Futureswap: an AMM for perpetual swaps

For a detailed overview on perpetual swaps and the market opportunity in decentralized finance, see this research piece on Perpetual Protocol.

Ever since BitMEX launched perpetual futures in 2016, perpetual swaps have been a massive hit in crypto. Unlike traditional futures contracts, perpetual swaps don’t have an expiry date, which has made them easier to use for many investors because they don’t require rolling over positions on expiry. Crucially, the price of perpetual swaps is kept to the market price with a funding rate that incentivizes either long or short positions to come in and drive the price of the swap back towards the index.