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Perpetual Protocol Newsletter Issue #37 - New Liquidation Mechanism, $OP as Collateral is Near

Perpetual Protocol Newsletter
Perpetual Protocol Newsletter Issue #37 - New Liquidation Mechanism, $OP as Collateral is Near
By Perpetual Protocol Team • Issue #37 • View online
Hi everyone,
We’re back with a new issue of our bi-weekly totally non-derivative newsletter. The highlights of the last sprint include the implementation of a new liquidation mechanism and we are working on the addition of $OP as a new collateral type. Read on below to find out more.

Highlights from the last development sprint
🛠️ Product
1. Liquidation Mechanism Update
We’ve updated the smart contract to improve the liquidation mechanism on Perp v2, moving from market-selling positions to deal with liquidations to position-transferring liquidations. The TL;DR: liquidations can happen without affecting the market price by incentivizing liquidators to take on positions very close to insolvency with a discount. Learn more about the new liquidation mechanism in this blog post, written by our smart contract dev Shaoku Tien.
2. Pool Party Rewards 
Our Pool Party initiative rewards liquidity providers that facilitate volume in any market on Perp v2 in the form of $OP and $PERP (5k per market and week each) in addition to the earned transaction fees. We discovered some LPs are trying to game the system. Their rewards have been removed and redistributed to the rest of the LPs. We will continue to implement the filter every week to make sure that honest LPs are rewarded and provide a sustainable program in the long run. You can check your rewards here.
3. $ETH Collateral Cap Raised
The cap for the $ETH collateral vault has been raised to 600.
🤝 Marketing & Partnerships
1. Battle of the Perp Poker Masters #1
Thanks to everyone who participated in our first Perpetual Protocol community poker tournament and congrats to the winners! The prizes for the top 3 players included the Perp Poker Master Hoodie, Perp Poker Cards and a special Battle of the Perp Poker Masters #1 Master NFT for the winner. All participants who shared their wallet address can mint the exclusive Battle of the Perp Poker Masters #1 Player NFT. Since the first tournament was so well-received we’re making it a recurring event. Stay tuned for the next one!
2. Twitter Space with DeFi Edge
Our BD Lawrence joined DefiEdge‘s panel to chat about how to maximize DeFi yields in a bear market together with StakeDAO, Keyrock & Mangrove DAO. Listen to the recording here.
To-dos in this development sprint
🛠️ Product
1. $OP as Collateral
The launch of $OP as collateral is right around the corner 👀
🤝 Marketing & Partnerships
1. Perp Interactive
Our new weekly session about all things Perp is going into the fourth round. No matter if you’re new to Perpetual Protocol or one of our long-time community members - join us on Thursdays for an interactive session. Please register here.
2. Twitter Spaces with Contango & Diamond Protocol
This sprint we’ll be hosting two Twitter Spaces! In the first one, we’ll be chatting with Diamond Protocol, who has built a Cash & Carry strategy vault on top of Perpetual Protocol v2. In the second one, we’re joined by Contango, a new player in the DEX space introducing expirable futures. Stay tuned for more details.
Team & Ecosystem Updates
1. Product Stats Update
Perpetual Protocol (✨🔴_🔴✨)
Did you know? 🧐

Over 80% of the liquidity on Perp v2 is facilitated by external makers, with over 400 daily unique LPs.
2. What is Basis Trading?
Basis trading is an arbitrage strategy where you go long on an asset in the spot markets and go short using perpetual swaps, also known as the “cash and carry” strategy. Four partners have already built automated basis trading strategies on top of Perpetual Protocol: 
Learn all about basis trading and more about the different partners that have built automated strategies on top of Perp v2 in our blog post.
3. Perpetual Protocol User Survey
Share your opinions and feedback with us to help shape Perpetual Protocol’s future! As understanding you and your experience is our top priority we invite you to complete our user survey, it only takes ~10 mins.
4. Community Call #33
As usual, we will host a Community Call this Wednesday, August 24th, to bring you up to speed on the latest and future updates. Join the English Community Call at 1pm UTC live on Youtube
Further Readings
Did you enjoy this issue?
Perpetual Protocol Team

The latest totally not derivative bi-weekly update from the Perpetual Protocol team.

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