Perpetual Protocol is a decentralized cryptocurrency derivatives protocol that provides a series of perpetual contracts and launched Curie, the second version of the protocol.
This upgrade enables Perpetual Protocol to further promote greater transaction volume through more effective liquidity allocation. Since its launch in December last year, Perpetual Protocol is currently one of the largest decentralized derivatives protocols, with a transaction volume close to 18B.
Perpetual Protocol uses vAMM (Virtual Automated Market Maker) to avoid the order book and compares it with Uniswap. However, an important difference with vAMM is that no token exchange occurs—only derivative contracts are exchanged.
“With Curie, we have not only improved the capital efficiency of decentralized perpetual contract transactions. We have also enabled market makers to create their own customized trading strategies; by using vAMM to provide leverage and centralized liquidity. This can be unprecedented The required deep liquidity foundation is completed, which is an important opportunity for traders.”
——Yenwen Feng, co-founder of Perpetual Protocol
The key enhancements provided by Curie will allow market makers to provide liquidity within a narrow price range, using methods inspired by Uniswap v3 to maximize capital efficiency.
Curie opened the way for a significant expansion and greater transaction volume. In turn, this increased transaction volume will increase the fees received by manufacturers and pledgers.
Perpetual Protocol will launch Curie on Arbitrum and other L2 solutions, allowing thousands of transactions per second. In addition to the substantial increase in transaction speed, Curie will also support cross-margin, which means that traders can use the entire balance in the account as collateral to open multiple positions.
In future updates, traders will be able to use multiple assets as collateral to open positions, which is different from USDC being the only collateral option available in the Perpetual Agreement v1.
Curie will support Chainlink and Uniswap v3 TWAP as Oracle’s index price providers, which means that if an asset has a price feed on any platform, anyone can create a permanent market for it.
As part of Curie, Perpetual Protocol is also improving security. First, Curie further delegated the risk to the agreement insurance fund. Curie reorganized the way in which funds were paid or received; this further stabilized insurance funds and made the agreement more secure.
In August last year, Perpetual Protocol raised $1.8 million in funding, led by Multicoin Capital. Later in December of that year, they launched on the mainnet, and since then they have facilitated more than 3 million permanent swaps.