Perennial Protocol has finally introduced V2. The achievement comes with a long period of extreme effort and dedication, resulting in the fact that it will be quicker, cost-effective, and capital-effective. However, let us have a closer understanding of the achievements of Perrenial’s V1.
V1 of Perennial was a reorganization of derivatives in terms of a real DeFi. The structure was designed with the permissionless construction of iconic markets, high-end composability, and a fully customized LP exposure on a shared liquidity layer in mind. Perennial was responsible for launching the Ethereum and Arbitrum markets. Three months after its debut, Perenial’s trade volume exceeded $1 billion, and its liquidity reached $10 million.
V1 caught the attention of builders. Siren created an options protocol for Perennial. Cryptex Finance took advantage of the Perennial Framework to deliver exclusive markets. Liqui started creating delta-neutral LP vaults utilizing Perennial. The company received multiple feedbacks, and V2 was put on track to solve the shortfalls of V1.
In tandem with the goals of Perennial being the prime DeFi original, V1 was maximized for utilizing the strong and dependable on-chain framework. The resultant factor was slower Oracle updates and trade implementation.
In the case of V2, Perennial has enhanced its oracle mechanism for backing low-latency Oracle. This shortens the time between submission and implementation. The company has incorporated Pyth’s On-demand Oracle mechanism. Traders and system products created on Perennial are able to obtain funding and come in for lesser funding fees.
With V2, different long and short markets are brought together, creating a single market for every asset. They can be traded long and short. All of this creates further capital effectiveness through the protocol. V2 allows Perennial markets to come with deeper liquidity and with only a small segment of the TVL. The model also provides market coordinators with the required tools for lessening risk factors.
V2 was created to provide high-end on-chain exposure, like the backing of every price feed. There will be complicated order types, like preventing losses and making profits. Thrown in will be various asset vaults. Gauntlet will take up the risk-control factor.
Perennial V2 will play the role of a base for a liquidity layer targeting an ecosystem of DeFi products created with original markets in mind and an on-chain toolset for frontends, vaults, and various other protocols to connect with.