A minimal, modular, and secure decentralized perpetuals trading protocol. Inspired by the elegance of simplicity, this MVP is built to demonstrate the core mechanics behind perpetual derivatives—trustless margin trading, liquidity provisioning, and real-time liquidation.
This protocol has 2 Missions. This repository delivers Mission 1, which implements roughly 50% of the basic functionality of a decentralized perpetuals protocol. The smart contract codebase is intentionally compact (~a few hundred lines), focusing on clarity and correctness.
The protocol uses a virtual AMM (vAMM) model to simulate trading without requiring real counterparties. The vAMM is responsible for pricing trades based on supply and demand dynamics, enabling decentralized and trustless perpetual swaps.
- Liquidity Provider deposits collateral into the vault.
- Trader opens a long/short position by depositing margin and selecting leverage.
- Smart Contract calculates risk, reserves required liquidity, and updates the state.
- Liquidator Bot monitors open positions and liquidates them if margin requirements are not met.
- LPs can withdraw unreserved liquidity at any time.
- Trader – Opens & manages leveraged positions.
- Liquidity Provider (LP) – Supplies protocol liquidity for margin trading.
- Liquidator Bot – Monitors the chain and enforces liquidation.
- Admin (you) – Currently managing upgrades, configurations, and risk parameters.
- PnL:
PnL = Position Size * (Current Price - Entry Price) - Margin Ratio:
Margin Ratio = Collateral / Position Value - Liquidation Condition:
Margin Ratio < Maintenance Margin - Max Leverage Check:
Used Liquidity ≤ X% of Total Available Liquidity
Frontend help wanted! If you're into DeFi, Solidity, or protocol design, I’d love to collaborate.
📩 DM me on Telegram: @Sg_milad
Let’s build the simplest, most secure perpetuals protocol—together.
| Component | Link |
|---|---|
| 🔒 Smart Contracts | github.com/sg-milad/perp-trade |
| 🧠 Liquidator Bot | github.com/sg-milad/liquidator |
| 🌐 Frontend | github.com/sg-milad/perp-frontend |