The Perpetual protocol is a decentralized protocol, Perpetual contract for each asset trade backed by a virtual automated market maker (vAMM). The project aims to create new financial instruments by democratising derivatives on futures and other crypto assets.

Perpetual protocol, formerly known as Strike, It was created in 2019 inspired by emerging DeFi protocols like Synthetix and Uniswap. The team attempted to combine the best of these protocols to create a decentralized, perpetual-contract trading protocol on Ethereum. Due to its virtual AMM (vAMM) design, the protocol is able to support 20x leverage, short positions and lower slip points compared to other AMMs.

Unlike well-known automated market makers used for token exchange and price discovery, VAMM is only used for price discovery to deal with leverage and short positions. Similar to Uniswap, traders can trade with vAMM without a central authority and aim to remain market neutral and fully collateralized.

PERP is the erC-20 native token of the protocol. PERP tokens allow community members to manage agreements and pledge their tokens to a pledge pool for a fixed period of time. In return, the holder receives a pledge reward, which includes a reward for PERP and transaction fees.