PerpDEX

Getting to know

1. Introduction

PerpDEX is a perpetual futures decentralized exchange (DEX) that brings you Perpetual Futures contracts to trade with ease, security, and reliability on Ethereum, zkSync and Astar Network. PerpDEX offers a number of features and financial tools for both makers and takers. The overall goal of the PerpDEX is to allow anyone to create or trade perpetual futures contracts with ease.

Salient Features

• Long/short on any crypto asset

• Trade with leverage of up to 10x

• Transaction mining for passive income

• Leveraged LP for risk takers

• Liquidation Free Funding

• Bankruptcy Guard for protocol

• Multichain support

• EVM compatible

• Lossless AMM

2. Comparison

Following is a comparison table of PerpDEX with various other protocols that provide Perpetual Futures Contract trading.

	PerpDEX	dYdX	MCDEX	Mango Markets	Perpetual Protocol V2
Open-source	✅	❌	✅	✅	✅
Liquidation Free	✅	❌	❌	❌	❌
Composability	✅	❌	❌	✅	❌
Funding Currency	Base	Quote	Quote	Quote	Quote
Model	Lossless AMM	CLOB	AMM	CLOB	AMM
Audited	✅	❌	✅	❌	❌

3. Participants

PerpDEX is based on the AMM model. There are two major participants involved in PerpDEX to function.

3.1. Traders

Traders are the most frequent and central participants of the PerpDEX. They are always the taker of the market. All of the traders trading perpetual futures contracts on PerpDEX are basically trading against AMM of PerpDEX. No trader can trade with any other trader. Traders have to deposit collateral before starting trading perpetual futures. For every trade, traders have to pay the transaction fee for that trade, and additionally, they also need to pay or receive funding payments according to the funding rate. PerpDEX only supports cross-margin trades for perpetual futures.

3.2. Liquidity Providers

Liquidity providers are the makers of the PerpDEX. They provide liquidity to PerpDEX AMM which acts as an opposing party to any trade happening on PerpDEX. Liquidity providers earn profits and rewards from various mechanisms. Liquidity providers are eligible to earn transaction fees, and funding payments. Just like a leveraged trade, makers also take the benefit of this leverage by providing liquidity with leverage. This way, they are exposed to risk but in return also earn extra profits with each transaction and through funding payments. In order to take part as a maker to provide liquidity, one has to deposit collateral first into the PerpDEX and use that collateral to borrow some other virtual/synthetic crypto-asset i.e., vBTC, vETH, for the pool where you wish to provide liquidity and in return PerpDEX will give you LP tokens.