Delphi Daily

Perpetual Protocol, previously Strike Protocol, has plans to list their $PERP token soon. Since writing about Perpetual Protocol in May, its name isn’t the only thing that has changed. Let’s break down the current design. 


  • Perpetual Protocol is a decentralized futures AMM that support leverage
  • The first products offered are 20x leveraged perpetual swaps (ETH/USDT, BTC/USDT, LINK/USDT)
  • Perpetual Protocol utilizes a “Virtual Automated Market Maker” (vAMM). The AMM invariant is the pricing function, but not the actual representation of assets. Perpetual Protocol uses Uniswap’s x*y=k formula. LPs do not deposit assets into an AMM and trader’s do not borrow said deposited assets at leverage. Assets are stored in a vault as collateral behind the vAMM
  • The vAMM relies on a funding rate (based on FTX’s perps) that adjusts based on the balance between the ratio of open long and short positions (uses Chainlink for the index price feed)
  • Liquidators (keepers) are needed to liquidate positions that do not meet minimum collateralization requirements
  • An insurance fund and a staking pool provide a backstop to the protocol to pay out losses (Tranche 1 = Insurance fund and tranche 2 = $PERP inflation)
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