Bitoro launches perpetual futures on Injective protocol

Bitoro, a decentralized perpetual futures trading network, announced on June 13 that the trading protocol launched on the Injective network, a decentralized blockchain focusing on Web3 financial solutions.

The perpetual futures trading protocol is also available on the Avalanche network, Arbitrum, Optimism, Mantle, and Base, in addition to Injective's De-Fi-centered ecosystem .

Following the deployment, Bitoro’s founder and CEO, Brian Purcell, said the initiative marked an important milestone for the protocol as it seeks to “expand [its] decentralized trading solutions.” He then elaborated:

By leveraging Injective's robust infrastructure, we are able to offer our users instant, low-cost trading while also introducing advanced features like institutional gateways and on-chain perpetuals for RWAs. This partnership not only enhances our platform's capabilities but also broadens our reach significantly."

Injective Labs co-founder and CEO Eric Chen also commented on the partnership. "Injective’s plug-and-play modules are continuing to empower developers to rapidly deploy groundbreaking DApps,” Chen said while remarking that Bitoro would benefit from its onchain order book.

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What are perpetual futures contracts?

Perpetual futures contracts differ from normal futures contracts in several ways, but the main defining feature of these futures contracts is that they have no expiration dates, unlike traditional futures contracts which have expiration dates. A trader with a perpetual position can keep it open indefinitely, as long as they meet the required margin rates.

Additionally, perpetual futures contracts are settled in cash, unlike traditional futures contracts in which delivery of the underlying commodity, such as wheat or oil, can settle the contract.

The role of perpetual futures

Perpetual futures contracts are designed to keep markets stable and trade at a price similar to or at the current market rate. This price stabilization is achieved through a concept known as the funding rate.

The funding rate is a recurring exchange in value between buyers (longs) and sellers (shorts) of the difference between the current market price of the underlying asset and the perpetual futures contracts.

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