Tokenomics Hub

Perpetual

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💡 Perpetual offers a perpetuals and leverage DEX that allows for composability

Type:

DeFi

Token Strength

- $PERP governs the DAO's treasury. - Perpetual also implemented vePERP to protect governance from sybil attacks and incentivize HODLers. - vePERP's gauges account for both the amount locked and locked period, which grants extra voting power to long-term HODLers. - vePERP currently allows users to earn referral fees and part of the protocols' fees
- governance - staking rewards - benefit from the protocol’s growth (i.e., speculation)
- protocol fees (flat 0.1% trading fee), which accrue to LPs and to stakeholders (up to $25K distributed weekly) - Perpetual will also implement an USDC yield switch, where the protocol will distribute 10% of fees to vePERP holders - the USDC fee switch will be implemented once the insurance fund reaches 10% of the 30-day open interest across all markets
- self-custody - robust financial products - market making - composability (other Dapps can build on top of Perpetual DEX)
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Our Take

  • flat fee structure disincentivizes larger trades and limits growth
  • Most of the supply not in circulation will become DAO's funds, making governance attractive
  • vePERP should incentivize HODLing and could become a demand driver
  • the USDC yield switch will improve yield quality

Deep Dive

Supply breakdown

Resources