Bitoro, a decentralized perpetual futures trading network, made an announcement on June 13 about the launch of their trading protocol on the Injective network. Injective is a decentralized blockchain platform that focuses on Web3 financial solutions. The perpetual futures trading protocol is now available on various networks including Avalanche, Arbitrum, Optimism, Mantle, and Base, in addition to Injective’s De-Fi-centered ecosystem.
Following the deployment on Injective, Bitoro took to social media to share the news. Brian Purcell, the founder and CEO of Bitoro, expressed that this deployment marked a significant milestone for the protocol as it aims to expand its decentralized trading solutions. He emphasized the importance of this initiative in furthering their mission.
Eric Chen, the co-founder and CEO of Injective Labs, also commented on the partnership. He highlighted how Injective’s plug-and-play modules empower developers to quickly deploy innovative DApps, and mentioned that Bitoro would benefit from its onchain order book.
Perpetual futures contracts differ from traditional futures contracts in that they do not have expiration dates. Traders can keep perpetual positions open indefinitely, as long as they meet the required margin rates. Additionally, these contracts are settled in cash, unlike traditional futures contracts in which physical delivery of the underlying commodity is required.
The purpose of perpetual futures contracts is to maintain market stability and ensure that trading occurs at a price that reflects the current market rate. This is achieved through a mechanism called the funding rate, which involves the exchange of value between buyers (longs) and sellers (shorts) based on the difference between the current market price of the asset and the perpetual futures contracts.