Recently, many people have been asking what PERP is. In fact, PERP refers to the native token of Perpetual Protocol. Today, I will give you an overview of the core logic of this project.

Perpetual Protocol was founded by Yenwen Feng and Shao-Kang Lee in 2018, both of whom have extensive backgrounds in cryptocurrency and blockchain. Their goal is quite interesting — to bring derivatives markets onto DeFi infrastructure, allowing everyone to participate in perpetual contract trading.

Regarding the PERP token itself, it is an ERC-20 standard protocol token primarily used to facilitate decentralized governance of the platform. PERP holders can vote on decisions proportionally to their holdings, embodying PERP’s role in governance.

The platform’s smartest feature lies in its technical choices. Instead of building on the Ethereum mainnet, they chose the xDai scaling solution. The benefits of this are faster transactions and zero gas fees, with all trades settled in USDC. Users can connect directly with MetaMask or other compatible wallets without complicated setup, making it more user-friendly for newcomers.

The operational logic is essentially a decentralized derivatives platform. Users can bet on the future price movements of crypto assets through perpetual contracts. The platform also incentivizes users to earn rewards by trading or providing liquidity. Compared to traditional exchanges on the Ethereum mainnet, this setup is indeed faster and cheaper.

Overall, the combination of PERP tokens and Perpetual Protocol aims to redefine the derivatives trading experience through DeFi. If you're interested, you can follow PERP’s price movements on Gate.