Why an Inverse Perpetual?
An inverse perpetual contract is one that is quoted in USD but margined and settled in the base asset -- in this case ETH. The benefit of this type of contract is that users do not have to take on any stablecoin exposure, and can use ETH that they likely already hold to trade with. Traders can now obtain leveraged long or short exposure to ETH while using ETH as collateral and earning returns in ETH.
While ETH is the underpinning of the DeFi ecosystem, there are currently only a few simple ways to gain ETH leverage in both an efficient and decentralized manner. With our Perpetual, users can ensure that they remain in control of their ETH while gaining increased leverage and trading on the most liquid orderbooks in DeFi.
How is the Perpetual Collateralized
An inverse ETH perpetual is collateralized in ETH unlike our BTC-USDC perpetual which is collateralized in USDC.
Is there Periodic Settlement?
No, there is no periodic settlement. The reported P&L numbers are in ETH for positions in the ETH perp, but no ETH is settled until the trade is closed out.
How are Liquidations Settled?
All Inverse ETH liquidations are settled in ETH.