The Growing Need for Web3 Perpetuals and How Gate.io’s Upcoming Product Addresses Market Demands

Gate.io
3 min readJul 24, 2023

The current and upcoming years will see significant changes in the way the world’s economic and financial systems operate. Crypto and finance have experienced notable changes due to deregulation efforts, technology advancements, and competitive pressures. The market has expanded with a variety of solutions to satisfy operators, one of which is the possibility of using perpetual contracts. This article will provide an introduction to Web3 perpetuals and their uses, plus some comparison with other financial products and examples for better understanding. We’ll also discuss Gate.io’s upcoming Web3 perpetuals product that aims to address the current pain points and cater to user demands.

Understanding Perpetual Contracts:

A Gate.io Perpetual Contract is an innovative financial instrument in the crypto space, similar to a traditional futures contract but with no expiration and settlement. Traders only need to concentrate on the ups and downs of the price, making it an easy-to-use instrument. Also, it provides advanced leverage over traditional futures.

The trading of perpetual contracts is founded on an underlying Index Price. The Index Price is the average price of an asset, calculated considering the major spot markets and their relative trading volume. Therefore, unlike conventional futures, perpetual contracts are frequently traded at a price that’s equal or very similar to spot markets. However, during extreme market conditions, the mark price may diverge from the spot market price. To learn more about perpetual contracts, visit Gate.io’s comprehensive guide on perpetual futures contracts.

Pain Points of Existing Web3 Perpetuals Platforms:

  1. Limited liquidity: Many Web3 perpetuals platforms suffer from low liquidity, resulting in increased slippage and reduced opportunities for traders.
  2. High fees: Trading fees on some platforms can significantly erode profits for traders, especially those who engage in high-frequency trading.
  3. Complex user interfaces: Navigating and using some Web3 perpetual platforms can be daunting for new users due to their complexity.
  4. Security concerns: Decentralized platforms can be susceptible to hacks and exploits, putting users’ funds at risk.

The Market’s Need for Gate.io’s Web3 Perpetuals:

  1. Enhanced liquidity: Gate.io’s upcoming product aims to provide deep liquidity, ensuring a smoother trading experience and minimized slippage for its users.
  2. Competitive fees: By offering competitive trading fees, Gate.io’s platform will allow traders to maximize their profits and capitalize on market opportunities.
  3. User-friendly interface: Gate.io’s Web3 perpetuals product will feature an intuitive interface, making it accessible to both novice and experienced traders alike.
  4. Robust security: The platform will incorporate advanced security measures to protect users’ funds and ensure a safe trading environment.

Conclusion:

As the Web3 market continues to expand, the need for reliable and efficient Web3 perpetuals platforms is becoming increasingly apparent. Gate.io’s upcoming product aims to address the current market pain points and cater to the growing demands of users, providing a comprehensive solution for Web3 perpetuals trading. By understanding the mechanics of perpetual contracts and the advantages they offer, traders can effectively navigate this rapidly evolving market and capitalize on emerging opportunities.

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