PERI Finance: Future of Crypto Synthetics and Derivatives

UTC by Julia Sakovich · 4 min read
PERI Finance: Future of Crypto Synthetics and Derivatives
Photo: PERI Finance

PERI Finance and DeFi can empower users to realize potential profits at a greater rate than ever before.

PERI Finance is an innovative synthetics issuance and derivatives market that utilizes blockchain technology to supercharge trades through its protocol. By taking advantage of cross-chain advancements via the Polkadot network, PERI Finance solves many of the problems that currently plague decentralized finance as a whole.

With PERI Finance, users are shielded from paying the Ethereum network’s high transaction fees, experience lightning-fast transactions, and are guaranteed the highest levels of security with each transaction. Taking advantage of the latest tech provided in the layer 2 Optimistic Virtual Machine (OVM), PERI Finance provides next-level market functionality and delivers an optimized system for trading synthetics and derivatives minus the hassles that have burdened traders for years.

Pynth Technology Simplifies Trading

Making trades among a diverse set of asset classes can lead to friction that not only annoys but slows traders’ ambitions. Harnessing the power of defi, PERI Finance makes it possible to access both traditional and crypto-based assets without facing these hassles plaguing traditional markets.

By utilizing Pynths (Peri Synthetic Assets), PERI Finance’s bespoke financial instrument, which are pegged to and follow the price of cryptocurrency, forex, and commodities, the protocol alleviates the roadblocks traders usually face when executing a diverse set of trades. This ease of use helps ensure traders realize greater profits than can be found through traditional finance. Just about any asset can be synthesized into a crypto asset and traded through this process.

Trading with Limitless Liquidity, Zero Slippage, Earning Fees

Defi usually relies on liquidity providers in order to facilitate trades within decentralized marketplaces. Naturally, this can limit the liquidity available for possible trades to the amount that LPs add to the liquidity pool. PERI Finance has found a novel way to ease this barrier to scaling up trade, allowing for infinite liquidity. Through a process that negates slippage and earns traders fees that would normally go to a broker, users can stake an unlimited amount of the platform’s utility token, PERI, and USDC to mint the basic Pynth pUSD.

This gives each user the power to trade as much as they can handle, not as much as the liquidity pool can provide. This also means that half of the rewards generated from trade are given to those who stake above the optimal collateral ratio of 400%, and the other half is shared with traders based on their trading volume, meaning the more you trade, the more you earn in rewards.

PERI Holders Direct PERI Finance’s Future

The PERI token functions as a utility token that enables seamless trade with infinite liquidity. Moreover, PERI Finance operates as a DAO (Decentralized Autonomous Organization), which means no central authority or board has total control of this DAO, and its users, or stakeholders holding its governance token, can help steer the future of the organization.

Holding PERI tokens gives users the rights to determine the future direction of the protocol via PIPs, or PERI Improvement Proposals, which are regularly collected and voted on. Since voting and counting the votes occur with the same security and transparency offered by blockchain technology, users can be assured that their decisions as governance token-holders will be fairly tallied and heeded. This is another level of user-friendliness that crypto can offer traders as it merges with traditional finance.

PERI Finance Develops for the Future

Trading synthetics and derivatives via the Polkadot parachain system moves trading efficiency leagues ahead. This is a future where trading is not only made easier, but more abundant through opportunities that have never existed before now. Adding to the potential for this improved future, PERI Finance is also in the process of developing machine learning (ML) that uses data to forecast markets and capture arbitrage opportunities before they happen. In this way, PERI Finance and DeFi can empower users to realize potential profits at a greater rate than ever before.

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