Perpetual Protocol
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What is Perpetual Protocol?
Getting Started
How it Works
vAMM
Leverage
Liquidation
Margin ratio
Trading
Funding Payments
PERP Token
Limit Orders
Staking
Perpetual Contract Specs
Protocol Marketing
Governance
🖥️ Dashboards
FAQs
ℹ️ General FAQ
📊
Basic Trading FAQ
😷
Troubleshooting FAQ
🖥️ Trading Interface FAQ
Tutorials
📈
Start trading on perp.exchange
💱
Transfer Funds to / from xDai
🔄
Open & Close Positions
🧮
Add & Reduce Margin
🧑‍🔬 Trade on our testnet
☎️ Get a Margin Call
Development Resources
💾
Smart Contract JavaScript Development Guide
📔
Smart Contract and Wallet Addresses
🎒
Developer FAQ
Library
Litepaper
Whitepaper
Roadmap
Glossary
Audit Reports
Terms of Service
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vAMM

vAMM

Our exchange model is very different from other exchanges, including AMM based exchanges. Key points to begin with:
    Perpetual Protocol does not use liquidity or liquidity providers.
    Perpetual Protocol is 100% AMM based; there is no order book.
    The on-chain price reflects trades on Perpetual Protocol - the price only moves when positions are opened or closed.
Traders use collateral (USDC) to open long or short positions in a given asset. Every time a trade is made, the vAMM calculates the entry or exit price in the same way prices are calculated on Uniswap or other AMM style exchanges.
An important difference with the vAMM is that no swap is occurring. Unlike Uniswap, for example, where traders arrive with asset A and leave with asset B, on Perpetual Protocol traders always arrive with USDC, and leave with USDC. This allows the protocol to operate without ever having held the underlying asset.
Getting Started - Previous
How it Works
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Leverage
Last modified 5mo ago
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