kkay technologies
What is Perpetual Protocol – PERP Explained
Perpetual Protocol is a decentralized exchange, (DEX), for futures on Ethereum and xDai. Traders can go long or short with up to 10X leverage on a growing number of cryptocurrencies. briefly, is a decentralized perpetual contract protocol for every asset. A perpetual contract is a derivative similar to a futures contract but without an expiry date. Perpetual Protocol uses a process that includes a virtual automated market maker, (vAMM) and collateralization vault. With automated market makers, assets are deposited in liquidity pools that have two tokens as a trading pair. Liquidity providers which are known as, (LPs) earn fees from that pool. These fees are obtained from users who trade against assets in the pools. The virtual automated market maker is made for price discovery, and not spot exchange. With most automated market makers, a user can deposit two assets into a pool which are represented as x and y in the well-known constant product formula, pioneered by Uniswap. x * y=k. #Perpetual Protocol #PERP