Introduction:
In this exclusive interview, we sit down with one of the co-founders of Perpetual Protocol, a company deeply involved in the world of cryptocurrencies and decentralized finance (DeFi). Yenwen shares insights into their journey through the crypto space, their belief in smart contracts. Additionally, they shed light on Optimism Layer Two and the mechanics behind their latest launch, the Arbitrage Vault for OP and USDC.
The Power of Trustless Smart Contracts:
?Trustless smart contract on chain is really powerful.? Yenwen passionately highlighted the remarkable potential of smart contracts in revolutionizing the financial landscape. Despite initial skepticism, Yenwen and their team, primarily hailing from Taiwan, firmly believe that trustless smart contracts are instrumental in creating a transparent and trustworthy financial ecosystem.
Yenwen’s journey into the world of Perpetual Protocol began in 2017-2018 when they stumbled upon the captivating concept of writing trustless smart contracts that could be verified by everyone. Intrigued by the idea of decentralization and the opportunities it presented, Yenwen and their team decided to embark on a path that would ultimately redefine the way financial transactions are conducted.
Initially, Yenwen and their team were working on developing an accounting software for the crypto industry during the market crash of 2019. However, they realized the immense potential of DeFi (Decentralized Finance) and perpetual swaps, leading them to pivot their focus towards creating a platform that would provide innovative financial solutions.
One of the key aspects that Yenwen emphasizes is the power of trust in building a robust financial system. They firmly believe that trustless smart contracts, enabled by blockchain technology, offer a unique advantage in terms of transparency and security. By leveraging the capabilities of blockchain, Perpetual Protocol has been able to create a financial product that has generated substantial value. Yenwen asserts that such achievements would not have been possible without the transparency and trust provided by blockchain technology.
Optimism Layer Two and the Bedrock Upgrade:
Yenwen highlighted that op LY 2 introduces a groundbreaking approach by separating storage from computation, which results in a significant boost in throughput and a reduction in gas fees. This innovative technique has the potential to revolutionize the Ethereum network and address the long-standing challenges associated with scalability.
“They can provide much faster throughput, lower gas fees, while maintaining the same level of security as Ethereum on day one.? By decoupling storage and computation, op LY 2 enables Ethereum to process transactions more efficiently. Currently, on the Ethereum mainnet, every computation and storage operation incurs a substantial amount of gas fees. This can make transactions costly, especially during times of high network congestion. However, with the introduction of op LY 2, these fees can be significantly reduced, making Ethereum more accessible and affordable for users.
Furthermore, Yenwen discussed the Bedrock Upgrade, which serves as an enhancement to the OP network. The Bedrock Upgrade offers several notable features, including lower transition gas fees. This improvement further contributes to the scalability of Ethereum, as it reduces the cost associated with transitioning from the Ethereum mainnet to the op LY 2 network.
The Arbitrage Vault for OP and USDC:
The interview draws to a close with an intriguing discussion surrounding Perpetual Protocol’s newest release, the Arbitrage Vault tailored for OP and USDC. Yenwen takes the opportunity to shed light on this innovative vault, emphasizing its accessibility to retail users and the various strategies it offers to generate profits. The Arbitrage Vault presents an enticing opportunity for individuals to participate in advanced financial products, even without extensive knowledge or expertise in the field.
One of the key advantages of the Arbitrage Vault is its ability to capitalize on arbitrage opportunities. Arbitrage refers to the practice of exploiting price differences between different markets or exchanges. The vault employs sophisticated algorithms and market analysis to identify these disparities and execute trades automatically, allowing users to profit from the price discrepancies between OP and USDC. This strategy can prove particularly lucrative, as it takes advantage of market inefficiencies while minimizing risks for retail users.
Additionally, the Arbitrage Vault offers a user-friendly experience that caters to individuals without extensive financial knowledge or technical expertise. By providing a simplified interface and clear instructions, Perpetual Protocol aims to bridge the gap between traditional finance and decentralized finance, enabling users to participate in advanced financial products without the steep learning curve typically associated with such endeavors.
Conclusion:
Yenwen’s passion for their work becomes evident. They firmly believe that crypto, with its decentralized nature and trustless smart contracts, has the potential to reshape the traditional financial system. Yenwen’s journey into Perpetual Protocol is not merely about creating a successful venture; it is about revolutionizing the way we interact with and trust financial institutions.
Social:
Prepetual Protocol’s Website :https://perp.com/
Prepetual Protocol’s Twitter: https://twitter.com/perpprotocol
