Shield SLD Курс N/A

What is The Risk-Free Perpetual Contract?

The risk-free perpetual contract is Shield’s answer to the existing limitations within the decentralized derivative ecosystem. It uses a combination of a dual liquidity pool model, SLD (the native token of the platform), a decentralized brokerage system, and external liquidators to counteract the existing limitations.

For instance, the huge downside risk or even liquidation that is caused by the price delay of existing decentralized perpetual contracts is avoided using a funding-fee mechanism, allowing users to open a long or short position with a prepaid funding fee. The maximum loss is limited to this prepaid funding fee, essentially delivering a risk-free protocol in a trustless environment. We’ve talked about how the Risk-Free perpetual contract solves these problems in this post, so make sure to check it out.

Salient Features of The Risk-Free Perpetual Contract

1. 100% cover on the position from the price downside. First of its kind on Ethereum Layer 1.
2. Exercise at any strike price at any moment.
3. Trade 24/7 on-chain in a Non-custodial, trustless environment.
4. No registration, KYC procedures, or email required.
5. Strong liquidity backed by dual Liquidity Pools (LPs) in a Peer-to-Pool model
6. Incentivizes participation of external liquidators using two incentive plans — gas fee-based and competition-based.
7. Completely Decentralized Brokerage system to incentivize referrals.
8. Highly accessible — All you need is an internet connection along with an Ethereum Wallet