What Is a Perpetual Futures Contract in the Context of Tokenized Derivatives?
A perpetual futures contract is a derivative that, unlike a traditional futures contract, has no expiration date. In tokenized derivatives, it is a smart contract that allows traders to speculate on the price of an underlying asset with leverage.
A key mechanism is the "funding rate," which is periodically exchanged between long and short positions to keep the contract price close to the spot price.
