Recently, I’ve been researching perpetual contract platforms and found the Perpetual Protocol project quite interesting. I want to share with everyone what perp is and how it works.

In simple terms, Perpetual Protocol is a decentralized derivatives trading platform that allows you to bet on the price movements of crypto assets. Its unique feature is that it’s built on the xDai chain, which is not only faster than the Ethereum mainnet but also nearly free in transaction costs.

When it comes to the technical design of perp, the most impressive aspect is the zero gas fee. All transactions on the platform are conducted using USDC, and users don’t even need to set up complex wallets in advance. You can log in directly with MetaMask or other compatible wallets, deposit USDC, and start trading. Your funds are controlled directly by your wallet, which lowers the entry barrier for beginners.

Regarding the background of Perpetual Protocol, this project was founded by Yenwen Feng and Shao-Kang Lee in 2018. Both founders have extensive technical experience in cryptocurrency and blockchain fields. They aimed to showcase the possibilities of derivatives markets through DeFi infrastructure, which led to the creation of Perpetual Protocol.

The PERP token itself is the governance token of the protocol, adhering to the ERC-20 standard. Holders of PERP can vote on the future development of the protocol based on their token holdings, representing a typical decentralized governance model. Additionally, the platform rewards users through trading incentives and liquidity mining to encourage participation.

To sum up simply, Perpetual Protocol’s perp token is the native governance token for perpetual contracts. The core advantage of the entire platform is providing a low-cost, high-efficiency derivatives trading experience. If you’re interested in DeFi derivatives trading, you can check out the relevant asset prices on Gate and learn about the development trends of such projects.