its parent company AMM Uniswap and others, has done several important tricks to increase the impact of network participants on the company’s future.

The fate of SushiSwap is completely under the control of SUSHI holders. SUSHI users can vote on protocol improvement proposals, determine cost structures, vote on new liquidity pools, and jointly fund sushi-related projects.

Some Uniswap consumers were unhappy with what they thought was a low liquidity provider fee. The platform’s interaction with venture capitalists and the decentralization of Uniswap governance were also criticized.

The introduction of the SUSHI token was one of the key innovations of SushiSwap. SUSHI tokens allow LPs to receive incentives, however, unlike Uniswap, they allow holders to receive a percentage of the fee long after the liquidity has stopped actively.

In addition, digital currency addresses the issue of Uniswap decentralization by granting sovereign rights to sushi holders. SushiSwap took a similar approach to distribution and opted for “fair startups”, which means not assigning passwords to venture capitalists.

Sushi tokens

Sushi tokens are given as a reward for extracting liquidity. This token allows its holders to participate in the management of the platform and gives them the right to receive part of the costs paid to the protocol by traders. To manage the platform, SUSHI holders can submit a SIP Improvement Swipe offer that token holders can vote on with their tokens.

Of course, some people are also speculating about the price of sushi, and the tokens can be traded in large exchanges such as Binance, FTX and OKEx.

By March 2021, approximately 140 million sushi will be in circulation, for a total supply of approximately 205 million sushi, which will grow at the rate of the Ethereum block. According to the strategy, according to this strategy, the daily supply of sushi will increase by 650,000 machines, bringing the total supply to 326.6 million one year after launch and close to 600 million sushi after two years. Shortly afterwards, the SUSHI community voted to gradually limit the number of sushi produced per block by 2023, when the maximum sushi supply will reach 250 million.