Perpetual Exchange Protocol (PERC)

The Perpetual Exchange Protocol (PERC) is designed to operate as a decentralized exchange (DEX) with a unique structure known as “slabs.” Each liquidity provider is afforded the ability to manage a dedicated 10MB slab that encompasses its own matching system, risk management, and liquidity provider (LP) operations. This innovative framework enhances the efficiency and effectiveness of trading by allowing each slab to operate independently while remaining connected to the broader market. Notably, the protocol has been developed as an advanced fork of Anatoly Yakovenko’s Percolator, with production-ready infrastructure and numerous enhancements beyond the original design.

Core concepts integral to the Perpetual Exchange Protocol include mechanisms like Reserve-Commit trading, which balances liquidity locking with trade execution to mitigate price manipulation risks. The system’s terminology introduces unique components such as slices—specific portions of reserved liquidity—and Designated Liquidity Providers (DLP), who enjoy preferential trading conditions. Additional safeguards, like the Kill Band, monitor significant price shifts and prevent trades from executing under stale price conditions. At the same time, the Aggressor Roundtrip Guard (ARG Tax) deters manipulative trading strategies by imposing extra costs on specific transactions that exhibit irregular patterns.

The technical architecture of PERC comprises several specialized programs that collectively enhance its functionality. These include the Router, Slab, Automated Market Maker (AMM), and Oracle programs, each handling distinct responsibilities such as routing, order matching, and market data aggregation. The protocol uses a unified memory architecture to enable ultra-low-latency trading, along with advanced security features such as capability-based access control and anti-replay protection. With cross-margin trading capabilities and a dynamic fee-optimization system, the Perpetual Exchange Protocol aims to deliver a seamless, secure trading experience across markets and liquidity slabs.