FAQs

1. How Do Perpetuals Work?

Perpetual futures (or “perps”) are derivative contracts that let you speculate on an asset’s price indefinitely. There’s no expiration date, so you can hold any position as long as you have enough margin.

To keep the contract’s price aligned with the asset’s actual (spot) price, perps use a mechanism called the funding rate, which is a regular payment exchanged between traders:

• If the perpetual price is above spot, longs pay shorts.

• If it’s below, shorts pay longs.

Defi App performs the funding transaction every 8 hours.

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2. How Are Perps Implemented in DeFi App?

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3. What Are Oracle Sources?

An oracle is a bridge between on-chain systems and off-chain data (specifically, price feeds). Because smart contracts can’t fetch external data on their own, oracles provide trustworthy, tamper-resistant pricing so protocols can handle derivatives, liquidations, and valuations.

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4. Which Oracle Sources Does DeFi App Use?