We've recently observed yet another incident involving a centralized exchange (CEX), this time with Binance and the US Department of Justice (USDOJ). This shouldn't be surprising and only reinforces the notion that decentralized exchanges are the preferable option.
As a result, there's a growing presence of Perpetual Decentralized Exchanges (Perp DEXs) boasting enhanced spreads, superior user interfaces, and providing an experience similar to centralized exchanges (CEXs). It's likely we'll see a continued proliferation of these DEXs. Albeit, there’s no need to fret; healthy competition is inevitable and beneficial.
With more Perp trading activities moving on-chain, Perpy is offering something a bit different. Rather than being yet another Perp DEX, the protocol is creating a unique opportunity for existing traders on other platforms, as well as for non-traders or investors alike.
Perpy is a fully on-chain and non-custodial SocialFi trading protocol that allows investors to invest in expert traders on GMX and Level finance. In other words, investors are betting on the success of GMX traders, who in turn are providing value. On Perpy, everyone gets to win at the end of the day – investors win from winning trades, and traders get a share of performance fees.
On today’s plate, we’re gonna be highlighting all the amazing tidbits about the Spectra update of the Perp finance platform. These new additions make Perpy a lot more efficient and rewarding as an investment trading platform, cutting across a new frontend, a new vault architecture, the trading engine, new features such as support for Spot and Options trading, and even changes for the $PRY token.
Grab a seat and maybe some popcorn.
To begin with the much easier stuff: Perpy’s all dressed up much better than before; wearing a new UI and offering a much better user experience compared to the old Perpy.
Improved UI Features:
- Perpy Finance went through a whole new rebranding which included new colour schemes, a new logo, and a modern UI
- Vault Views: Perpy’s Spectra update introduced three new views to enhance the experience of both traders and investors: The compact view, vault explorer, and Vault list.
- Compact View: You can now switch to a compact view; more holistic than the previous vault card view as shown below. However, the compact view will exist with a side-by-side list and vault card views, allowing users to choose based on preference.
- Vault explorer: The new vault explorer will provide important information on a trader’s performance, allowing investors to make informed decisions when choosing a vault to deposit into. The vault explorer will showcase trading data over time alongside other details. Users will be able to search through Vaults using varying filters according to preference.
- Vault List: View this as Perpy’s version of “Discover” on a socialfi app that allows users to find interesting accounts. In a similar fashion, Perpy introduced the Vault list that aggregates all the Vaults available on the platform allowing users to make their choice.
The spectra UI update doesn’t end there, it stretches to include:
- An on-chain track record for trader performance as well: This feature will allow investors to deep dive into Traders’ performance over time as well as become conversant with their trading styles, helping investors to know when they should double down on their investment or when to move funds to a different vault.
- A profile feature which limits the fugazi and gives traders the opportunity to develop their brand; they (traders) will be able to share updates and stats through a FEED feature that works just like any social platform out there.
The Spectra update is certainly not only cosmetic. It also cuts across how vaults now operate and are significantly improved, as it’s been completely redeveloped from scratch.
- Multiple assets in one Vault: As opposed to before the Spectra Update where traders could only trade BTC and ETH limited to one asset per vault, Traders will now be able to trade multiple assets (BTC, ETH, BNB, and ARB) in a single vault. Perps and spot trading will be supported offering a way bigger list of assets (without leverage) like an asset management platform such as Nested, Valio etc.
- The new assets available for trade come as a result of another Spectra update which takes the Perpy platform from a mono-chain protocol to a multichain protocol as Binance chain will now be available alongside Arbitrum.
- Set Multiple SL/TP: The Spectra update will allow users to set multiple stop-loss and take-profit orders thereby giving traders a better user experience.
Incentive program/$PRY updates:
The Spectra update is also coming with a change in the fee structure of the protocol as well as an incentive program.
In terms of fees, there are a lot of significant changes such as the removal of the high watermark approach to fee collection— which means that despite having to stick with the numerical structure of the modifiable performance fees (0-50%), the fee will only be paid when a trade is closed in profit as opposed to the former, wherein performance fees were collected based on the historical performance of the Vault share.
Furthermore, regarding fees, trading on Perpy remains entirely free—apart from performance fees, traders' profits will not be deducted. Essentially, this facilitates access for traders of various skills and backgrounds while enabling investors to select from numerous trader vaults emerging due to Perpy's new open-door policy. Nonetheless, decisions on fees are subject to community input and feedback.
For example, should a Vault contain a percentage of the Vault manager’s funds and the rest, a percentage of Investor funds, Perpy would only collect performance fees on the percentage of funds belonging to investors and only if the trade is in profit. The profit would be distributed as such; 80% to the investors based on their vault shares, and 20% to be shared between the trader and $PRY stakers, with 80% of that 20% to the trader as performance fees, and the least percentage (20% of the 20%) to $PRY Stakers. For as long as trades are profitable, everybody wins.
Other essential updates from Spectra associated with fee structure and processes on Perpy include the removal of the option to withdraw funds during an ongoing trade. Instead, an auto-withdrawal option will be made available for investors to withdraw funds when a trade has been closed. Thanks to traders being vocal about the modification of trader position size, the auto-withdrawal option will help provide a better trading experience allowing traders to be in full control of their risk management.
As we said earlier, Spectra updates encompass almost every aspect of Perpy, including the PRY token with a few unique changes that improve the health of the token, aligning incentives between long-term PRY Stakers and liquid stakers.
To do this, a new staking module is introduced that’ll allow long-term Stakers to benefit more from their commitment to the protocol by earning more from protocol fees alongside other benefits.
The new staking module implements a 1x multiplier for liquid Stakers on protocol fees while charging them a 0.5% unstaking fee which will be burned to reduce the circulating supply of the PRY token. On the other hand, locked staking will attract a 3x multiplier on protocol fees, and a 1.5x multiplier during the 6-month redeeming period, there will also be no unstaking fees and additional benefits accrue to locked stakers such as platform fee discounts, governance rights, priority access to new features and closed beta, and lastly future benefits.
Perpy will also be implementing a management fee as a new feature for traders, allowing traders/vault managers to opt in for manager fees (0-5% annual fee) on the vaults. This will generate additional revenue for the protocol which will directly benefit PRY Stakers as they’ll earn directly from the 50% cut accrued to the protocol from management fees.
To add, xPRY holders will be allowed to manually migrate their tokens on a 1:1 basis to vPRY should they choose not to vest their tokens. However, those who are vesting, they'll be required to wait until the vesting period ends before being able to migrate their tokens to vPRY. The vPRY is a vested version of the PRY token with a max vesting period of 180 days (6 months) and a minimum vesting period of 15 days. Vesting for the maximum period allows vPRY holders to redeem PRY on a 1:1 basis, while those who vest for the minimum period will only be able to redeem their tokens at a 1:05 basis.
Lastly, Spectra update will see a few important external protocol integrations beyond GMX, such as Lyra finance.
Spectra ushers Perpy into a new phase filled with lots of advantages and user-focused benefits that open the protocol to an influx of users. The platform is designed to be both advantageous to the investor and the trader. For example, it is secure for investors as vault managers can’t transfer trading funds, while on the other hand, Traders have total control over the capital, allowing them to trade with ease whenever they want.
Another aspect I find particularly exciting is the addition of more L2s, thereby opening the door to a basket of tradable assets which benefits both investors and traders as they’re no longer limited to a few assets.
We are curious to see how far Perpy can go with these new features, and while we are at it, we also take cognizance of the fact that more updates besides Spectra will come as a result of the team’s commitment to improving the trading conditions and investment environment.