DEFI

Perpetual v2 Curie, the dominant player in on-chain derivatives: Incorporating leveraged liquidity from Uniswap v3

share
Perpetual v2 Curie, the dominant player in on-chain derivatives: Incorporating leveraged liquidity from Uniswap v3

Virtual market maker Perpetual Protocol PERP, originating from Taiwan, has become a leading decentralized derivatives exchange globally since its launch in December last year. After unveiling the v2 plan "Curie" on June 30 here, the price surged from $5.4 to the current $10.4, marking an increase of over 90%. Perpetual Protocol's v2 roadmap includes incorporating layer 2 solution Arbitrum, integrating centralized liquidity from Uniswap v3, and other potential innovations.

Note: Users from Taiwan are unable to access the platform directly due to IP restrictions.

Perpetual v2: Curie's Three Major Updates

It is said that the name "Curie" is a tribute to the scientist Madame Curie, who has won the Nobel Prize twice, inspiring the Perpetual Protocol team to build DeFi infrastructure. The main updates of Perpetual v2 are as follows:

  • Improving user experience through Layer 2 solution Arbitrum: The most intuitive change will be the speed and cost-effectiveness. Additionally, the team will introduce more cross-margin collateral management and support for various types of collateral.
  • Integrating Uniswap v3 centralized liquidity: Curie will provide efficient centralized liquidity for perpetual contracts through Uniswap v3. For Makers, Perpetual's virtual AMM automated market maker can mint virtual tokens and provide liquidity to Uniswap v3 pools; for Traders, these virtual tokens can be traded through Uniswap pools.
  • Creating permissionless markets: Curie allows users to create derivative markets for any asset using Uniswap's TWAP time-weighted average price algorithm and Chainlink's price oracle.

In addition, Perpetual Protocol plans to update the design of fee revenue to bring more income to Makers.

Leveraged Liquidity + v3 Range Setting

The aforementioned updates "Uniswap v3 centralized liquidity + virtual tokens V-tokens" seem to provide users with more flexible and profitable strategy settings.

Perpetual Protocol acts as a Clearing House, where users can deposit USDC and synthesize up to 10 times the virtual tokens V-tokens. For example, if 1000 USDC is deposited, up to 1000 vUSDC can be generated.

For Makers, these leveraged virtual assets can access liquidity from Uniswap v3 with price range settings, such as vUSDC/vETH. They can earn fees more flexibly within custom price ranges, while leveraging profits in directional trading.

As the completion of "Curie" approaches, the aforementioned maker strategies seem to be a top priority, along with liquidity mining settings.