PERP Token Distribution

Perpetual Protocol
Aug 25, 2020 · 8 min read
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[⚠️ Update] Due to high gas fees, we deferred our mainnet launch and push back the Balancer LBP for 2 days. More here:

Summary

  • PERP tokens allow community members to engage in governance and staking for the Perpetual Protocol.
  • Liquidity mining and Balancer LBP are the recommended ways to get PERP tokens in order to participate in governance or staking.
  • 7.5M PERP tokens will be available on Balancer LBP around Sep 9, 2020, at 6:00 am UTC.
  • 🚨 Please note that Balancer LBP is not a regular Balancer Pool. The starting price will be very high to disincentivize front running and price speculation. We understand the desire to obtain PERP tokens to participate in governance and staking, but trying to rush into the pool will not have any benefits. If you’re interested in getting PERP tokens from Balancer, we suggest understanding the Balancer LBP first and acquiring them after a few hours 🚨.
  • Share questions or concerns in our Discord, Telegram, or Twitter communities and we’ll do our best to address them quickly.
  • Perpetual Protocol team members will never message you first for any reason.

After several months of hard work, Perpetual Protocol is excited to announce that the community can participate in governance using PERP tokens, which will be available immediately following the mainnet launch. This post explains the purpose of PERP tokens, how they will be available to the public, and how to obtain PERP tokens if you’re interested in participating in governance or staking.

About Perpetual Protocol

Perpetual Protocol is a decentralized perpetual contract trading protocol that allows up to 20X leverage on long and short positions on virtually any asset. Perpetual Protocol is powered by a novel Virtual Automated Market Maker (vAMM), the first of its kind, and a built-in, protocol-wide staking pool, which provides a backstop for each virtual market.

Similar to other AMMs (e.g., Uniswap), traders can trade with Perpetual Protocol’s Virtual AMM directly without the need for counterparties; however, Perpetual Protocol is different insofar as it separates price discovery from settlement in order to provide up to 20X leverage to traders. The vAMM also provides on-chain liquidity with predictable pricing, which is set by constant product curves. Perpetual Protocol’s vAMM is market neutral and fully collateralized. To learn more about how vAMMs work, please read: A Deep Dive into our Virtual AMM (vAMM).

Key features of Perpetual Protocol include:

  • 20x Leverage On-Chain Perpetual Contract
    Traders can trade with up to 20x leverage long or short, enjoy transparent fees, and 24/7 guaranteed liquidity.
  • Go Long or Short on Any Asset
    Virtually any asset can be supported via a perpetual contract on Perpetual Protocol. Whether it’s gold, fiat, BTC, BCH, ETH, ERC-20s, XRP, EOS, LTC, ZEC, XMR, or something else, Perpetual Protocol can support it all. All that Perpetual Protocol requires is a price feed for the underlying asset from a reliable oracle.
  • Lower Slippage than Other AMMs
    Traders on constant product (x*y=k) market makers like Uniswap suffer higher slippage than traders on centralized exchanges (CEXs) because k is capped by the liquidity provided. A vAMM can set K algorithmically to provide lower slippage to traders.

Testnet Launch and Trading Competition Traction

We hosted our first trading competition on the Ropsten testnet from 2020/7/28 to 8/11. Early engagement was strong. Here is the summary of the most notable aspects:

  • Over 364 people requested a USDT airdrop, and 265 out of them made at least one trade.
  • Traders opened positions worth $128.8M USDT (testnet) throughout the competition.
  • The average position size was 179.41 ETH/USDT, and the median position was 150 ETH/USDT.
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Roadmap

While the protocol is technically complete, the community is currently waiting for the audit to be completed. After the audit is complete and all findings have been addressed, Perpetual Protocol will launch — hopefully no later than September.

Litepaper

The Perpetual Protocol Litepaper covers most of the topics on how Perpetual Protocol works.

PERP Tokens

PERP token is Perpetual Protocol’s ERC-20 native token. It has two functions:

  1. Governance
    Once PERP token holders have staked their tokens, they can then use their staked PERP tokens to vote on or propose new ideas that can be used to improve the Perpetual Protocol. Before the on-chain governance voting platform is ready for PERP token holders, core protocol contributors will guide critical decisions. We think it’s important to keep governance nimble in the early days of the Perpetual Protocol.
    You can learn more about the governance plan here.
  2. Staking
    PERP holders can lock-up, or “stake,” their PERP for a fixed amount of time to the Staking Pool. In return, stakers are rewarded with staking rewards.
    You can learn more about how staking works here.

PERP Distribution

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  • 7,500,000 PERP tokens: Balancer LBP.
  • 36,000,000 PERP tokens: Team and advisors.
  • 6,250,000 PERP tokens: Binance Labs, invested in the development of the Perpetual Protocol approximately 2 years ago.
  • 22,500,000 PERP tokens: Strategic investors to the extent they fully exercise their rights to purchase PERP tokens.
  • 77,750,000 PERP tokens: Ecosystem and rewards, which will benefit traders, stakers, and developers who participate in the Perpetual Protocol ecosystem. As Perpetual Protocol transits to community governance, the Perpetual Protocol community will make all decisions regarding the distribution of ecosystem rewards.

The total PERP token supply will be 150,000,000 and future governance can decide to mint more tokens.

PERP Release Schedule (Exclude Ecosystem and Rewards)

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Above is the overall PERP token release schedule without Ecosystem and Rewards.

  • Balancer LBP: No lockup.
  • Team and advisors: Team begins vesting its tokens 6 months after the mainnet launches, and quarterly for the following 30 months.
  • Seed and strategic investors: Seed and strategic investors begin vesting their tokens right after the Balancer LBP finished(25%), then quarterly for the next 12 months.
  • Ecosystem and Rewards: Before the transition to community governance, 10% of these PERP tokens are unlocked. After the community governance transition, all of them are unlocked.

For more info on PERP tokens, please read the PERP Token documentation.

Liquidity Mining

The best way to get PERP tokens is through liquidity mining. Liquidity mining will start from late September and all the transaction fees will have various rebates when you trade on Perpetual Protocol. Please see Liquidity Mining for more information.

Balancer Liquidity Bootstrapping Pool

🚨 IMPORTANT! PLEASE READ BELOW. DO NOT PURCHASE PERP TOKENS TOO EARLY OR FOR ANY REASON OTHER THAN GOVERNANCE OR STAKING, OR YOU WILL GET REKT 🚨

Another way to acquire PERP tokens is through the Balancer Pools. 7.5M of PERP Tokens will be distributed on a Balancer Liquidity Bootstrapping Pool (LBP) and a Balancer Shared Pool (BSP). Here is a post detailing how Balancer LBP works and github.

The Balancer LBP will be live for 3 days only and is designed to prevent front-running and speculation. It will start at a high price then go down quickly as the weights of the pool change. This prevents people from front-running other participants and speculating on PERP tokens rather than using them for governance and staking. After the 3 day period, the Balancer LBP will be stopped and part of the proceeds will be used to seed a BSP open to everyone and integrated with Perpetual Protocol’s backstop system.

We detail the weight changes and related parameters in a Google Sheet. Please take a look if interested.

Below is a chart showing the spot price movement when there are no buy/sell orders on the Balancer LBP. As the chart illustrates, the Balancer LBP has a constant selling pressure to prevent front-running and price speculation.

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Balancer Liquidity Bootstrapping Pool Execution Plan

Phase 1:

  1. Create a PERP/USDC Balancer LBP with 7,500,000 PERP tokens and 1,333,333 USDC.
  2. The Balancer LBP starts from block: 10,825,600 and ends at block: 10,846,450 (approximately 3 days). The start time is around Sep 9, 2020, at 6:00 am UTC.
  3. The weights will change gradually from the start (PERP:USDC = 90:10) to the end (PERP:USDC = 30:70) during that period.
  4. At the end of the Balancer LBP, the Balancer LBP will cease and Phase 2 will begin.

Phase 2:

  1. Using the last price and part of the proceeds from LBP, a new PERP/cUSDT BSP will be seeded.
  2. Incentivizing LPs to provide liquidity to the BSP, they will receive part of the Perpetual Protocol’s inflation rewards in the beginning. Details will be announced soon.

There will be a step-by-step guide on how to acquire PERP tokens from Balancer LBP soon.

Next Steps

We’d like to thank our community for sharing their feedback and opinions regarding the Perpetual Protocol. We are excited to see how the Balancer LBP will result in a wider cohort of governors as well as stakers for the Perpetual Protocol.

Please follow Perpetual Protocol’s official channels for all communications relevant to the mainnet launch, and beware of false or misleading deposit addresses.

⚠️ Any Perpetual Protocol team members will never PM you for any information.

Feel free to discuss anything with us on our Discord, Telegram, or pm us on Twitter!!

Legal Note

PERP TOKENS ARE NOT INTENDED TO BE PURCHASED AS INVESTMENTS, NOR SHOULD THEY BE CONSTRUED AS SUCH. RATHER, PERPETUAL PROTOCOL TOKENS ARE A MEANS OF PARTICIPATING IN A COMMUNITY-OPERATED AND -GOVERNED NETWORK PROTOCOL. THE MANNER IN WHICH THE PERP TOKEN WILL BE DISTRIBUTED LIKELY WILL RESULT IN IT LOSING VALUE WITH TIME. THUS, ALTHOUGH THE PERP TOKENS ARE EXPECTED TO RETAIN VALUE IN THAT THEY ALLOW FOR GOVERNING THE PERPETUAL PROTOCOL AND STAKING IN IT, THE INFLATIONARY NATURE OF THE PERP TOKEN LIKELY WILL MAKE OWNING IT FOR INVESTMENT PURPOSES A POOR DECISION.

NONE OF THE INFORMATION PROVIDED HEREIN CONSTITUTES ADVICE OF ANY SORT, INCLUDING TAX, LEGAL, FINANCIAL OR ANY OTHER ADVICE, NOR DOES IT CONSTITUTE A RECOMMENDATION TO PURCHASE OR USE ANY PRODUCT OR SERVICE.

DO NOT PURCHASE PERP IF YOU ARE NOT FAMILIAR WITH CRYPTOGRAPHIC TOKENS AND BLOCKCHAIN-BASED SOFTWARE SYSTEMS.

Get involved with our communities

🌎 https://perp.fi/

📚 https://docs.perp.fi/

#️⃣ https://twitter.com/perpprotocol

✈️ https://t.me/perpetualprotocol

📱 https://discord.gg/mYKKRTn

Perpetual Protocol

Decentralized Perpetual Contract for Every Asset

Thanks to Shao

Perpetual Protocol

Written by

Decentralized perpetual contract for every asset

Perpetual Protocol

Perpetual Protocol is a decentralized perpetual contract protocol for every asset, made possible by a Virtual Automated Market Maker (vAMM).

Perpetual Protocol

Written by

Decentralized perpetual contract for every asset

Perpetual Protocol

Perpetual Protocol is a decentralized perpetual contract protocol for every asset, made possible by a Virtual Automated Market Maker (vAMM).

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