Recently, many people have been asking what a perpetual contract platform is. Actually, Perpetual Protocol is a pretty interesting project and worth a deep dive.



Let's start with the founders. This project was founded by Yenwen Feng and Shao-Kang Lee in 2018. Both founders have substantial experience in the cryptocurrency and blockchain space. What they want to do is quite clear: to demonstrate how derivatives markets can play a role within decentralized finance infrastructure.

So, what does PERP actually mean? Simply put, PERP is the native token of this perpetual agreement, using the ERC-20 standard. Its core function is to facilitate decentralized governance of the protocol, allowing PERP holders to vote on decisions proportionally to their holdings. This design is quite democratic.

On the technical side, the perpetual protocol uses a scaling solution called xDai, which is much faster compared to mainstream Ethereum exchanges, and all transactions are zero gas fee, greatly improving user experience. All trades within the protocol are conducted using USDC, and all collateral is also USDC, making the design very straightforward.

The user experience is also well-implemented. Investors don't need to set up complicated wallets in advance; they can simply use their existing MetaMask or other compatible wallets to deposit USDC through the trading interface. Throughout the trading process, funds are always controlled by the user's wallet, ensuring security.

In terms of core functionality, the perpetual protocol mainly offers perpetual contract trading. Users can bet on the future price movements of crypto assets, effectively enabling derivatives trading within DeFi. The platform also encourages user participation through trading incentives and liquidity mining, which is a common approach among many DeFi projects.

Overall, the logic behind PERP is quite clear, and its technical choices are very pragmatic. If you're interested in perpetual contracts or DeFi derivatives, this project is definitely worth paying attention to.
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