Perpetual v2 protocol delivers leveraged and concentrated liquidity from market makers »CryptoNinjas
Perpetual Protocol, a decentralized cryptocurrency derivatives protocol that offers a range of perpetual contracts, unveiled Curie, version 2 of the protocol.
This upgrade allows Perpetual Protocol to generate more transaction volume through more efficient liquidity distribution. Perpetual Protocol is currently one of the leading decentralized derivative protocols with nearly 18 billion volumes since its launch last December.
By using vAMMs (virtual Automated Market Makers) to avoid order books, Perpetual Protocol draws comparisons with Uniswap. However, an important difference with vAMM is that no token trading takes place – only derivative contracts are traded.
âWith Curie, we are not only increasing the efficiency of capital for decentralized negotiation of perpetual contracts. We also allow market makers to create their own personalized trading strategies; using vAMMs to provide leveraged and concentrated liquidity. This can be done without the deep cash base required previously, and this is a significant opportunity for traders. “
– Yenwen Feng, co-founder of Perpetual Protocol
The key improvement provided by Curie will enable market makers to provide liquidity within narrow price ranges, maximizing capital efficiency using a method inspired by Uniswap v3.
Curie paves the way for considerably greater scale-up and therefore higher trading volumes. In turn, this increased volume will increase the fees collected by manufacturers and staking workers.
Perpetual Protocol will launch Curie on Arbitrum and other L2 solutions, allowing several thousand transactions to occur per second. Along with huge improvements in trading speed, Curie will support cross margin, which means traders can open multiple positions with their entire account balance as collateral.
In future updates, traders will be able to use multiple assets as collateral to open positions, unlike perpetual protocol v1 where USDC was the only collateral option available.
Curie will support Chainlink and Uniswap v3 TWAP as Oracle providers for the price of the index, meaning that if an asset has a price stream on either platform, anyone can create a perpetual market for it.
As part of Curie, Perpetual Protocol also improves security. First, Curie further decentralizes the risk to the protocol insurance fund. Curie is restructuring the way funding payments are made or received; which further stabilizes the insurance fund and secures the protocol.
Perpetual Protocol raised $ 1.8 million in funding led by Multicoin Capital, last August. Later that year, in December, they launched on the mainnet and have since facilitated over 3 million perpetual exchanges.