Perpetual Protocol is like Bitmex meets Uniswap. It’s a decentralized perpetual contract protocol for every asset, made possible by a novel Virtual Automated Market Maker (vAMM) design. More details
PERP tokens allow community members to engage in governance and staking for the Perpetual Protocol. More details
The main options to get PERP tokens now is either through liquidity mining or Balancer Liquidity Bootstrapping Pool (LBP). We also have a trading competition coming in a few weeks.
For more details:
7.5M PERP tokens will be available on Balancer LBP around Sep 9, 2020, at 6:00 am UTC, and the Balancer LBP will be live for approximately 3 days. Check here to know more.
The Balancer LBP is like a usual Balancer Pool with a very high start price and heavy selling pressure. If you go in too early like the first few hours, you have to take more downward price pressure and might get rekt. The high price at the beginning is to prevent front-runners from grabbing all the profit. Balancer has a detailed blog post about how it works.
Because of the dynamic weight change provide by the Balancer LBP, the weight between the two pools (PERP:USDC) will change from 90:10 to 30:70. Every time the weight changes, the price will be less than the previous price. It creates a downward pressure for the price during the Blanacer LBP period.
The trading experience is just like the usual Balancer Pool. If there are more people buying PERP, the price goes up. Otherwise, the price goes down. The only difference is the Balancer LBP makes it harder for the price to go up.
We will deploy PERP tokens on Balancer in two phases:
We will create a PERP/USDC Balancer LBP with 7,500,000 PERP tokens and 1,333,333 USDC.
The Balancer LBP starts from block: 10,825,600 and ends at block: 10,846,450 (approximately 3 days). The start time is around Sep 9, 2020, at 6:00 am UTC.
The weights will change gradually from the start (PERP:USDC = 90:10) to the end (PERP:USDC = 30:70) during that period.
At the end of the Balancer LBP, the Balancer LBP will cease and Phase 2 will begin
Using the last price and part of the proceeds from LBP, a new PERP/cUSDT BSP will be seeded.
Incentivizing LPs to provide liquidity to the BSP, they will receive part of the Perpetual Protocol’s inflation rewards in the beginning. Details will be announced soon.
There will be a step-by-step guide on how to acquire PERP tokens from Balancer LBP soon.
Here is a step by step example that shows how many PERP tokens will Alice and Bob get when they swap USDC at different weights of the pool.
PERP in Pool
USDC in Pool
Balancer LBP starts
Alice swap 200,000 USDC for PERP
Bob swap 100,000 USDC for PERP
As you can see, if there are fewer buying orders, the price will move downward by time, especially at the beginning. If there are enough buying orders around the same time, the price will go up (Alice's case). But once there are fewer buying orders after, the price will move downward by time again.
For more details, you can check this gsheet for reference. Please remember the chart in the first tab is the price chart without any buy/sell orders.
Yes, that's what we believe. I think the most obvious reason to use a Balancer LBP is that it's very hard for the bots and front-runners to take the profit in the first block.
The 2nd reason is by having weight changing during a period of time and let the price goes down, the prices are more evenly distributed than just putting the tokens on Uniswap. Comparing below two charts:
We use the same amount of PERP and USDC tokens in these two charts and the same buying patterns. By using the Balancer LBP, token prices are more evenly distributed and the ending price is lower.
We’ll release a tutorial before the pool is live, so please stay tuned.
It's impossible to grab all the allocations on a Balancer Pool by design. The more tokens the whale gets, the larger slippage they have to deal with.
In order to prevent people from front-running other participants and speculating on PERP tokens rather than using them for governance and staking, PERP tokens will start at a high price then go down quickly as the weights of the pool change. It helps prevent bots and front-runners.
🚨DO NOT PURCHASE PERP TOKENS TOO EARLY OR FOR ANY REASON OTHER THAN GOVERNANCE OR STAKING, OR YOU WILL GET REKT!🚨
Participants should not purchase PERP tokens when LBP starts, there will be a very large slippage to be dealt with.
If you want to submit a very large order, the best strategy for you is to divide the order into small chunks and spread them out over 3 days to average down the price.
Otherwise, you can just pick the price you want to enter and wait for some time. Don't come in in the first few hours. We have a google sheet in which you can make a copy and run some simulation on it.
Yes, any token supported on Balancer can be used to exchange for our token (but usually, the exchange rate will be worse due to multiple hops between different pools on Balancer).
It’s possible that during the three-day existence of the Balancer’s Liquidity Bootstrapping Pool (LBP), someone who has acquired our token and created a pool for people to buy it. But we expect there will be lots of scam pools on Uniswap. Therefore, it’s recommended only to get PERP from our LBP on Balancer.
Metamask, Portis, or any wallet that can be connected to a desktop Dapp through wallet connect should be fine. You can test if your wallet is supported now by going to Balancer’s website and swapping a token to another. https://balancer.exchange
The goal of the Perpetual Protocol is to build a 1) permissionless protocol with 2) price discovery provided by a vAMM. We think it’s not aligned with our goal to have a whitelist and a fixed price.
Our team members are also very decentralized. Team members and advisors are from Europe, America, and Asia, core members are based in Taiwan, all have solid working experience in the blockchain industry like crypto exchanges, payment solution services, etc.
We have raised $1.8M in a strategic round led by Multicoin Capital with participation from Zee Prime Capital, Three Arrows Capital, CMS Holdings, LLC., and Alameda Research who is strategically partnered with FTX.