Perpetual Protocol update: PERP Live price, price chart, news and markets

The PERP price update as of now is $0.09811. In the previous 24 hours, its trading volume was $660,381, and its value has decreased by -2.90%. As of now, PERP's live market cap is $11,336,172, and it is ranked as the #835 on the Coincu. PERP has a circulating supply of 150,000,000 and a maximum supply of 150,000,000.

Understanding Perpetual Protocol

Perpetual Protocol presents an innovative protocol that revolutionizes the creation of perpetual futures contracts for any asset. The primary aim of Perpetual Protocol is to decentralize the trading of futures, providing a platform that offers accessibility to users everywhere and at any time, without the involvement of middlemen or intermediaries.

The Issue Perpetual Protocol Resolves

Traditional centralized exchanges (CEX) require users to connect to the market through intermediaries, and their funds are managed by the exchange itself. Despite user preferences, this centralized approach makes CEXs attractive targets for hackers, leading to several well-known hacks in the industry. Additionally, CEXs frequently encounter problems such as user fraud, as seen on the Bitmex trading platform.

Perpetual Protocol aims to tackle these challenges by providing the following solutions:

• Trustless: Users can access the marketplace directly, without relying on intermediaries.
• Non-Custodial: Users maintain full control and ownership of their assets, eliminating the need to entrust them to any third party.
• Transparency: The protocol operates through smart contracts on the Ethereum blockchain and will be managed by a decentralized autonomous organization (DAO) in the future.
• Permissionless: The platform is open to anyone, anywhere, and at any time, with no permission restrictions.

The Solution Offered by Perpetual Protocol

To address these challenges, Perpetual Protocol has created a platform that is highly functional, user-friendly, and accessible to newcomers.

The Core Offering

At the core of Perpetual Protocol lies its protocol, which comprises two key components:

• Virtual Automated Market Makers (Virtual AMMs): Taking inspiration from Uniswap, this model serves as a virtual automated market maker for the platform.
• Liquidity Reserve: This acts as collateral for the Virtual AMMs, ensuring sufficient liquidity for trading.

While decentralized exchanges (DEXs) typically rely on liquidity pools for token swaps, AMMs are not ideal for perpetual futures contracts. To overcome this limitation, Perpetual Protocol introduced Virtual AMMs, which employ the same formula as Uniswap with specific modifications:

• vAMMs serve to determine pricing rather than facilitate token swaps.
• Real assets are stored separately in a pool managed by smart contracts, eliminating the direct need for liquidity providers to supply liquidity to vAMMs.
• The "k" value in the formula can be manually adjusted.

For more information, kindly visit our Perpetual Protocol stories page.