As we continue to broaden the scope of Planet’s mission to Decentralize the Planet’s Finances, we are pleased to unveil the introduction of Perpetual Trading.
In addition to trading activities, Perpetual Trading within the Planet ecosystem also allows users to interact with a money market by borrowing and lending funds. This allows users to earn interest on their idle assets and leverage their positions for trading purposes.
Planet will apply its current tokenomics to all fees collected from the Perpetual Markets. This means that 50% will be allocated to purchasing GAMMA, 35% to buying and burning AQUA, and the remaining 15% will go to the treasury.
Through our partnership with ApolloX Finance, Planet is now offering traders access to future contracts with deep liquidity and tight spreads. The trading infrastructure used has been designed with off-chain order-book matching and on-chain settlement.
Traders are able to take advantage of features such as limit orders, stop limits, and post-only orders, while maintaining the privacy of a DEX. No intermediaries and no requirement for KYC, while having access to advanced trading features.
The trading fees for makers are 0.02% of the notional value, while for takers, they are 0.07%. In the future, if there are sufficient trading volumes, there may be an opportunity to receive a trade fee discount by using AQUA or GAMMA to pay the fees.
Planet’s Perpetual Markets signifies the first of many major releases & developments within the Planet ecosystem under Planet’s new leadership. We’re excited to continue to deliver high quality, functional and in-demand products powering the DeFi landscape and our vision to Decentralize the Planet’s Finances for the years to come.
Perpetual Trading 101 with Planet
Perpetuals, perpetual swaps, perpetual futures contracts, or perps — are derivatives that enable traders to trade the underlying asset without an expiration date. With perpetual trading, users can leverage their capital by trading on margin — using borrowed funds to increase their trading power. However, unlike traditional futures contracts, there is no set expiration date for perpetuals, making them an attractive choice for traders seeking a flexible and efficient way to trade assets.
Perpetuals allow traders to bet on the future price of an asset, using borrowed funds to speculate on its performance. This means that users can trade a large notional value of the underlying asset (such as 5,000 BNB) by only depositing a portion of the notional in margin. Furthermore, traders can take positions in both directions by buying (long) and selling (short) perpetuals, making it an ideal trading tool in volatile markets.
This flexible trading mechanism also allows Planet to offer a diverse range of assets for traders to trade, including those that are not currently available on Planet and the BNBChain. By trading the contract, users can receive a payoff based on the underlying asset, rather than owning it. In summary, perpetual trading is a powerful tool that enables traders to trade on margin, be capital efficient, and take advantage of the flexibility and efficiency of perpetual futures contracts.
Refer to the links below for ApolloX’s documents containing guides and additional information on how to utilize perpetual trading. These resources are generally applicable to perpetual trading on Planet.
For individuals who are new to trading futures and perpetuals, it is imperative that you exercise caution and thoroughly evaluate whether such trading aligns with your risk tolerance, investment goals, experience, and financial situation. Perpetual futures contracts fall within the category of derivatives, and trading in derivatives is highly risky. It is incumbent upon you to gain a complete understanding of these risks and assume responsibility for any potential forced asset liquidations or losses.