Perpetual Protocol Integrates LI.FI’s Cross-Chain Swap Widget

We’re proud to announce that derivatives platform Perpetual Protocol integrated LI.FI into its dashboard. Now, users can swap their funds from any asset on any chain into USDC or ETH on Optimism which they then can use to engage in derivatives trading for all offered tokens.

Before LI.FI, Perp Protocol users had to go to several bridges and DEXs to bridge their funds to Optimism involving multiple dApps and several transactions. With LI.FI, any new or existing user can directly bridge to USDC or ETH on Optimism in a single transaction, thus improving the overall user experience and onboarding experience of the protocol. This will allow derivative degens and liquidity providers alike, to gain easier access to all possibilities offered by Perp.

To use LI.FI on Perp.com, a user needs to click on Deposit USDC

Bridge USDC to Optimism using LI.FI. Source

What is Perpetual Protocol?

Perpetual Protocol, or simply Perp is a protocol that allows users to trade perpetual contracts for a multitude of cryptocurrencies. The project has been running since 2019, having launched its v1 on Gnosis Chain in December 2020, and recently in November of 2021 gave users access to its v2 Curie which is the current version running on Optimism. Users require USDC or ETH/WETH as collateral in order to fund different positions, resulting in either a gain or loss of USDC or ETH, regardless of which token they are offering contracts. Currently, contracts are open for the majority of large-cap tokens, including BTC, ETH, LUNA, SOL, etc.

Get In On Perp

Perpetual contracts are the most used form of derivatives trading in the crypto space. The aggregation of all open interest in futures vs. options still remains a complex task, as so many new decentralized choices are appearing. If we simply take the open interest for BTC perpetuals on CEXs vs. the open interest for BTC options, we clearly see that perpetuals are still what users prefer. Perp is leveraging this advantage by giving individuals and institutions a non-custodial way to enter the playing field. Furthermore, by launching on Optimism derivative users, which were previously active on mainnet, have a super-fast transaction finality compared to the mainnet. For derivatives traders, this is an extremely important pinpoint, as execution time is vital for taking advantage of market volatility.

One important feature that Perp integrated into their v2 is Uniswap v3’s capital efficiency. Individuals who only want to earn a share of the trading fees on Perp are also given the possibility to do so without interacting with any derivatives contracts. Makers provide liquidity to the exchange by depositing USDC, which is then equally converted into the vPools, giving exposure to USDC and the given token that may be traded. As on Uniswap v3, they must also decide in which price range their liquidity may be traded. Thus the risks faced are impermanent loss, as well as not earning rewards if the token is being traded outside of its given range.

Figure: Key Stats of Perp Protocol. Source

LI.FI has partnered with Perpetual Protocol in order to simplify the UX for those who would like to indulge in the world of perpetual contracts. This is a necessary step for the space, as tools such as perpetual contracts have been the leading way for hedging against spot positions in any traditional industry. The more institutions arrive, the more demand there will be for derivatives platforms, as they are far more wary about risk management than your average degen.

LI.FI X Perpetual Protocol

We’re delighted to welcome Perpetual Protocol to the LI.FI family, making Perp’s multiverse, multichain. We believe that making L2 and sidechain dApps multi-chain is one of the best ways to improve the UX of onboarding new users.

We are excited to see who will integrate our SDK or widget next!

Get Started With LI.FI Today

Enjoyed reading our research? To learn more about us:

• Head to our link portal at link3.to
• Read our SDK ‘quick start’ at docs.li.fi
• Subscribe to our newsletter on Substack
• Follow our Telegram Newsletter
• Follow us on X & LinkedIn

Disclaimer: This article is only meant for informational purposes. The projects mentioned in the article are our partners, but we encourage you to do your due diligence before using or buying tokens of any protocol mentioned. This is not financial advice.