Perennial

Here's how it works:

1. Explanation:

   • Automated Market Maker (AMM): Perennial acts like an automated trader, always ready to take the opposite side of a trade, adjusting prices based on market conditions.
   • Traders: They can deposit money (collateral) to trade on price changes of different assets using leverage (borrowing money to increase potential returns).
   • Liquidity Providers (LPs): When there's an imbalance in trades, LPs provide capital to balance it out, earning fees and taking on some risk.

2. Key Features:

   • Cash Settlement in USD: Trades are settled in USD, a common practice in crypto derivatives.
   • Efficient and Low Fees: The protocol uses resources wisely, resulting in lower fees for users.
   • Customizable for LPs: LPs can choose their level of leverage and risk, and there are simple options for retail investors.
   • Developer-Friendly: It’s designed to be easy for developers to use and integrate into their own projects.
   • Permissionless Market Creation: Anyone can create and integrate markets, making the system very open and flexible.

In summary, Perennial offers a smart and adaptable platform for derivative trading in DeFi, with benefits for traders, liquidity providers, and developers.