Perpetual Exchange
decentralised perpetual exchange enabled perpetual futures trading on chain
perpetual futures contracts
allow traders to have more leverage and does not immediately exchange the underlying assets, as long as the margin deposit is sufficient, the positions can be held perpetually
it's the contract between long and short counter-parties
When the contract price is higher than the spot price, users with short positions are paid the funding rate, which is reimbursed by users with long positions, realign contract & spot price
Advantage vs. traditional financial process
Flexible - trade underlying asset without a pre-specified delivery date, minimise sell/buy process
Transparent - all long & short positions are visible on chain, minimise chance of price manipulation
Decentralised - minimise centralised entities that charge multiple phases of service fees, sharing protocol revenue directly with token holders
Trustless & Permissionless - everyone can trade on the exchange with whatever amount of funds
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