What is Perennial Finance? With the potential of the backer team, can the project rise to become a bright star in the Arbitrum ecosystem? Let’s find out through the article below.
What is Perennial Finance?
Perennial Finance is one Perpetuals trading platform built on the Arbitrum ecosystem.
Perennial Finance uses the AMM model instead of Orderbook like many Perps exchanges are developing, besides the protocol also allows investors to trade without worrying about price slippage, flexible customization of leverage (up to x10). , trade products of secondary DeFi markets (Squeeth) & combine multiple trading positions at the same time.
What is the Operating Mechanism of Perennial Finance?
Perennial Finance operates as one AMM peer-to-pool (user interacts directly with the pool) for derivative assets. It can be imagined that Perennial’s model is similar to the operating model of Uniswap Trader (Taker) & MakerThe liquidity pool acts as a connecting intermediary, and the price is provided by the oracle.
- Trader (Taker): Deposit collateral to execute long/short token orders with leverage.
- Maker: Deposit funds into the protocol pool and earn fees from placing orders opposite Taker.
=> When closing the position, the profit earned by the winning side will be taken from the losing side. Basically, it can be imagined that Perennial acts as an intermediary to “bet” for the two sides (similar to the GMX model), however, in the long term, most Traders (Taker) often have worse PnL than Makers.
Besides, similar to determining loan interest of lending platforms like Aave or Compound, fees funding rate on Perennial is calculated according to the Utilization curve model – changes depending on the need to use capital in the asset pool (the need to open many long orders means high funding rate and vice versa).
Perennial Finance Products Offered
Currently, Perennial Finance has mainnet version V1 with 3 products for trading including ETH-long, ETH-short and MILLI-SQUEETH long (Opyn).
In the future, Perennial will focus on increasing the cap of the asset pool as well as the number of users, along with expanding cooperation with other platforms to increase the number of trading products on dApp.
Core Team
Currently, the core team of the project is still anonymous, but I have found information about the Perennial Finance community admin Jacob Used to work at Polychain Capital.
Investor
In early 2022, Perennial Finance raised $12M in a Seed round led by Polychain Capital and Variantswith the participation of famous funds such as Coinbase VenturesArchetype, Robot Ventures.
Along with that, this capital round also has the participation of angel investors from famous projects in the Crypto market such as: Zubin Koticha & Alexis Gauba (Cofounders of Opyn), Sunny Aggarwal (Founder of Osmosis), Clinton Bembry & Scott Lewis (Cofounders of Slingshot), Pete Kim (Coinbase Wallet & USDC),…
Tokenomics
Updating…
Exchanges
Updating…
Information Channel of Perennial Finance
- Website: https://perennial.finance/
- Twitter: https://twitter.com/perenniallabs
- Medium: https://medium.com/perennial-protocol
- Discord: https://discord.com/invite/n6ejatX5Rw
Summary
Hope this article has helped you understand more What is Perennial Finance? Currently, Perps Dex is a niche that is assessed to have great growth potential in the near future, especially after the breakdown of trust with CEX exchanges at the end of 2022. Besides names like dYdX, GMX or Perps, currently There are many new projects, especially on the Arbitrum ecosystem, with heavy investment, making the market share race increasingly fierce.
With Perennial Finance, despite raising large capital and the support of many experts from famous DeFi platforms, the speed of development and communication is a bit slow compared to other projects in the same system such as Vertex and Rage Trade. , Vela,… However, that cannot tell the race results, we will continue to monitor in the near future.