Persistent protocol: the next level of decentralized transactions

So the truth is Perpetual Protocol, what is the process improvement that just released version 2, how to use Uniswap V3 and what is the future of Perpetual? You will find answers to the questions in this section.

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Perpetual Protocol is a DeFi project whose main objective is to provide the best, most accessible and most secure exchange for the future. for

Perpetual Protocol was developed in 2019 by a small team of startup founders and software engineers. The project was originally called "Strike" and later evolved into a permanent giveaway and was renamed for summer 2020.

The first version of the contract was published on the xDai network in December 2020. The second version of the contract was named Curie in honor of the famous scholar and Nobel laureate Marie Curie and was published in Optimism on November 31, 2021 . ...

The design of the current process, which will be explained later, is very interesting because it uses the spirit of DeFi "donate lego" to create other existing DeFi projects and provide building blocks for other future procedures. for

Persistent Protocol is one of DeFi's activities focused on derivatives. Before we jump into the founder of Perpetual, let's understand all the economic benefits that come with a committed and perpetual future. for

the contract is permanent

Perpetual futures are one of the most popular cryptocurrencies in the cryptocurrency space. Originally provided by a well-known base like Bitmex, Binance or Bybit, they now access DeFi. for

Like any other asset, eternity affects the value of certain financial assets without maintaining the bottom line. It can be used for many purposes including price speculation, hedging, or arbitrage. for

Perpetual futures contracts can be held and traded indefinitely as they have no expiration date and contracts compared to futures contracts.

No contract date is advantageous for traders because they don't have to deal with multiple contracts with different dates. For futures models, the settlement date is very important because the price of the futures contract can be linked to the actual value of the property on the settlement date. for

To ensure that the value of the open-ended contract does not differ too much from the value of the asset, the open-ended contract uses financial interest. Fees are paid regularly and support is given to one side of the business partner for long term (long term) employment or short term (short term) employment.

In general, if the value of the open-ended contract is greater than the cost of the asset, interest rates will be good and long-term trading will be short-term. If the cost of the open-ended contract is lower than the cost of installation, the situation is different. In this case, the shorter it is, the longer it is, the longer it is. for

This combines the perpetual cost of an asset with the cost of security below. In addition to raising interest rates, price speculators and arbitrators help ensure that the prices of various derivatives or trading venues are not too different. for

Perpetual futures contracts also provide an easy way to shorten a particular asset, and trading participants may benefit from a reduction in house prices over time. .

It is also easy to gain leverage, giving you control of a larger position if possible with the same investment. While this is beneficial in some cases, it can also be very risky as the market moves to the trader's position and the less guaranteed position will be liquidated. for

In general, derivatives trading helps you find the value of a wide range of assets because it provides a convenient location for everyone involved in meetings and transactions (usually a large market). For some financial instruments, market derivatives can also be a key market for value discovery. for

Persistent protocol

Perpetual Law allows you to trade various perpetual contracts of the most popular cryptocurrencies such as Bitcoin or Ethereum for many other benefits that will be added to future transactions. for

Unlike middleman exchanges that offer similar products, Perpetual Protocol does not hold users' money, so users always have control over all of their assets. More importantly, users can make the product look commercial without permission. for

Currently, Perpetual uses USDC Stabilitycoin as its primary product. This can be extended to other types of future contracts. for

Using USDC on all platforms also means that all exchanges are in USDC. This means that if a user speculates on the price of Ether and, for example, doubles their funds, they will receive more USDC in their account after closing their position.

Process V1 was initially implemented on Ethereum Layer 1, but after slower performance and higher exchange rates, the process was announced on xDai in 2020. for

V2

V2 iterates from the get-go to develop and present a new project management and marketing model that uses Uniswap V3 and its value-added products. for

The basis of continuous development is the exchange of smart contracts. Clearinghouse is responsible for the creation and destruction of virtual tokens called v-tokens held by users on behalf of contracts. for

When a user deposits USDC on an exchange, the clearinghouse contract sets up a v-token using the maximum potential. This does not mean that the user should use the maximum power when opening a task, but gives the user the option to do so by announcing multiple tokens that the user will buy or not buy.

For example, if the user decides to deposit 1000 USDC, the contract will provide 10,000 v-tokens (vUSD in this case). for

To create a unique function, the user can select the device they wish to trade in and use the v-token to access the task. for

For example, if a user wants to buy more BTC, they can ask the maker to exchange vUSD tokens for v-BTC. In this case, the contract will use the Uniswap V3 vUSD-vBTC pool.

As mentioned earlier, users can use some or all of their vUSD tokens depending on the comparison they choose. for

Once a user decides to close a BTC trade, they can trade vBTC tokens for vUSD to secure profit or loss as the price of Bitcoin moves after the trade is opened. for

In addition to being used by traders, clearing house contracts are also used by businesses. for

In Perpetual, Makers are the joint ventures that generate income for regular trading. This way, when an investor is in a pool that provides liquidity, manufacturers make money by accumulating exchange rates. Manufacturers can also use leverage to generate revenue. for

Due to the Uniswap V3 design, delivering fluidity is more difficult than other AMMs. In particular, manufacturers must determine the price range that will provide liquidity. Plus, only trades that go through the potential can be costly. for

Manufacturers are like traders and can use USDC to process trade on an ongoing basis. When manufacturers decide to put stock on a legacy, placing USDC in a clearinghouse contract will provide a vToken and simply add liquidity to the optional Uniswap V3 pool. for

For example, if a manufacturer decides to market a product BTC-USDC, they will use the USDC to create the actual vUSD and vBTC report and then add it to the vUSD-vBTC Uniswap V3 pool. for

As manufacturers are exposed to the token value of the liquid pool, they will be affected by constant losses, so they have to be careful with the resources they have and usually have a good idea to deliver the product. . for

For the convenience of Uniswap V3, Perpetual works with Popsicle Finance, Visor, and other entrepreneurs.

Interestingly, Perpetual Protocol was developed by Uniswap V3 and uses the above mentioned "Money Lego" spirit without permission. for

In embroidery designs, the process continues using different lines. This means that the user's finances are held in a single pool and all operations use that pool as a business enterprise. for

This makes the product more manageable as users do not need to add or remove edges for each job, but in this mode one job can affect others and should be used with caution. If a user has too many powerful tasks, the task against the user puts others at risk and can be accomplished. Users can also use separate templates by creating separate portfolios for each project. for

2nd step

Process V2 has just been released by Optimism, an expected rollup of Ethereum's Layer 2 scaling solution. for

Starting from a unified base will allow the Perpetual Protocol to measure and achieve low costs and high volatility. This is very important for the success of the exchange. The benefits of integration become more focused over time as existing solutions become more mature and cost effective. for

V1 on xDai. If Uniswap v3 boots from xDai one, V2 can boot from xDai one.

Perpetual also plans to launch Arbitrum in the near future. for

Perpetual V2 is not limited to the initial version. In fact, throughout the deployment of V2, the contract plan will provide additional functionality. Some of them include restricted orders and shutdowns, private property, multiple assets, mining, and even unlicensed business establishments. for

In the latter case, anyone can establish a stable market for all asset carriers in V2, as long as the pricing data provided by Uniswap v3 TWAP or the Chainlink oracles.

Additionally, in future updates it will not be limited to cryptocurrencies, but will expand to markets such as currencies, commodities, and commodities.

concludes

The continuous process is clearly one of the most extensive procedures focused on DeFi derivatives. for

The team appears to have learned important information from the initial contracts and have come up with new models and improvements that should lead to a longer business contract and supply customers and products. Both are more attractive.

The perpetual protocol is a good example, and the project has benefited greatly from Layer 2 Ethereum solutions like Optimism or Arbitrum.

This shows that it is better to boot directly from Layer 2 without referring to Layer 1. Due to the limitations of Ethereum Layer 1, check if other processes follow the procedure in this way and try to on board. for