Perpetual (PERP) is a decentralized perpetual contract protocol built on the Ethereum blockchain. It enables users to trade perpetual contracts with up to 20x leverage for various cryptocurrencies. The protocol aims to provide a secure and efficient trading experience by utilizing an automated market maker (AMM) system. Perpetual was founded by Kenny Li and is developed and maintained by Perpetual Labs. It was launched in 2019 and is named after the perpetual contracts it facilitates.
Perpetual is a decentralized perpetual contract protocol that enables users to trade various digital assets with leverage. It is built on the Ethereum blockchain and operates using the AMM (Automated Market Maker) model.
The underlying technology behind Perpetual is a combination of smart contracts and oracles. Smart contracts are self-executing contracts with predefined rules that facilitate the trading process. Oracles, on the other hand, serve as external data providers that provide real-time price feeds and other critical information required for the operation of the smart contracts.
To start trading on Perpetual, users need to deposit their desired digital assets into the protocol. These assets are then used as collateral to support leveraged trading. The leverage allows traders to amplify their potential profits or losses.
Perpetual's trading mechanics are governed by a funding rate mechanism. This mechanism ensures the contract price stays close to the underlying market price. The funding rate is a payment made between traders to balance any deviation from the underlying asset's price.
In addition, Perpetual incorporates a funding rate mechanism to provide a fair and balanced trading environment. The funding rate is calculated based on the difference between the underlying asset price and the contract price. This mechanism helps prevent market manipulation and ensures a fair market value.
Overall, Perpetual leverages blockchain technology, smart contracts, and oracles to enable decentralized trading of digital assets with leverage. It offers traders the ability to trade various assets with increased exposure while maintaining the stability and fairness of the markets.
Perpetual is a blockchain-based protocol that offers several benefits compared to its direct competitors.
One of the key benefits of Perpetual is its decentralized nature. It is built on a decentralized blockchain, which ensures transparency and eliminates the need for intermediaries. This allows users to trade and manage their assets directly, without relying on a centralized platform. This decentralization also reduces the risk of hacking or manipulation, as the protocol is governed by a network of participants.
Another advantage of Perpetual is its flexibility. It supports a wide range of financial instruments, including synthetic assets, perpetual swaps, and options. This allows users to diversify their portfolios and access various investment opportunities within the same platform.
Additionally, Perpetual offers low transaction fees. The protocol utilizes an automated market maker (AMM) model, which eliminates the need for order books and reduces trading costs. This makes it an attractive option for traders looking for cost-effective trading solutions.
Furthermore, Perpetual provides high liquidity. Through its AMM model, the protocol ensures that there is always sufficient liquidity available for users to execute their trades. This reduces slippage and enables traders to enter and exit positions seamlessly.
Compared to its direct competitors, such as centralized exchanges or other decentralized trading platforms, Perpetual stands out for its decentralized nature, flexibility, low fees, and high liquidity. These factors contribute to a more efficient and user-friendly trading experience for individuals in the blockchain space.
Perpetual is commonly used in the context of derivatives trading in the blockchain industry. Derived from perpetual contracts, it refers to a type of financial instrument that allows traders to bet on the price movements of an underlying asset without owning the asset itself.
In general, perpetual contracts offer several advantages for traders. First, they provide access to a wide range of assets, including cryptocurrencies, commodities, and traditional financial instruments. Secondly, they offer leverage, enabling traders to open larger positions than their available capital would allow. Additionally, perpetual contracts often come with low fees and high liquidity, making them attractive to active traders.
One specific use case for perpetual contracts is hedging. Hedging involves taking positions that offset the price risk of an underlying asset. For instance, a cryptocurrency miner may want to hedge their exposure to cryptocurrency price volatility by opening a short position on a perpetual contract. This way, if the price of the mined cryptocurrency drops, the miner's profits from the short position can offset the losses incurred in the mining process.
In this scenario, the perpetual contract acts as a risk-management tool, allowing market participants to mitigate the potential downside of their business operations. By actively managing their exposure to price fluctuations, individuals and businesses can better navigate the volatile nature of the blockchain industry.
It's worth noting that while perpetual contracts offer opportunities for profit, they also come with inherent risks. Traders should exercise caution and thoroughly understand the dynamics of the market before engaging in perpetual trading.
DIA's Perpetual API is a powerful tool that provides real-time price feeds for a wide range of crypto assets. These API endpoints are constructed by aggregating data from over 85 on-chain and off-chain cryptocurrency and NFT exchanges, ensuring high-quality and reliable information. Unlike other web3 data providers, DIA's API feeds are able to deliver unmatched accuracy and coverage.
DIA offers free API endpoints for developers to test, allowing them to access and experiment with the price feed data. These endpoints are available in a standardized format, easily accessible on the DIA App's asset detail pages. While these free endpoints are useful for informational purposes and testing, DIA's custom feeds offer even greater flexibility and value.
Custom API data feeds provided by DIA are tailored to the specific needs of users. Custom configurations can be made in terms of sources, methodologies, update mechanisms, and more. This means that users can request dedicated API price feeds that cater to their unique requirements. To request a custom feed, users can contact DIA via Discord or Telegram.
The use cases for DIA's API are vast and varied within the blockchain ecosystem. In the realm of DeFi, the price information from DIA's APIs can support derivatives, options and futures, lending and borrowing markets, collateralized stablecoins, synthetic asset issuance, money markets, and more. Additionally, in the NFTfi space, the API can enable peer-to-pool NFT lending and borrowing, on-chain NFT derivatives, NFT renting, NFT fractionalization, and myriad other applications.
In summary, DIA's Perpetual API offers real-time price feeds for crypto assets, sourced from a wide range of exchanges. While free API endpoints are available for testing and informational purposes, the ability to customize feeds according to specific needs provides enhanced value for users across the blockchain ecosystem, enabling a wide range of applications and use cases.
DIA's Perpetual price oracle is a smart contract that offers real-time price feeds of cryptocurrencies. This oracle is integrated with over 35 layer 1 and layer 2 networks, expanding its reach and accessibility for developers. DIA's price feeds are meticulously constructed by aggregating raw data from more than 85 on-chain and off-chain crypto and NFT exchanges. This extensive data sourcing enables DIA to provide a level of accuracy and reliability that sets it apart from other web3 data providers.
While DIA offers free demo oracles for developers to test, these are solely for testing purposes and cannot be integrated into production applications. However, DIA understands the need for customized configurations to suit specific requirements. As a result, they offer dedicated price feed oracles tailored to users' needs. These custom oracles can be personalized in terms of sources, methodologies, update mechanisms, and more. To request a custom feed, users can get in touch with DIA via Discord or Telegram.
DIA's price oracles have a wide range of use cases within the blockchain ecosystem. They can be used in various DeFi applications like derivatives, options and futures, lending and borrowing markets, collateralized stablecoins, synthetic asset issuance, and money markets. Additionally, they have potential applications in the NFTfi sector, such as peer-to-pool NFT lending and borrowing, on-chain NFT derivatives, NFT renting, and NFT fractionalization.
A blockchain oracle, in general, is an external information provider that supplies verified data from outside the blockchain to smart contracts. Oracles play a crucial role in enabling smart contracts to interact with real-world data, making them a vital component of decentralized applications.
Overall, DIA's custom oracles offer users greater flexibility and customization options, allowing them to access accurate and tailored price feed data for their specific needs.
Both DIA's PERP API and PERP Price Oracle offer a range of benefits for users in the blockchain ecosystem. One major advantage is the high level of customization available. Users can tailor each oracle and API endpoint to suit the specific needs of their decentralized applications. This includes configuring the data sources that make up the feed, applying data cleaning filters and pricing methodologies, and determining the update mechanisms and frequency for the final feed. This customization ensures that the data and oracle remain robust and resilient to market conditions and provide accurate and reliable price points.
Another significant benefit of using DIA's API and Oracle feeds is the transparency they provide. DIA's technology offers full and granular transparency across the entire data journey, allowing users to easily track and verify the accuracy and integrity of the data. Additionally, DIA provides various tracking and monitoring tools to closely monitor their oracle and API feeds, ensuring the ongoing reliability and trustworthiness of the data.
By leveraging DIA's PERP API and Price Oracle, users can access accurate and reliable price data for cryptocurrencies and NFTs. The customizable nature of these tools ensures a tailored solution for every user, while the transparency and monitoring features instill trust and confidence in the data. Whether you need global market prices or specific individual or cross-chain market data, DIA's API and Oracle feeds offer a robust and reliable solution for accessing the information you need in the blockchain ecosystem.