PERP Token Deep Dive: How do Perpetual Protocols Reshape Derivatives Trading?

What is PERP? A Beginner’s Guide to Perpetual Protocol

Perpetual Protocol is a decentralized derivatives trading platform focused on perpetual contracts. In simple terms, PERP is the governance token issued by this platform, used to incentivize and manage the entire ecosystem. As an innovative DeFi project, it allows users to leverage bets on the future prices of crypto assets without going through traditional exchanges.

Currently, the PERP token price is $0.09, down 1.05% in 24 hours, a 9.90% decrease over the past 7 days, with a circulating market cap of $6.49M and a daily trading volume of $209.71K. Although recent adjustments have occurred, the technological innovation of this project is worth paying attention to.

Technical Advantages: Why Choose Perpetual Protocol?

Perpetual Protocol runs on the xDai layer-2 network, offering clear advantages over the Ethereum mainnet. The most core feature is zero gas fees—users do not need to pay Gas fees for transactions, which is a huge benefit for frequent traders.

The platform uses USDC as the unified settlement currency for all trades, and all collateral is stored in the form of USDC. Users can transfer funds directly from compatible wallets like Metamask without additional setup, providing a very convenient experience. Transaction speeds are also much faster than on the mainnet, offering a professional-grade trading environment.

Project Background and Governance Mechanism

Perpetual Protocol was founded by Yenwen Feng and Shao-Kang Lee in 2018, with both founders having extensive experience in the crypto field. They aim to showcase the application potential of derivatives in DeFi infrastructure through this platform.

The PERP token is the platform’s governance tool, following the ERC-20 standard. Token holders can participate in voting proportionally based on their holdings, promoting decentralized decision-making. Meanwhile, the platform incentivizes user participation through trading fee sharing and liquidity mining, constructing a relatively complete economic incentive system.

Investment Considerations

While Perpetual Protocol has notable innovations in technology, the recent performance of the PERP token has been weak, and the market still needs to observe its development trajectory. Investors should pay attention to metrics such as platform user growth, trading volume changes, and ecosystem development.