> For the complete documentation index, see [llms.txt](https://docs.predy.finance/predy-v2-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.predy.finance/predy-v2-documentation/predy-1/eth.md). # ETH-Perpetual ### Overview The ETH perpetual is designed to give leveraged exposure to ETH, it is referenced to the Chainlink ETH price oracle. The Predy ETH perpetual is similar to perpetual ETH futures that can be traded on many centralized exchanges. The ETH perpetual contract has a delta of 1, meaning that if the index price of ETH goes up by $1, the contract price will also change by $1. ### How to Use the Strategy #### Long The ETH perp can be longed anytime you're bullish on the ETH price. The funding rate needs to be taken into consideration with the positioning. #### Short The ETH perp can be shorted anytime you're bearish on the ETH price. The funding rate needs to be taken into consideration with the positioning. ### Technical Details $$ \begin{align\*} \&Symbol = ETH-PERP-USDC &\\ \\ \&Underlying Asset = ETH &\\ \&Index\_{price} ={S}, (S = ETH\_{price} \ from \ Chainlink) &\\ \\ &\Delta \ Delta =\frac {\delta {V}}{\delta S} \approx \frac {\delta S}{\delta S} = 1 = Constant &\\ &\Gamma \ Gamma =\frac {\delta^2 {V}}{{\delta} S^2} \approx \frac {\delta^2 S}{{\delta} S^2} = 0 &\\ \\ & where, \ V = Index\_{price} \ , Trade\_{price} \ should \ be \ used \ by \ strict \ definition &\\ \\ \&Trade\_{price} =Index\_{price} \* (1+FundingRate+TradingFeeRate) &\\ \&TradingFeeRate = 0.05 % \\ \&FundingRate = \beta \* f( Trade\_{amount},AMM\_{liquidityStatus})) &\\ & \beta =0.0022 & \\ & (it \ shall \ be \ change \to \ 0.0069 \ \ from \ next \ 9:00 \ 15th \ April \ UTC \ ) & \\ &\beta = 0.004 \ on \ Version \ 2.0.2 & \\ \end{align\*} $$ $$ \begin{align\*} f( Trade\_{amount},AMM\_{liquidityStatus}) &= \frac{\int\_L^{L+\Delta L}\int\_m^{m+\Delta m}(\frac{x}{y})^3dxdy}{\Delta L \Delta m} &\\ &=\frac{m^3+\frac{3}{2}m^2\Delta m + m\Delta m^2+\frac{\Delta m^3}{4}}{L*L*(L+\Delta L)^2}\*(L+\frac{\Delta L}{2}) &\\ &\approx ( \frac{m}{L} )^3 = (UtilizationRate\_{AMM})^3&\\ \\ \&m = Liquidity\_{Locked} \ before \ The \ Trade &\\ &\Delta m = Liquidity\_{Locked} \ for \ The \ Trade &\\ \&L = Liquidity\_{total} \ before \ The \ Trade &\\ &\Delta L = Liquidity\_{changed} \ for \ The \ Trade&\\ \\ &(\frac{x}{y})^3 \ => \ k\*(\frac{x}{y}) + (1-k)\*(\frac{x}{y})^3&\\ \&where, k=0.3, \ 0\