How PERI Finance Revamps Derivatives for Crypto Trading

PERI Finance uses the Polkadot network and innovations in blockchain technology to provide a fast, secure, and reliable market for synthetics and derivatives traders. Decentralized finance has grown quickly into a financial industry with over $100 billion in total value locked (TVL). While this TVL has reached enormous proportions over the last year, only a fraction of this growth has been realized by the defi derivatives market. By introducing trades with low transaction costs, high speeds, and the power of infinite liquidity, PERI Finance seeks to become the premier platform in aiding traders to reach their goals. 

Improving Defi for Traders Big and Small

Massive growth has meant massive delays in transactions and rising gas fees on the Ethereum network. While most of defi struggles against these barriers to trade, PERI Finance has moved onto the Polkadot network. This solution uses parachain technology to offer the fastest speeds and lowest cost transactions without sacrificing security.

By making this move, PERI Finance allows traders of any size to take part in the opportunities afforded by defi, whereas the high cost of gas on a congested and overused network often means the highest bidders are serviced first, and the big whales are typically the ones who thrive in this environment. With PERI Finance and parachain technology, any trader can trade at the speed of a whale.

Increasing Choice and Ease for All Traders

PERI Finance makes assets from traditional finance as well as assets from the cryptosphere available to all of its users. As mentioned before, the defi ecosystem has seen very little action in synthetics and derivatives, at most 3% of the defi market share, and PERI Finance wants to fill that void for active traders. Not only does the protocol create access to a more diversified set of assets, it makes holding and trading traditional financial assets along with crypto assets easier than ever before. 

In the world of traditional finance, it takes a lot of patience to handle commodities, cryptocurrency, and forex all at once. PERI Finance reduces the hassle of diversifying into these various assets by creating Pynths, or PERI Synthetic Assets, to make trading easier and more efficient. In the way that a stablecoin like USDC is pegged to the dollar and reflects the value of a dollar, Pynths reflect the value of whatever asset they are tied to, moving up and down with that asset. Just as you can trade millions of dollars in USDC without moving actual dollar bills or certificates, Pynths allow you to trade any underlying asset as crypto through the advancements made in blockchain technology. 

PERI: Utility and Governance Token in One

PERI, the native token of PERI Finance, can be used in several ways. One important role of the PERI token is its function in helping users create infinite liquidity. While this seems like a pipe dream, infinite liquidity is possible with PERI Finance through the staking of PERI and USDC tokens at an eight to two ratio in order to mint Pynths. As mentioned before, Pynths are the digital asset tied to any asset users which to trade, and instead of gathering these assets from liquidity providers and liquidity pools, as is often the case in defi, users are given carte blanche to define the extent of their own trading power. No longer are traders tied to the liquidity of the market.

PERI is also the governance token of the PERI Finance DAO, or Decentralized Autonomous Organization. A DAO works on one of the main principles of defi: decentralization, and through the distribution of governance tokens, users are given a say in the future of the protocol. So, not only are traders given more control of what they trade and how much they trade, they are given the chance to help improve the protocol and shape policies for the future benefit of all involved. PIPs, or PERI Improvement Proposals, are collected from the community and voted on by using PERI tokens, which are then returned after voting ends. 

Leveraging Technology, Leveraging Trades

PERI Finance uses a plethora of technological innovations to improve the synthetics and derivatives trading experience: moving defi onto the Polkadot network, implementing the tokenization of diverse assets, and giving its trading community a say in the future of the organization. With PERI Finance’s vAMM, or Virtual Automated Market Maker, trades can be leveraged by up to 20 times, meaning that users can highly amplify their exposure to the market. While increased exposure can mean increased risk, PERI Finance is seeking partnerships with industry leaders in traditional finance as well as defi to reduce and mitigate these risks for its clients. 

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