Perennial｜Derivatives Optimized for DeFi

What is Perennial?

Perennial is a platform for efficiently providing derivatives in cryptocurrency trading. Specifically, it allows the creation of "two-way trading markets" based on specific price feeds (e.g., Bitcoin price).

Perennial functions as a peer-to-pool AMM (Automated Market Maker), utilizing liquidity pools to always offer the opposite side of a trade when a taker (a user wishing to trade) takes a position. The trading price is determined based on the accurate market price provided by an oracle.

Furthermore, a funding rate, which fluctuates depending on the utilization of the liquidity pool, is set, enhancing the pool's sustainability and capital efficiency. This mechanism allows for efficient exposure with less capital, making it a more accessible design for a wider range of users.

Features of Perennial

Perennial offers a simple and scalable trading model.

• Achieves no order book, no price slippage, and permissionless leverage.
• Enables DeFi-specific markets like Squeeth and position designs integrable with other protocols.
• Plans to include essential features for professional users.

Perennial is not a standalone protocol, but rather provides a foundation for building customizable derivatives markets. It offers a flexible trading experience tailored to all users by providing efficient and powerful features for advanced users and simplified tools for retail users.

Provides a mechanism that developers can easily integrate and build upon. Reduces the complexity and risks of traditional derivatives through no slippage, MEV resistance, and a highly efficient trading model. As the next generation of finance is built on derivatives, Perennial plays a central role.

Overview of the Mechanism

Perennial creates "two-way markets" for efficiently trading exposure to a benchmark price feed. This mechanism functions as a peer-to-pool derivatives AMM and has the following characteristics:

• Takers (traders) deposit collateral to utilize leverage and take positions based on various price feeds.
• Makers (liquidity providers) provide capital to the protocol and earn fees by taking the opposite side of takers' positions.
• Pricing is based on oracle prices, and a funding rate that fluctuates depending on the liquidity pool utilization is applied.

Traders and LPs continuously settle, with the losing side paying the profitable side. This design realizes simple and efficient derivatives trading in DeFi.

Strengths of Perennial

Traders have access to deep liquidity pools, while liquidity providers (makers) can maintain capital efficiency and market-neutral exposure.

Perennial settles trades in $USD rather than crypto assets, making it easy for users to understand profit and loss and providing high compatibility with traditional financial markets. This cash settlement system is particularly attractive to institutional investors.

Perennial employs a highly efficient protocol in mechanism design and capital efficiency. This minimizes fees for both takers and makers, significantly reducing trading costs.

Perennial offers a mechanism that allows liquidity providers (LPs) to provide capital with up to 50x leverage. LPs can freely customize their risk exposure and hedging strategies, catering to both professional and retail users.

Perennial is designed as a composable primitive with low fees, fully on-chain, and easy integration. This feature allows developers to flexibly incorporate it into their projects.

Market creation, integration, and composability are all permissionless, enabling easy launch of innovative projects. This is expected to lead to rapid ecosystem growth.

Vision and Future of Perennial

Perennial aims to revolutionize the DeFi derivatives market. In the future, Perennial plans to undergo the following evolution:

The emergence of diverse derivatives markets, including exotic markets, will provide more choices for traders.

The composable design enables seamless collaboration with other DeFi protocols, contributing to the revitalization of the entire DeFi space.

The efficient market mechanism and low fee structure make it an attractive project for institutional investors conducting large-scale transactions.

Simplified LP options will allow retail investors to easily participate in the derivatives market.

Perennial's future is very bright, and it is expected to establish itself as a key infrastructure in the DeFi market.

Perennial project details are available here

Perennial raised $12 million in its Seed round in December 2022 from Polychain Capital, Variant, Coinbase Ventures, and others.

Perennial Petals

Perennial aims to create efficient perpetual markets in the DeFi market and has introduced the Petals Program to reward community members who contribute to this effort. This program offers rewards to early users, loyal users, and new participants, celebrating the launch of Perennial's Intents.

Petals can be earned in several ways:

• Trading on Perennial: Earn Petals with each trade made on the Perennial platform (app.perennial.finance).
• Retroactive Petal Distribution: Loyal users who have previously traded or provided liquidity on Perennial will receive Petals retroactively based on their past activity.
• Participation on Partner Platforms: You can also earn Petals by trading on other frontends that utilize Perennial's technology.
• Petal Quests (Community Challenges): Participate in community-led challenges (Petal Quests) to expand the Perennial ecosystem and earn additional rewards.

Tracking your Petals is easy. Simply connect your wallet to the Petals tab on the Perennial platform to see all your earned Petals and the status of active rewards and boosts.

Earning Petals is not just about rewards; it's also a way to demonstrate your engagement and contribution to Perennial. Accumulating Petals reflects your standing within the Perennial protocol and increases your participation in the ecosystem.

Perennial's Petals program aims to encourage long-term contribution and growth to the project while rewarding users.

Perennial airdrop details are available here

Summary of Steps

1. Connect your wallet on the website.
2. Trade to earn rewards.
3. Provide liquidity to earn rewards.
4. Trade on partner platforms using Perennial's frontend to earn rewards.
5. Participate in Petal Quests in the Discord group to earn rewards.

Detailed Steps with Images

1. Connect your wallet on the website.

2. Trade to earn rewards.

3. Provide liquidity to earn rewards.

4. Trade on partner platforms using Perennial's frontend to earn rewards.

5. Participate in Petal Quests in the Discord group to earn rewards.