PERI Finance makes trading synthetics and derivatives easier than ever while rewarding its users through staking its native token, PERI. Offering supercharged speeds on the Polkadot blockchain, PERI Finance reduces the fees paid to participate in decentralized finance (defi) and incentivizes things further with built-in rewards from using their system.
Users can not only leverage trades with PERI Finance at a rate of 20x, but they can leverage a wide range of digital assets to further build their financial returns, and the rewards rise hand in hand with trading volume. Traders will see the benefits in a model that upends traditional finance and its mounting fees per trade and replaces it with a model that rewards users for trading instead.
The Basics: PERI, Pynths, and pUSD
Pynths are the tokenized form of any asset traded with PERI Finance. Instead of trading the asset itself, traders are given the convenience Pynths offer in representing that asset and its price, whichever way it moves. This streamlines trading and reduces the barriers to trade often encountered when traders and markets juggle crypto, commodities, and FOREX. One Pynth can be traded for another Pynth in nearly frictionless trade, meaning traders can arbitrage digital and foreign currencies into commodities, Canadian Dollars into cobalt, cobalt into crypto and back again, nearly hassle-free.
By staking PERI or USDC, otherwise known as locking its value into a smart contract, users are given pUSD at a collateralized rate of 400%. The most basic of Pynths, pUSD can be traded for other Pynths at equal values. As the value of PERI rises, traders can increase their collateralization, but this system also means traders are allowed infinite liquidity, as liquidity in the PERI Finance market is solely dependent on traders’ access to funds rather than the market’s access to liquidity.
Normally, defi protocols suffer from liquidity shortages, as the liquidity for trades is supplied by other parties, and this is yet another shortcoming of the system that PERI Finance better handles as it introduces more derivatives trading to defi as a whole.
Three Ways to Access Rewards
The number of PERI minted will start at 11 million and increase by 9 million over a 40-month period. After 40 months, the inflation rate is set to 5%. Users who stake PERI will receive the lion’s share of this inflation as a reward, at a rate of 80%, and the rest will be given to those who stake USDC with the protocol. Then, those who maintain a collateralization ratio above 400% during rewards periods will receive a proportion of the funds collected from PERI revenues equal to their share.
Finally, every time pUSD or other Pynths are minted, a 0.3% charge is collected and later distributed to users who meet the staking criteria. Considering there are so many ways to receive rewards, it’s almost as though PERI Finance pays you to use its protocol, not the other way around, defying the logic of traditional financial models.
What Do Rewards Mean for Traders?
Many of the basic functions of using the PERI Finance protocol create rewards that are distributed among qualifying users, usually those who help create these rewards. This is where defi can be identified as a world apart from other financial models, where the house always wins on fees. Building up a decentralized platform to reward traders for their activity is a revolutionary idea in the world of finance, and it shows why defi has quickly snatched over $100 billion in total value locked over the last year. As the rewards stay within the trading community, protocols like PERI Finance should help grow defi further into a more sustainable future for the many, not just the few.
