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Perpetual Protocol Newsletter Issue #41 - Hardening the Protocol, Contract Parameter Updates & More

Perpetual Protocol Newsletter
Perpetual Protocol Newsletter Issue #41 - Hardening the Protocol, Contract Parameter Updates & More
By Perpetual Protocol Team • Issue #41 • View online
Hi everyone,
Our focus in the last weeks has been on making the protocol as secure and robust as possible. We have been hardening the protocol and improving liquidity to provide the best possible experience to our users. Read on below to learn more about the different updates and measures we have implemented.

🛠️ Product
1. IF Soft Circuit Breaker
We have made an improvement to the insurance fund (IF) mechanism that helps to ensure protocol solvency: IF Soft Circuit Breaker. The Soft Circuit Breaker protects the exchange against insolvency resulting from a severe market event, protocol exploit or hack. In any such event leading to bad debt that exceeds the IF’s ability to pay back, traders that profited during the event will be able to realize these profits only when the IF has funds available to do so (i.e. funds from trading fees). The Soft Circuit Breaker helps keep all users’ funds safe, which is of the highest priority for the core team. If you have any questions or comments, please reach out to us on Discord.
2. Migration to Goerli Testnet
Our testnet migration from Kovan to Goerli has been completed. Please find the list of contract addresses here.
3. Contract Parameter Updates
Increased ETH Collateral Cap
Since ETH liquidity is getting deeper on Optimism, the ETH collateral cap has been raised to 1000 ETH. The team will monitor this for a few days and aims to further increase it in the near future.
Updated Max Spread Price Ratio
The contract parameter “_MAX_PRICE_SPREAD_RATIO” has been changed from 20% to 10%. After this update, users are not allowed to provide liquidity when the deviation of mark and index price is more than 10%. This ensures the system against bad debt resulting from a severe market event or price manipulation.
4. Liquidity Mining Update
We have updated our Liquidity Mining program “Pool Party” to make it more efficient and robust against potential wash trading. The new formula is based on the amount of time the price is within the LP’s range and the concentration of liquidity. This means only active liquidity will get rewards and concentrated liquidity will get more rewards. The new formula will apply to rewards distributed next week on Oct 24th for liquidity provided during Oct 16-23.
🤝 Marketing & Partnerships
1. Referral Program Update
The first rewards of the updated referral program were distributed yesterday, Oct 17th. All referral partners and traders that have locked at least 10 PERP into vePERP before October 13th 00:00 UTC can claim their rewards here. Reminder - if you haven’t already, bridge PERP to Optimism and lock into vePERP to migrate to the new referral program.
2. Socket Integration
Perpetual Protocol (✨🔴_🔴✨)
We have added @SocketDotTech as an in-dApp bridging option!

Easily transfer assets, bridge and swap all in one transaction right on https://t.co/I3Q67Uu4xH

It automatically selects the best route for you for a seamless onboarding experience🪡🫧 https://t.co/ChmdcqaPQI
3. Community Event: Perp Trivia Night
Perpetual Protocol (✨🔴_🔴✨)
Get your quiz hats on, it’s time for Perp’s first community-hosted trivia competition!

Sign-up on https://t.co/t0TD9OUNJt to compete in the Perp Trivia Night on October 7th 20:00 EDT. https://t.co/8hEctahPx2
Did you join us and the Perp community for Trivia Night? We had lots of fun, laughs and some awesome prizes for the winners!
4. Twitter Space with DeCommas 
Last week we invited DeCommas to chat about their delta-neutral basis trading strategy built on top of Perp v2, the newly awarded grant, and more. You can listen to the recording here or read the summary notes. During the space DeCommas announced an increase of the deposit cap to the PERP-ETH-MAINNET strategy to 100,000 USDC, which filled up within a few minutes.
🗺️ Team & Ecosystem Updates
1. New Tutorial Videos
Learn the different ways of how to earn rewards on Perp with our latest tutorials:
Stake through Lazy River for some passive income
Stake through Lazy River for some passive income
Join our referral program either as a trader or referrer
Join our referral program either as a trader or referrer
2. Monthly Grants Committee Update: September 2022
In September 2022 the Grants Committee awarded two new grants: Crypto n’ Carry is building a funding rate arbitrage dashboard for Perp and a funding rate arbitrage tool is being built to allow users to run arbitrage trades between FTX and Perp. Two grants are currently under consideration: Aira Protocol for building a vault wrapper allowing users to deposit on Perp v2 through Aira and Steer Protocol for building an automation suite, including automated liquidity vault creation and other tooling. Read the full report here
3. Community Call #37
As usual, we will host a Community Call this Wednesday, October 19th, to bring you up to speed on the latest and future updates. Join us at 1pm UTC live on Youtube
📚Further Readings
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Perpetual Protocol Team

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