Is PERP coin worth investing in? Is PERP the primary currency?

PERP coin is one of the cryptocurrencies that has attracted much attention in the market currently, and many investors have doubts about its investment potential and status. So, is PERP coin worth investing in? Is it considered a leading coin? In this article, php editor Strawberry will answer these questions for you and help you better understand the investment prospects of PERP coins.

Is PERP coin worth investing in?

There are certain risks in investing in PERP coins. According to official data, the current PERP coin price is US$1.13, which is lower than the historical high price of US$24.9173 and the issuance price of US$7.675. The return on investment is -85.27%. Although there are 27 online exchanges, their market value is only US$84.2088 million, ranking relatively low. Overall, the current development status of PERP currency is average. Investors should carefully consider the risks and potential rewards.

PERP is the native token of Perpetual Protocol and an ERC-20 token on Ethereum. It is issued by the DAO and is critical to governance. Currently, Perpetual Protocol is managed by a single team, but the project’s ultimate goal is reportedly to transfer power to PERP holders, handing responsibility for development and improvements to the community.

In addition to being a fundamental aspect of the network, PERP can also be used as collateral. Stakeholders will receive unallocated or newly minted token supply and enjoy half of the network’s transaction fees.

PERP also introduces the insurance fund function as the first line of defense in the event of unexpected losses. These losses may result from losses in the liquidation process or from investors being unable to fund their positions. This insurance fund is accumulated through the protocol used, with 50% of transaction fees being deposited. If the insurance fund is depleted, a smart contract will be triggered to mint new PERPs and immediately sell these PERPs as collateral in the vault to protect the solvency of the system.

Is PERP the leading currency?

According to the current market conditions, PERP coin is not considered a leading coin because its value does not meet the standards of a leading coin. PerpetualProtocol is a decentralized perpetual contract protocol that supports any asset. The protocol implements trading through a virtual automated market maker (vAMM). Through PerpetualProtocol, traders can trade directly through vAMM without the participation of counterparties.

PERP uses the vAMM model, which is different from the AMM model used by Uniswap, Sushiswap, etc. Perp.fi is a groundbreaking financial innovation that combines the best of CeFi and DeFi. This means that perpetual contract traders can not only enjoy the high leverage provided by CeFi, but also maintain the liquidity and ease of operation of AMMs in DeFi. The innovation of vAMM is the biggest advantage of Perp.fi. It uses the price discovery mechanism of AMM to achieve rapid protocol expansion and liquidity attraction. Therefore, users do not have to worry too much about excessive slippage.

PERP tokens have several key functions. First of all, people who hold PERP tokens can participate in the governance of the protocol and manage parameters such as transaction fees, asset listings, and insurance funds. Second, PERP holders will be the ultimate backers when the insurance funds run out. In this case, the protocol will mint new PERP tokens and conduct an auction, paying out the auction proceeds to successful traders. These features allow the PERP token to play an important role in the operation and insurance mechanism of the protocol.

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