Quick introduction to perpetual futures
First introduced by BitMEX, perpetual futures (Perp) is a financial instrument that is designed to follow a set index price of an underlying asset. A good analogy would be a single stock ETF that follows the price of BTC, for example.
Perpetual futures has been one of the biggest derivatives around crypto assets, and implementing them on a decentralized exchange still has a great room for improvement including capital efficiency, properly addressing default risk from long-short imbalance, and providing adequate return mechanisms.
Perpetual futures is a useful financial tool for any trader looking for opportunities for
- 2.Leveraged exposure
- 3.Accessibility to various assets and indices