Perpmarkets

perpetual futures protocol built directly on top of prediction-market share prices. Traditional prediction markets, such as binary markets with prices between 0 and 1, offer only spot exposure with no leverage and limited capital efficiency. Our system enables traders to take leveraged long and short positions on the probability of an event by using the underlying prediction-market share price as the oracle.

The project is built using an on-chain perpetual futures engine connected to any binary prediction market (like Polymarket-style CPMM markets). The core system consists of a custom smart contract that pulls share prices from the target prediction market and treats them as the index price for the perpetual.

We implemented a funding-rate mechanism tailored for 0→1 markets, adjusting for the fact that volatility and drift behave differently from traditional crypto perps. A custom AMM handles leveraged long/short positions, margin accounting, and liquidations. Off-chain keepers monitor share-price changes, execute liquidations, and maintain funding payments.