Qilin Protocol V2: Permissionless Perpetuals

Qilin Protocol
Published in
2 min readApr 20, 2022


Unlocking Billions in Altcoin Derivatives Market

Over two testnets and an overhaul of our protocol frontend, Qilin V2 is about to launch!

Designed to completely disrupt the existing DeFi derivatives landscape and change the way the crypto derivatives market is structured, Qilin V2 offers full decentralization and permissionlessness unparalleled by no other derivatives protocol.

  • Permissionless perpetuals market creation for any asset
  • Peer-to-pool liquidity provision that increases capital efficiency
  • Per-block funding rate that optimizes liquidity provider earnings
  • Liquidity debt that protects LP from extreme market conditions

Revolutionizing DeFi derivatives

The current decentralized derivatives market remains permissioned in several key areas:

  • Market creation: users currently can’t decide which asset gets to have a derivatives market and which asset is used as margin in that market;
  • Market making: asset holders currently are not direct participants in the derivatives market and the earnings from liquidity provision go to a select group of market makers;
  • On-chain execution of key mechanisms: mechanisms such as funding rate are executed in off-chain environments, leaving key areas of a derivatives protocol exposed to off-chain manipulation.

Qilin is now changing all that by giving full freedom and staying true to the decentralization tenets of DeFi. We have instilled decentralization in every aspect of the protocol design:

  • Funding rate: executed on-chain on a per-block basis and risk-sensitive based on LP risk exposure;
  • Oracle: full integrations with VWAP of Chainlink and TWAP of Uniswap V2, V3 and Sushiswap;
  • Marketplace access: DEX-grade accessibility with no entrance cost for all assets with smart contract address on DEX;

Qilin is also realizing the full potential of derivatives by ensuring all key ecosystem participants are provided with equal access and there is no preference for centralized identities:

  • For assets: all assets can have a perpetuals market margined in the asset through Qilin’s permissionless design
  • For liquidity providers: liquidity providers make diversified earnings on Qilin from transaction fees, funding fees, and liquidation fees with high capital efficiency;
  • For traders: traders can now trade perpetuals not just in stablecoins but also altcoins.

What’s Coming Next?

We will hold community AMAs up next to answer all the questions our community has about V2. In the meantime, we have a full pipeline packed this year for new releases such as:

  • Qilin V2 BSC launch with additional features;
  • Ecosystem expansion with DEX frontend;
  • Qilin V3 proof-of-concept and dev.

Stay tuned by connected with us on socials!

Twitter: https://twitter.com/QilinProtocol

Discord: https://discord.gg/D8SutwykDR

Telegram: https://t.me/QilinOfficial

Medium: https://medium.com/qilinprotocol



Qilin Protocol

Decentralized risk-optimizing protocol for derivatives trading.