Pika Protocol
  • Documentation
  • Overview
  • Features
  • Crypto, Forex and Commodity Trading
  • User Guide
    • Trading
    • Liquidity
    • Handling Abnormal Scenarios
    • Trading via Etherscan
    • Trading Pairs
  • PIKA Token
  • Reward Program
  • Contracts
  • Audit
  • Archived
    • Pika Protocol V3
    • Pika Protocol V2
    • Pika Protocol V1
      • Overview
      • Pika Exchange
        • Funding
        • Liquidation
        • Dynamic Liquidity Adjustment
        • Parameters
      • PIKA Stablecoin
        • How it Works
        • Compare with other Stablecoins
        • Pika Share
      • Participate in Pika Protocol
      • Risks
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  2. Pika Protocol V1

Overview

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Last updated 2 years ago

Pika Protocol is a stablecoin protocol backed by decentralized derivatives. It consists of two components: Pika Exchange and PIKA stablecoin.

Pika Exchange is a perpetual swap exchange that supports leverage trading. It supports token based inverse perpetual swaps. The underlying of the exchange is a virtual automated market maker(vAMM).

PIKA Stablecoin is a stable currency backed by Pika Exchange with these features:

  • Stable: it uses perpetual swap positions to back its price stability around a 1 dollar target. PIKA is minted by opening a 1x short position of an inverse perpetual swap.

  • Capital Efficient: a PIKA is minted by depositing one dollar value of supported tokens(e.g., ETH, WBTC), achieving better capital efficiency than overcollateralized stablecoins.

  • Yield-bearing: yields are generated from trading fees of perpetual contract exchange.