🤝Perpetual exchange
Last updated
Last updated
Perpetual contracts are futures contracts without an expiry date. A regular futures contract is generally purchased with the expectation that the underlying physical goods can be delivered upon expiration. With perpetual contracts, there is no expiry date (and hence no expectation of physical delivery), meaning that these contracts are purchased for the sole purpose of speculation and hedging.
Zona is an oracle-based AMM exchange that allows users to trade synthetic assets. Zona operates similarly to GMX or Gains Network, where liquidity providers deposit funds into a vault or liquidity pool that acts as a counterparty to traders.
As a perpetual exchange that allows users to long or short the median price of real estate of a city, Zona provides broad exposure to the entire rather than just specific properties.
In contrast, fractionalized real estate only offers exposure to the specific properties that have been tokenized. Investors still face losses if those properties underperform while the broader market rises (i.e., the property is in a bad neighborhood or near a crime scene).
Perpetual exchanges also offer better liquidity and lower regulatory hurdles than both traditional and fractionalized real estate.
