What are Powers
Power Perpetuals are a derivative form of perpetual futures that provide global option-like exposure. Powers are indexed to some power of an underlying asset’s index price. The funding rate, instead of simply being mark — index now becomes mark  —  index ^ P where P is some power. In the case of SOL² (aka SQUOL), P = 2 and the underlying is SOL squared. The easiest way to understand it is if the price of SOL 3x’s, then the price of SQUOL 9x’s.
We say that Powers provide option-like exposure because of the convexity of the payout. When prices move in in your favour, you earn a lot more than you would lose if prices move against you.
Things you can do with powers:
  • Hedge impermanent loss from LP positions
  • Hedge any vanilla option with the same underlying asset
  • Construct automated vault strategies
This page is under construction 🏗
In the meantime, you can read Dave White's original power perpetuals whitepaper to learn more about power perpetuals.
Last modified 3d ago
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