What is Peri?
PERI Finance is a decentralized synthetic cross-chain synthetic and is a derivative exchange protocol. Peri offers unlimited liquidity on the Polkadot network.
It offers access to a wide variety of traditional crypto and financial assets under both leveraged and non leveraged synthetic products.
The great thing about it, the common drawbacks like high GAS fees, slow transaction speeds, and vulnerability to pre-loan or fast lending don't arise on Peri.
So why choose Peri Finance?
On PERI Finance, anyone has endless opportunities to access a wide range of financial assets and traditional cryptocurrencies in both leveraged synthetic products and synthetic products.
This happens because PERI has eliminated difficult procedures and complicated processes, detrimental to anyone coming into contact with investment assets in the traditional financial markets.
By simply staking PERI and mining pUSD, users can either convert one asset to another or open long or short positions of leverage contracts as the basis for different assets without any restrictions.
The PERI exchange doesn't need a liquidity provider. For convertible transactions Pynths, the counterparty is a debt pool collateralized by PERI and USDC staked by holders, so the liquidity available in the pool is infinite and no slippage exists.
For leveraged Pynth, perpetual contracts, virtual AMM backed by equity PERI is a mechanism that provides liquidity.
Thanks to the unique characteristics of the vAMM (virtual AMM), with no liquidity providers involved in the trade, there is no risk of investors losing their PERI or USDC.
There are three benefits of staking:
- Transaction fee
- PERI inflation rewards
- The return on stakes is calculated according to the PERI assets generated.
How does Peri work?
Staking and Pynths
Staking and Reward
PERI is a utility token used to create a liquidity pool during staking, creating the basic Pynth, and pUSD.
It is also a voting tool in PERI DAO, which will play an important role in the development of PERI Finance.
PERI holders will receive three different rewards for staking PERI or USDC and mint Pynths.
PERI to USDC ratio will be 8: 2, which can be changed by PERI DAO later.
The first reward comes from PERI's inflation supply policy. PERI's initial supply will be 11.000.000 and more than 9.000.000 will be issued over 40 months to compensate for the weekly stakes, resulting in a total of 20.000.000 in circulation.
52 weeks after the staking rewards activate, the amount of inflation decreases by 1,25% weekly.
After 40 months, the annual inflation rate will be fixed at 5%. 80% of the inflation reward will be passed to the user who stakes PERI and the remainder to the user staking USDC, which can be changed later by PERIDAO.
The second bonus comes from the distribution in PERI.Assets's revenue.
Managed funds make up 50% of the fund raised from the PERI token sale, so holders can be rewarded with additional profits just by staking PERI.
Profits are only proportional to those who maintain a C-Ratio above 400% during the claim period with PERI (50%) and BTC / ETH (50%).
Finally, the distribution of commissions arises in Pynths transactions and leverages Pynths contract transactions. By staking PERI and USDC, users can earn pUSD.
User can exchange it for another Pynth like pBTC or lock some amount of pUSD to open a leveraged Pynth position like pBTCpUSD, the system will take about 0,3% fee and convert it into the corresponding allocated group of fees has PERI stakers right. Pynths exchange fee rates may vary depending on the property.
Collateral Ratio (C-Ratio) and Mint Pynths
The collateral ratio (C-Ratio) will be adjusted to the optimal rate at 400%. The reason why C-Ratio is lower than other competing projects is because the Pynths' position risk in the protocol is protected by traditional financial market products, risk reduction, collateral liquidation at 150% and set aside the loss insurance fund for the platform.
With all of those risk management items, PERI can add stability to the platform, giving users exposure to more assets.
As PERI's price moves, C-Ratio moves accordingly. As the price of PERI increases, the PERI increment can be used to generate more pUSD, which can be redeemed into additional Pynths assets.
Conversely, when it falls, some pUSD can be burned to increase the percentage of collateral. Users who maintain this optimal C-Ratio higher than collateral can claim an exchange fee reward and a staking inflation reward.
Pynth (PERI Synthetic Assets) is synthetic asset of Forex, Indices, Commodities and Cryptocurrencies in traditional financial markets. The price moves according to the actual price of the underlying asset. it could be called Delta One derivative, however since transactions are carried out by smart contracts in blockchain network and all assets are on PERI wallet, they are transparent, very convenient and authoritative. high reliability.
Pynths' products are USD, EUR, GBP for Forex, S&P 500, HANGSENG for Indices, Gold, Silver, Oil for Commodities, BTC, ETH, LTC and Inverse Crypto Currency for Cryptocurrencies.
PERI Liquidity Pool is a pool created during the process of PERI holders setting PERI and Pynth mint called pUSD. This group acts as a liquidity provider, a partner when trading pUSD to pBTC or pEUR.
So, it can be said that liquidity is limitless. In other words, the lack of liquidity or slippage that exists in traditional financial markets will disappear.
However, if all users had pBTC only and the price of BTC increased by 50%, total debt also increased by 50%. In this case, the collateral pool, the staking pool has the opposite position, the pBTC sells (or the piBTC inverse), so the buy / sell ratio plays an important role in the overall margin ratio of the system.
PERI Finance will increase the stability of the system by reducing risk by various methods such as protecting the position in the on / off chain against the imbalance of the system's position.
What is Peri Exchange?
PERI.Exchange is a derived DEX of Pynths (synthetic assets) without order book. The DApp offers both leveraged and leveraged products. Users can convert Pynth to Pynth without worrying about liquidity or deep slippage. This happens because the debt group's smart contract is backed by collateral that acts as a liquidity provider.
Users can also benefit by executing short or long positions of Pynths with 20 times leverage. Pynth price is provided by Oracle while Pynth perpetual contract price is determined by virtual AMM.
Convert Pynth to another coin / token
To convert Pynth, you first need to mint pUSD. From locking PERI or depositing USDC with a smart contract, users can minimize pUSD and create collateral.
Smart contracts limit the amount of pUSD to keep the collateral percentage above 400% and transfer the pUSD to the user's wallet. Then, the updated user's debt ratio and newly updated record are recorded in the debt book.
Users can also use minted pUSD in exchange for other assets of their choice. For example, when a user converts pUSD to pBTC, the system burns pUSD and generates pBTC for the value excluding the 0,3% fee and places it in the user's wallet.
Any partner, order book or order matching system is not required and transactions are executed by limitless liquidity and the system's total liabilities remain unchanged.
The role of Peri Asset
Rewards are in exchange Fees and inflation rewards that can be enough to motivate users.
However, PERI.Finance strengthens the intended use of the system to its users by distributing the profits generated by the integrated arbitrage verified trading system of traditional financial markets and marketplaces. cryptocurrency school for many years.
PERI, BTC and ETH will be used to pay the rewards. It is designed to reward regular stakers without the use of additional assets, and for a portion of the revenue, PERI will be bought back from other exchanges to help the PERI price go up and some will be paid out as the reward and the rest will be burned.
Where does the money come from?
Funds used for PERI.Assets are funds raised from the PERI sale, which will be sold within 20 months.
50% profit distribution of PERI Assets will encourage investors to maintain a collateral ratio above 400% on a proportional staking basis and the remaining 50% will be distributed among the participants of the transaction. in proportion to the volume of the transaction.
PERI tokens are also used for governance. Peri created a PIP (PERI Improvement Proposals) system to gather community input, so anyone can submit a PIP using 1PERI and, when approved, the amount of PERI Used for voting will be reflected in the system. PERI that was used at this point will be returned.
Structure of the Peri Finance system
OVM & Layer2 solutions on Polkadot
To effectively solve the problems of DeFis currently on Ethereum such as GAS fees too high for trading and front-running, Peri Finance is applying a Layer2 solution with OVM (Optimistic Virtual Machine) on Polkadot by mining WASM and Substrate.
By leveraging the Optimistic Rollups on Relaychain and the nature of Polkadot, it is possible to provide Pynths issuance and exchange platform that supports enhanced scalability and Interoperability. Putting most of the work on Layer2 with OVM significantly reduces the cost and time of transactions.
Furthermore, Polkado will allow the transfer of value across many different blockchain networks as the ecosystem matures. In the end, the stronger the platform, the more protected distributors.
Build a debt pool
To create a debt pool, a user must stake PERI. The user locks PERI and generates pUSD, default is Pynth, and uses smart contracts.
Smart contracts help users generate pUSD as much as the amount is limited by the optimal collateral ratio, and after the system records the debt, the smart contract will generate pUSD and transfer it to the wallet of user.
Debt created in this way is divided by the total operational increase in debt to determine the proportion of deposits on debt. These deposit rates are recorded in the system and used to allocate fees. Therefore, the generated debt pool is used as the counterpart of the transaction.
To pay off the debt, the required amount of pUSD needs to be burned. When burning begins, the system calculates the debt, updates the total amount of pUSD issued by the amount of pUSD burned, and unlocks the corresponding amount of PERI. Unlocked PERI can be transferred at any time.
If the pUSD is not enough and there is still debt, user can unlock all PERI by paying the debt with pUSD purchased through other means. If no action is taken, PERI can still be unlocked.
Conversely, if the pUSD is still left after the debt is paid off, you can buy additional PERI or PERI White Paper 20 in exchange for ETH using other exchanges like Uniswap. To achieve this goal, PERI will enhance devices to compensate for liquidity users as creators of Uniswap and Curve.
Take converting pUSD to Peth as an example. First, pUSD is burned to update user's wallet and total pUSD. The Pynth volume determination system is exchanged using an exchange rate provided by Oracle, depositing a 0,3% pUSD fee into the fee pool, and issuing PETH for the remaining pUSD.
Update user's wallet and pETH distribution. No partner will be required and one of two Pythagoras of the same value is burned and the other is made so as not to affect the debt group.
Trading on Perpetual Contracts
Perpetual contracts are traded using pUSD collateral. User can start trading Pynth perpetual contracts with pUSD by choosing leverage and amount of pUSD as margin.
Leverage on Perpetual Contracts
PERI.Exchange allows traders to leverage up to 20 times. Traders need to lock in the amount of the margin intended to be used to open a short or long position as collateral. If a trader wants to open more than 20 positions on margin, then he needs to lock in extra pUSD amount to the opened position.
However, it is still the same as using 20x maximum leverage as collateral is used to back up positions. Opening positions with a maximum position of 20x means your margin rate reaches 5%, which is close to the liquidation level and the risk of losing collateral is high.
Recurring sponsorship payments
Recurring sponsorship payments are the most common mechanism for perpetual swaps. PERI.Exchange follows FTX's method for calculating sponsorship payments, which is followed by the formula below:
FundingPayment = PositionSize * ((TWAP_Perpetual - TWAP_Pynth) / 24)
Approximately 0,3% of value is deducted from all Pynths exchanges and 0,03% of the nominal amount is charged to perpetual Pynth users.
The fees will be sent to the fee pool. Pool fees will be distributed according to each staking rate by requiring an exchange fee for users with a C-ratio of 400% or more.
Fee rewards will be available to claim in pUSD every Saturday at 24:00 UTC.
The values of all the properties aggregated in PERI.Exchange will use Oracle. It will have the task of receiving and processing quotes from trusted institutions in the current traditional financial markets.
It will then use different Oracle partners like Chainlink. This will also be decided through PERI.DAO.
For the system to operate well and stably, the application of automatic liquidation is very necessary. The liquidation will immediately liquidate the user-held Pynth if the collateral ratio reaches 150%. When Pynths are liquidated, they are converted to pUSD.
To exit and unlock all PERI, the user needs to write pUSD amount equal to your debt. If a user does not have sufficient amount of pUSD, they will need to buy pUSD with ETH or USDC in or out of PERI.
For perpetual contract, liquidation occurs when the margin of the user's position falls to 4% or less. This can be changed by PERI.DAO. Margin ratio is calculated as below:
Margin ratio = (Collateral + PnL) / used notional margin * 100
The liquidation is done by Liquidator, and it's a bot. Upon liquidation, Liquidator earns 1% of the remaining margin while the rest will not go to the protocol's loss reserve fund.
- Universal Market Access (UMA)
- Synthetix Network Token (SNX)
- Name of project: Peri Finance
- Sign: Fairy
- Blockchain Network: updating
- Asset Type: Token
- Token Type: Utility
- Token Standard: Updating
- Contract: Updating
- Total Supply: Updating
Gareth David Bowles - CO Founder of Peri Finance
Richard Kim –CFO of PERI Peri Finance
Technically, the Peri platform will be deployed on Ethereum first. After that, Peri will be available on Polkadot in Q2 2021.
After successfully applying Peri to Parachain on Polkadot, the team will add a perpetual contract to the exchange.
The team will keep an eye on an Ethereum scaling solution like ZK-Rollups as well as Parachains with WSAM and EVM on Polkadot.
This allows PERI to be able to apply solutions to the platform as soon as ZKR supports smart contracts well enough or any technology works better on Polkadot.
To create a better foundation and serve defi needs well, the team is working closely with the Polkadot and parachain projects.
Partners / backers
Currently the project is quite new, so I will update the information regularly.
Peri is not only a potential project from the perspective of a huge partner investing in them, but also the potential in the foundation of the project, promising to be one of the floating keywords when the project starts to go public.
Interpretation of terms (Alphabet)
- Burn: is the action of reducing the number of coins in circulation, reducing the number of coins in the total supply
- Cross-Chain: is a method of connecting different blockchains together.
- Front-Running: is the act of trading assets when knowing confidential information that may affect prices in the future
- Mint: is the act of creating a new block and recording information in the blockchain network
- Optimistic Rollup: is a type of layer 2 structure that does not run on the base layer of Ethereum but is still above ETH
- Optimistic Virtual Machine: is a virtual machine born with the task of ensuring the protocols of layer2
- Order Book: is a list of trading orders of the floor
- Synthetic Assets / Product: as defined by cointelegraph, Synthetic Assets are composite assets that have equal value when compared to other assets.
- Underlying Asset: are the assets that are used as the basis for the derivative assets to base their valuation on