Does perpetual swaps trading fascinate you, but you can’t participate in it due to high transaction fees and delayed settlement?
Don’t worry! Perpetual (PERP) protocol is here to streamline your perpetual swaps trading journey.
But how does PERP work and what makes it valuable for users? Let’s find out.
What is Perpetual Protocol (PERP)?
PERP is primarily a decentralized exchange that facilitates the trading of swap contracts.
The protocol is built on ETH and you have access to trade a wide range of assets, including cryptocurrencies, gold, and commodities.
But wait; what’s a perpetual contract? Well, it’s a derivative product that lets users take a long/short position without any expiry date. That being said, let’s dig deeper into the origin of PERP.
Origin and History of Perpetual Protocol
PERP was initially launched as Strike Protocol in late 2019 and the idea was inspired by emerging DEX applications of that time, such as UniSwap and Synthetix.
Later, the founders, Shao-Kang Lee and Yenwen Fang saw an opportunity to launch a cost-effective, fast, and fully decentralized DEX platform, specifically for perpetual contracts.
Subsequently, the first version of the protocol was rolled out in December 2020 on the Ethereum blockchain.
Since the launch, the protocol has grown both in terms of trading volume and user adoption.
Objective and vision of the project
In the past, only a few large financial players and a handful of high-net-worth individuals (HNWI) were able to participate in leveraged derivatives trading.
The primary vision and objective of PERP is to change this dilemma and lower the barrier of entry for retail users. It aims to make future trading accessible for users by using a virtual Automatic Market Maker (vAMM).
Since 2021, Coin-Labs.com has partnered with Bybit and is few of the highest-ranking of affiliate program contracts.
Therefore, if you sign up for Bybit through the button above, you will get the most discounted fee benefit and participation in a bonus event offering up to $500.
Unique Point of Perpetual Protocol
The fundamental unique aspect of PERP is its design, which was designed to mirror the processes of a traditional exchange.
By far, PERP achieves this objective by integrating a smart vAMM and insurance fund. The primary benefit of vAMM is that it provides efficient price discovery and reduces slippages compared to traditional vAMM. (more on this later)
That’s not all! Some other unique characteristics of PERP are as follows:
Up to 20x leverage
The protocol is quite capital efficient, enabling traders to take up a long/short position with up to 20x leverage at any time.
Although leverage trading is risky, it is equally rewarding for traders who are well-versed with market timing and derivatives positions.
Liquidity
vAMM matches trades that are collateralized and market neutral. As a result, there’s no counterparty which indicates a high degree of liquidity in the protocol.
No Impermanent Loss
If you deposit your funds in a pool to earn passive income, your investments may take a hit as a result of market volatility.
Fluctuations fortunately don’t affect stakers on PERP, ultimately reducing chances of impermanent loss.
How Perpetual Protocol Works
PERP is built on ETH and it uses an advanced AMM for liquidity management. Like any other protocol, users deposit funds in a collateral pool before trading on the protocol.
However, PERP has a slightly advanced AMM system, also known as vAMM.
Virtual Automated Market Makers (vAMMs)
vAMM determines the price of perpetual contracts algorithmically through the forces of supply and demand. The system automatically adjusts the price when a trade is executed to ensure adequate liquidity in the pool.
The vAMM is for price discovery and doesn’t serve as a spot exchange. In simpler terms, vAMM uses the constant product curve in its AMM for price discovery to manage leverage and short positions.
Moreover, vAMM has no digital assets stored in its liquidity pool.
Transaction Fees Pool and Insurance Fund
The transaction fees are paid using the native token, PERP.
The usual fees are 0.01% or less and half of the fees are stored in an insurance fund.
The insurance fund is designed to fund traders’ position in the case of unexpected losses or sudden drop in liquidity.
Perpetual Contracts
PERP primarily facilitates trading of perpetual contracts – derivatives trading instruments that allow a trader to take a long/short position without any expiry date.
From cryptocurrencies to gold, a wide range of assets are available for trading of perpetual contracts.
Advantages of Using Perpetual Protocol
Some of the key advantages of PERP are as follows:
- Low fees: The trading fees are quite low – 0.01% or lower of transaction fees.
- Fast settlement: Thanks to the unique AMM design, settlements are done within seconds.
- Security: The protocol has been audited by renowned crypto firms, such as Peckshield and ConsenSys, and has received positive recommendations from both. Additionally, the protocol also receives insurance coverage from Nexus Mutual and Unslashed Capital.
- Capital efficiency: You can participate in leverage trading by borrowing up to 20x of your capital.
- Non-custodial: The protocol follows a non-custodial design, whereby the traders can retain control of their assets and funds.
Comparison with other DeFi projects
Some other DeFi projects that operate similarly to PERP include FutureSwap, UniSwap, dYdX, and several more.
UniSwap vs PERP
UniSwap and PERP are quite similar. However, UniSwap uses a standard AMM for price discovery and token swaps, while PERP uses vAMM or constant product formula for the same.
Moreover, PERP doesn’t contain any assets in its liquidity pool, while UniSwap does.
dYdX vs PERP
dYdX is a decentralized exchange, while PERP is a protocol. The primary purpose of dYdX is to enable users to trade token pairs via Polygon or Ethereum smart contracts. On the other hand, PERP supports the trading of leveraged perpetual swaps.
FutureSwap vs PERP
FutureSwap is also a decentralized platform that facilitates trading of leveraged perpetual contracts. It’s quite similar to PERP in terms of processes and operations. However, there are two key differences:
- PERP uses a vAMM, while FutureSwap has a standard AMM.
- PERP offers 20x leverage, while FutureSwap offers a 10x leverage.
The PERP Token
PERP is the native token of the PERP protocol and it’s used for several purposes, ranging from participating in governance, paying trading fees, and providing liquidity to the protocol.
Governance
Users with PERP tokens have voting rights based on the number of PERP holdings. These users can vote for changes in governance or for future developments in the protocol.
Utility
The primary utility of PERP token is that it’s the primary medium of exchange for payment of trading fees on the exchange. Similarly, PERP token also provides liquidity pool to the protocol, and liquidity providers earn through staking.
Outside the network, users can exchange the token with other pairs and realize profits.
Tokenomics
The total supply of PERP tokens is 150 million and the current circulation level is roughly around 66 million. The token’s price can be inflated in one of two ways:
- Governance decides to mint more tokens.
- Insurance fund is exhausted and the minting automatically happens.
How to Buy PERP on Binance
Purchasing PERP on Binance is quite straightforward. In the stepwise guide, we’ll tell you exactly how you should purchase PERP.
Why Binance?
Binance is the largest centralized cryptocurrency exchange in the world, offering multiple crypto coins and services. Additionally, the remarkable security and low transaction fees make it one of the best exchanges for users around the world. Here’s how you can purchase PERP from Binance.
Creating an Account
First and foremost, you need to create an account on the exchange. Fortunately, it’s quite simple. Click on the link below to go to the registration page and register with a useful Coin Labs referral code. Provide your email address and set a strong password in the indicated fields.
Binance will send a verification link to your email address.
Setting Up Two-Factor Authentication (2FA)
Now, set up a 2FA to increase the account’s security. For this, you need to link your Binance account with your mobile phone as well. It’s better to fulfill KYC requirements since it unlocks all the limits on your account.
Depositing Funds
Once you’re settled with account creation, you need to deposit funds in your account. You have two options to deposit funds: fiat or crypto.
For fiat, you can deposit cash using a debit/credit card or a wire transfer from your bank account. If you’re interested in depositing crypto funds, you need to generate the deposit address and reconcile it with your wallet.
Navigating and Placing an Order
Once you have funds in your account, you can first purchase USDT on Binance. Now, you can exchange your USDT for PERP tokens on the Binance exchange. It’s quite simple.
You can place orders via the P2P method or use your bank transfer or a debit/credit card. Similarly, you can transfer your deposited funds to the spots or the future trading platform. Once you do that, search for PERP token, and voila, you can now buy/sell PERP tokens.
Transferring to a Wallet
Once you’ve purchased the PERP tokens, you can transfer the ERC-20 tokens to your metamask wallet. All you need to do is link it with your Binance account.
How to Stake PERP
PERP protocol rewards the liquidity providers on the protocol. You can also earn passive income via staking PERP tokens.
One way to stake PERP is to lock it in the Binance earn option. The other way is through the protocol itself. You can lock your PERP token for a fixed amount of time to receive staking rewards.
Future Outlook
The future outlook of PERP is quite promising and rightly so. See the smart contracts in place and the vAMM will ensure that the protocol never faces any liquidity issues. That’s why the protocol is quite secure and it’s expected that the price will increase in the future.
2021 was the best year for PERP, where the price soared to remarkable highs for the new protocol. Currently, analysts suggest the following price predictions for the protocol:
| Year | Expected Price |
| 2023 | $0.59-$0.65 |
| 2024 | $0.89-$1.02 |
| 2025 | $1.24-$1.51 |
| 2030 | $7.59-$8.96 |
Conclusion
PERP protocol has a promising future – all thanks to its remarkable vAMM and insurance fund.
The protocol is set to reach the ultimate high since it aims to make perpetual swaps trading accessible to mass traders.
Once traders are confident enough to take exposure in swap trading, PERP protocol is expected to experience a significant rise in its market price.
We Coin-Labs.com provides only objective information about Perpetual Protocol.
Therefore, we are not responsible for the investment decision in Perpetual Protocol and the resulting loss.
Perpetual Protocol Basics
Here are some factors that investors should consider before investing in Perpetual Protocol.
| Cryptocurrency Features | Perpetual Protocol (PERP) |
|---|---|
| Publisher or Developers | Shao-Kang Lee, Yenwen Fang |
| Headquarters (Registration Number) | Taipei |
| Symbol | PERP |
| Platform | Ethereum |
| Published Date (CMC Registration) | 2024-11-01 |
| Max Supply | No limit |
Reliability Score of Perpetual Protocol in 2024
These are indexes mesuring the investment reliability of Perpetual Protocol conducted by Coin-Labs.com.
| Investment Reliability Rating Items | Scores and Current Status |
|---|---|
| Company Activation Rate | / 10.0 CAR |
| Communication Rate | / 10.0 CR |
| Technology Transparency Rate | / 10.0 TTR |
| Development Participation Rate | / 10.0 DPR |
| Listing Status on the World's Top 10 Exchanges | Listed on 9 Exchanges |
| Number of Available Pairs Worldwide | 204 Pairs |
| Market Cap of the Cryptocurrency | 69,069,397 USD (Rank #431) |
The table above shows the result of investment suitability evaluation for Perpetual Protocol.
Check out how we evaluate cryptocurrencies on the crypto rating description page.
Perpetual Protocol Price
Here are the price and recent trading volume of Perpetual Protocol. (Data of 2024-11-02 00:35:00)
| Price Items | Price and Trading Volume of Perpetual Protocol |
|---|---|
| Perpetual Protocol Price | 0.636 USD |
| Price Change 24h | -1.07% |
| Price Change 7d | -6.68% |
| Trading Volume 24h | 8,632,095 USD |
| Trading Volume Change 24h | -13.73% |
Cryptocurrency Metadata
You can check the development status and social media information of Perpetual Protocol through the links in the table below.
| Metadata Source | URL |
|---|---|
| 🌎 Official Website | |
| 📖 White Paper | |
| 🛰️ Source Code (GitHub) | |
| 🎺 Message Board |
Where to Buy Perpetual Protocol
Here are the top ten world crypto exchanges where traders can buy Perpetual Protocol in 2024.
| Top10 Exchanges | Listed Status | Page URL |
|---|---|---|
| Binance | Listed | https://www.binance.com/en/trade/PERP_BTC |
| Coinbase | Listed | https://pro.coinbase.com/trade/PERP-USD |
| Kraken | Listed | https://pro.kraken.com/app/trade/perp-usd |
| KuCoin | Listed | https://www.kucoin.com/trade/PERP-USDT |
| Bitfinex | Not listed | |
| OKX | Listed | https://www.okx.com/trade-spot/perp-usdt |
| Huobi | Listed | https://www.huobi.com/en-us/trade/perp_usdt?type=spot |
| Bitstamp | Listed | https://www.bitstamp.net/markets/perp/usd/ |
| Bybit | Listed | https://www.bybit.com/trade/usdt/PERPUSDT |
| Gate.io | Listed | https://www.gate.io/trade/PERP_USDT |
Frequently Asked Questions
What is the current price of Perpetual Protocol?
Perpetual Protocol price today is 0.636 USD. Furthermore, the price of Perpetual Protocol has fluctuated by -1.07% from 24 hours ago, and by -6.68% from a week ago.
Where is Perpetual Protocol listed?
Currently, it is listed on a total of 9 among the world top 10 exchanges.
What is the market cap of Perpetual Protocol now?
Currently, Perpetual Protocol has a market cap of 69,069,397 USD, which is ranking 431 among cryptocurrencies worldwide.
How much is the trade volume of Perpetual Protocol?
Currently, 66,002,157 PERP coins are circulating through 204 market pairs. As a result, in the last 24 hours, 8,632,095 USD of PERP coins were traded in the market.
