Dear PancakeSwap Community,

We are thrilled to present the next installment in our academy series, focusing on Perpetuals V2! Building upon our previous discussions, today we will delve into the impressive new features that set V2 apart from both its predecessor, V1, as well as its market competitors.

Introducing the Revamped UI

One of the most noticeable improvements in Perpetuals V2 is the user interface (UI). We understand the importance of a smooth and intuitive UI for an optimal trading experience. That's why we've redesigned our UI from the ground up, offering a faster and more seamless ordering process for both beginners and experienced traders.

Unlike V1, which required multiple transactions to fund your wallet and open trading positions, V2 streamlines the process with just a few clicks. You can now add position size, margin, and other advanced orders such as taking profit and stop loss, all within the same menu. We have made every effort to ensure our new UI rivals the best in the industry in terms of user-friendliness and speed.

Another exciting feature of PancakeSwap Perpetuals V2 is the trading history details. Traders now have access to comprehensive information about their positions and order history. From leverage and fees to profit and loss, every crucial detail is at their fingertips. This level of transparency empowers traders to make informed decisions and fine-tune their strategies for maximum profitability.

In response to market fluctuations, PancakeSwap Perpetuals v2 empowers traders with the ability to add margin and adjust Take Profit/Stop Loss levels for their existing positions seamlessly.

You can learn more about the updated UI by accessing our user guide here.

Lower Trading Fees

At PancakeSwap, we take pride in offering some of the most competitive fees in the market. Perpetuals V2 maintains these low fees and opening and closing positions are 0.08% for cryptocurrencies. Furthermore, our new dynamic slippage model provides deeper liquidity and lower slippage for trading pairs, protecting users from price manipulation attacks. More technical features will be covered in future posts. Additionally, our user-centric trading reward programs, in partnership with ApolloX, and affiliate program (coming soon!) provide lower fees and more rewards for our users.

Higher Variety of Assets

PancakeSwap Perpetuals V2 introduces USDC as a margin asset for trading, expanding our trading options alongside USDT. Furthermore, BNB will soon be added as a margin asset, providing even more versatility for traders. With the ALP pool, V2 will offer enhanced flexibility for margin assets.

A Safer and Improved Risk Model

Safety and security are of paramount importance in the world of decentralized finance. With Perpetuals V2, we have made significant improvements to our risk model, ensuring a safer trading environment. In our previous piece, we covered the security and trustworthiness of the oracles and smart contracts.

In this post, we will discuss the on-call model and dual oracle solution. These solutions, supported by Binance and Chainlink oracles, verify positions and prevent front-running transactions.

The on-call model ensures that the price is the most up-to-date. When a user places an order, the oracle will get the latest off-chain transaction price and then trigger the order to be filled. This ensures no one can trade in advance to take advantage of price differences.

The dual oracle solution prevents any front-running and value extraction from price slippages. If the price from one oracle differs from the other by more than 1%, a circuit breaker is triggered, preventing the transaction from being completed. The dual oracle model also ensures that the most favourable oracle price for the ALP pool is used.

This architecture combines on and off-chain components to prevent front-running and protect on-chain derivative transactions. This substantial improvement surpasses solutions used by other platforms, which were susceptible to exploitation due to less robust oracle solutions.

The Binance Oracle Index price is derived from a basket of prices from major spot market exchanges, weighted by their respective trading volumes. This ensures a robust and reliable price feed, incorporating data from exchanges such as Binance, Huobi, OKX, Bittrex, HitBTC, Gate.io, Bitmax, Bitfinex, Coinbase, Bitstamp, Kraken, Binance US and Bybit. This diversified approach minimizes the risk of poor market performance caused by interruptions or connectivity issues in a single market.

In terms of trading, the funding fee is always received by the side with less open interest (OI). To further enhance the platform's position orders, we are introducing a new mechanism that will even offer 0 transaction fees for positions that align with the overall position balance. However, for positions that contribute to the overall position imbalance, slippage will be calculated as usual, based on the liquidity available in the centralized exchange (CEX) source markets.

Safer Liquidity Pools

In Perpetuals V2, we have also improved the security of our liquidity pools. The ALP pool, a liquidity provider token pool which funds PancakeSwap Perpetuals V2, now consists of multiple assets, including non-stablecoins. This is particularly important in a unidirectional bull market, where a pool without non-stablecoins might face continuous losses with no source of income. By including non-stablecoins in our pools, we increase the risk resistance of the ALP, ensuring a safer trading environment for our users.

We hope this post on the new features of Perpetuals V2 has provided you with valuable informative and insights. We invite you to explore these exciting features and experience how Perpetuals V2 can enhance your trading experience. Stay tuned for our upcoming posts, where we will continue to share more insights and updates about Perpetuals V2.

Want to learn more in the meantime? Check out our V2 initial announcement here, our step-by-step guide here, and click here to start Perpetuals trading.

Stack’em,

The Chefs 🥞