Why Is a Zero Basis the Ideal State for a Perpetual Contract?
A zero basis means the perpetual contract price is exactly equal to the spot price of the underlying asset. This is the ideal state because it indicates perfect alignment, meaning the funding rate would be zero, and the mechanism is achieving its goal.
It ensures that the contract serves its primary function as a close proxy for the spot asset without artificial pricing distortions.
Glossar
Smart Contract State Management
Management ⎊ Smart contract state management involves tracking and updating the variables and data held within a deployed contract throughout its lifecycle, ensuring data integrity across all interactions.
EVM State Management
Storage ⎊ EVM State Management defines the procedural mechanism by which the Ethereum Virtual Machine handles the persistent storage and retrieval of data associated with all user accounts and deployed smart contracts.
State Confirmation
Reconciliation ⎊ State Confirmation is the process of verifying that the on-chain record of transactions and balances accurately reflects the off-chain or internal system's understanding of the ledger's current status.
Lock State Variable
Variable ⎊ A lock state variable is a specific data field within a smart contract used to manage access control to critical functions.
State Synchronization
Process ⎊ State Synchronization is the necessary process by which newly joined nodes or nodes recovering from an outage download, verify, and integrate the current, correct state of the blockchain ledger from their peers.
State Update
Computation ⎊ This refers to the on-chain processing required to transition a smart contract from one defined condition to the next, often triggered by a time-based event or an oracle feed.
Wallet State Determination
Condition ⎊ This involves the systematic determination of a wallet's current operational status ⎊ whether it is active, inactive, locked, or associated with specific smart contract interactions ⎊ at a precise moment in time.
Mid Execution State Reading
Execution ⎊ Mid execution state reading refers to the practice where a smart contract's state variables are accessed by an external call before the calling function has completed its internal state updates.
State Management Principles
Storage ⎊ State management principles dictate how the persistent data of all accounts and smart contracts, including derivatives positions and collateral balances, is structured and stored on the blockchain.
Malicious State Activity
Activity ⎊ Malicious State Activity encompasses cyber operations sponsored or directed by sovereign entities aimed at disrupting, stealing from, or gathering intelligence on foreign financial systems, including the cryptocurrency exchanges and DeFi protocols that underpin derivatives trading.