Perpetual Protocol

Halal Rating :
Questionable
Last Price $0.99 Last updated:
Rank 604
1D Change 3.96 %
Market Cap $65.3m
Circulating supply 66,002,157
Maximum supply None

Crypto Overview

Categories
  • Decentralized Exchange (DEX) Token
  • DeFi
  • Derivatives
  • Scaling
  • AMM
  • Three Arrows Capital Portfolio
  • CMS Holdings Portfolio
  • Alameda Research Portfolio
  • Multicoin Capital Portfolio
  • Arbitrum Ecosystem
  • Optimism Ecosystem

Overview

Perpetual Protocol is a decentralized perpetual futures exchange built on Ethereum and Optimism. It allows users to trade cryptocurrencies with up to 10x leverage using virtual automated market makers (vAMMs).

Intended Utility

The PERP token serves as the protocol's governance token, allowing holders to vote on protocol changes and receive a share of trading fees. The protocol aims to provide decentralized derivatives trading without traditional order books.

Actual Utility & Usage

The protocol has seen significant adoption with over $1 billion in cumulative trading volume. It is actively used for leverage trading and derivatives speculation. The development team remains active with regular updates and improvements to the protocol.

Token Distribution & Governance

Initial token distribution: 30% to team and advisors (with 3-year vesting), 25% to ecosystem fund, 25% to community rewards, 20% to investors. The vesting schedule and lock-up periods appear reasonable and designed to prevent pump-and-dump scenarios.

Technical Implementation

The protocol implements perpetual futures contracts through virtual AMMs, which inherently involves leverage and speculative trading. While the technology is innovative, the core functionality revolves around derivatives trading which presents concerns from an Islamic finance perspective.

Crypto Impact

To assign a comfort level investing in Perpetual Protocol from a halal perspective we need to determine whether it has a net positive or negative impact.

Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Perpetual Protocol.

If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.

We will review your contribution for accuracy before publication.

Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.

You only have one vote per asset so use it wisely.

You can change your vote if you change your mind.

Justification for our Halal Rating