Perpetual Protocol drew inspiration from Uniswap and Synthetix, but it differs from these decentralized exchanges as it focuses on leverage trading, short positions, and low slippage, rather than spot trading or gaining exposure to real-world assets.
To achieve these goals, Perpetual Protocol uses a virtual automated market maker (vAMM) and collateralization vault to settle trades and make complex financial instruments, such as perpetual contracts, accessible to anyone. Unlike futures contracts, which have an expiry date, perpetual contracts are permanent and do not involve the delivery of the underlying asset. Traders pay certain fees to maintain their positions in perpetual contracts.
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