- Development is ongoing and currently our #1 focus. The main hold up will be audits — those take time and can't be hurried.
Will there be a new token?
- No, the original PERP token will continue to be used.
What will happen to v1?
- V1 is still running well. We will continue to maintain it for the foreseeable future.
Will v2 come with a UI update?
- Yes, v2 will have an all-new UI including a mobile-friendly responsive design
Is there a preview of the UI?
Will Perpetual Protocol fork Uniswap v3?
- No, we are building on top of Uniswap - not forking or using their code
Did Perp license Uniswap code?
- No, we are building on top - not using their code
Can I trade perpetual contracts directly on Uniswap?
- No, all trades must be made via Perpetual Protocol
Can I withdraw perpetual contract tokens from Uniswap?
- You must close your position and withdraw your collateral. It’s not possible to withdraw or transfer tokens directly from Uniswap.
What happens if Uniswap turns on protocol fees?
- We will cross that bridge when we get there! However, since Uniswap v3 is used for accounting balances of derivatives contracts, it should be simple to accommodate for a protocol fee in the clearinghouse contract. For example, if the protocol fee is 5 bps (0.05%), Uniswap will take 0.05% of the traded tokens, and the clearinghouse will mint 0.05% extra tokens to return to the trader.
Chains & rollups
What chain is Perpetual Protocol Curie (v2) on?
- We are on the Optimism rollup. We plan to launch on Arbitrum next.
Will Perpetual Protocol launch on ____?
- Our goal is to launch everywhere Uniswap v3 is present (this is critical infrastructure for Perpetual Protocol Curie).
Wasn't Perpetual v2 going to launch on Arbitrum?
- Yes, and we still plan to. Optimism has more bandwidth than Arbitrum at the time of launch. Arbitrum Nitro will greatly increase bandwidth and we plan to launch there once that is available.
Will Perpetual Protocol stay on xDai?
- V1 will remain on xDai. V2 can launch on xDai if Uniswap v3 also launches there.
Can collateral other than USDC be used?
- Initially only USDC collateral will be used. In a later release, traders will be able to use other assets in a way similar to FTX (https://help.ftx.com/hc/en-us/articles/360031149632-Non-USD-Collateral). PnL will still be paid out in USDC.
Will existing positions be automatically transferred to V2?
- No, just like Uniswap v2 vs v3, you need to open new positions on the new version of Perpetual Protocol. You can also keep trading on v1 - it will continue running for the foreseeable future.
How does shorting work in v2?
- Traders place USDC in the clearinghouse, which issues v-tokens. For shorts, the clearinghouse will issue the trader the v-token corresponding to the token they want to short (e.g. vETH). This token will then be sold for vUSDC in the Uniswap v3 pool (e.g. vUSDC/vETH pool).
How will funding work in v2?
- Funding will work as expected, with longs and shorts exchanging payments according to the ratio of mark and index prices. In v2, the maker/taker model assures there will always be an equal number of longs and shorts. Unlike v1, where the ‘maker’ (ie. clearinghouse) was static, v2 makers will deploy strategic liquidity provision, further helping to drive the price toward index.
Can I mint v-tokens, wait for the price to change without opening a position, and then burn the tokens to earn a profit?
- The protocol includes a mechanism for preventing this case.When you mint v-tokens, e.g., vETH, an equal vETH debt is also registered in the clearinghouse. Based on this ratio of vETH to vETH-debt (1:1 as long as you don't make any trades), your 'free collateral' will be zero. In order to remove collateral, you will have to provide vETH to pay off the vETH-debt. So if you put in X USDC and mint Y vETH, the only way to withdraw your full amount of USDC is to first pay back the full amount of vETH. The amount of collateral you can withdraw is determined by the ratio of vETH/vETH-debt you have. If you make some trades and earn more vETH, you can remove more collateral than you put in (profit), and vice versa.
Does v2 now mean trades need counterparties?
- Yes and no. Like on Uniswap, you’ll need makers to provide liquidity in order to trade. However, your position will not depend on these makers - even if all makers withdraw liquidity, your position can remain open. It will mean, however, that there may not be enough liquidity to close your position at a reasonable price. Keep in mind that this is an extreme case and is highly unlikely to occur.
Will I be unable to close my position if makers withdraw all liquidity?
- Makers cannot withdraw liquidity that is in positions held by traders, so you will always be able to close your position.
Can my position be closed or auto-deleveraged if there is no counterparty available?
- Your position is not affected by counterparties or makers (ie. liquidity providers) directly, however what could happen is the price impact of closing your position would be affected by liquidity being removed. E.g. if half of the liquidity is removed, the price impact of closing your position would increase, reducing your potential profit.
If I have a position as a taker, can I use that position to be a maker?
- Yes, your taker positions will be added to liquidity used when you are a maker.
Makers & liquidity
Makers vs liquidity providers
- Makers are very similar to liquidity providers - they provide liquidity for perpetual contract trading. However there are some key differences. Makers can use leverage when providing liquidity, and makers will earn/pay funding depending on market conditions.
Will makers pay exchange fees?
- No, in fact makers will earn protocol fees
Why does v2 require makers?
- Bringing makers into the system allows v2 to have much more dynamic liquidity and makes the system more responsive to market conditions thanks to the ability of makers to express themselves through a diversity of liquidity provisioning strategies. This fixes issues with v1 caused by a static liquidity model that was rigid and unable to respond to market conditions.
What happens if makers remove liquidity?
- The slippage will increase. We will work with other protocols to create LP strategy vaults that will supply sufficient liquidity with a good distribution to prevent sudden slippage increment. ?
Is there slippage for a maker during the conversion of USDC to asset tokens? Or will it be exchanged at oracle price regardless of size?
- There is no slippage when
As a maker, are there any restrictions on removing liquidity?
- No, you can add and remove liquidity any time, just like on Uniswap v3.
Do makers have to provide 2 tokens?
- Makers only need to provide USDC, which is used as collateral for minting virtual tokens used for perpetual contract trading.
How will Perpetual Protocol attract liquidity?
- We expect that providing liquidity on Perpetual Protocol will be much more rewarding than on centralized exchanges thanks to the ability to earn protocol fees. In addition, we may offer liquidity mining rewards to attract liquidity (e.g. via 3rd party LP Strategy Vaults)
Can makers get rekt due to OI imbalance in v2?
- The OI is always balanced in v2 (total long positions = total short positions)
Will there be IL risk?
- Yes, there will be IL risk just like on Uniswap v3 now
Can makers get liquidated?
- In theory, yes. However, the cool thing about Uniswap v3 is that you can place a limit order (aka range order), which prevents you from getting liquidated.
What strategies will be available to makers?
- Makers can come up with an infinite number of strategies on their own, just like regular LPs on Uniswap, or they can use 3rd party strategy providers. Partnerships with providers are in progress and in theory any provider servicing Uniswap v3 LPs can easily port their service to Perpetual Protocol.
How do makers get v-tokens like vETH etc.?
- Makers put USDC into the system, and the Perpetual Protocol contractclearinghouse mints and issues v-tokens to them (up to 10x, and possibly more if governance votes to increase the limit). V-tokens will be minted according to what token the maker wants to provide liquidity for.For example, 1000 vUSDC could be deployed as 0.25 vETH and 500 vUSDC (assuming an ETH price of $2000). These tokens are minted and placed into the Uniswap v3 pool by the clearinghouse. Makers also choose a price range for their liquidity according to the Uniswap v3 LP model, so liquidity would be provided using a single v-token if the price range is outside the currently active range.
How are v-token prices set?
- V-tokens such as vETH, vBTC etc., will be minted according to the 15-minute TWAP from the respective oracle (current planned options are Uniswap or Chainlink).