Perpetual Protocol – a rising DeFi derivatives protocol –  has closed a $1.8M seed round alongside the announcement of an upcoming distribution of its PERP governance token.

The closing of the round comes with support from leading DeFi funds including Three Arrows Captial, Multicoin Capital and Mechanism Captial in tandem with heavyweights like Binance Labs and Almeda Research.

Underpinning the announcement was the unveiling of the PERP token distribution – a carefully crafted model set to discourage speculators and build long-term supporters.

7.5 million PERP tokens will be distributed via a Balancer Liquidity Bootstrapping Pool (LBP), beginning September 7 at 6:00AM UTC.

The Balancer LBP – different from a regular Balancer liquidity pool – will list at a high starting price in an effort to encourage fair distribution and reduce volatility from early speculation.

PERP Token Distribution

PERP holders will be able to stake their tokens to vote on or propose new ideas within the protocol.

This governance system, however, is still some time away – the team and key stakeholders will be guiding major decisions in the meantime.

Users will also be able to stake PERP for fixed durations to collect rewards. These will include more PERP tokens, as well as a proportion of trading fees generated by the platform.

The 7.5M PERP tokens in the Balancer LBP only represent a small percentage (5%) of the total 150M token supply; almost 78M will be allocated to the ecosystem and rewards, 36M to the team and advisors, 22.5M for strategic investors and around 6M already allocated to seed investors.

Aside from the Balancer pool tokens, all other allocations come with lock-up periods. This includes:

  • 6 to 30 months after mainnet launch for team tokens
  • Quarterly releases for private investors tokens
  • 90% of the ecosystem and reward tokens to be unlocked after the platform’s transition to becoming a DAO.

What is Perpetual Protocol?

Perpetual Protocol is a DeFi platform which enables users to trade almost any asset at up to 20x leverage. We formerly covered them before their rebrand when they were known as Strike Protocol.

The protocol is powered by a market-neutral liquidity system, which allows it to create markets for contracts based on any type of asset. This fully-collateralized “virtual automated market maker” (vAMM) is the first of its kind in DeFi.

Balancer LBPs

Balancer LBPs are a type of “smart” Balancer pool, designed to fairly distribute platform tokens while building liquidity.

New projects can program an LBP smart contract to distribute the token in a way they see fit, controlling the weight of each pool component.

The launch of PERP comes as a growing trend for DeFi projects to carve out market share in the rapidly growing AMM sector. Best highlighted by 1inch’s new Mooniswap proudct, we’ll soon see other AMM’s (like Hakka Blackhole swap) offering very specific benefits and tradeoffs regarding trader appetite.

The launch of PERP is set to give Perpetual Protocol a strong kickstart leading into what very well could become the generalized DeFi margin platform rivaling leaders like dYdX.

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