Perpetual Protocol · vAMM mechanism simulation

Traders open leveraged longs/shorts against a virtual x·y=k curve with no real liquidity — collateral sits in a separate vault. Chronic long/short skew forces the insurance fund to pay funding out of pocket. Edit the parameters or trigger the historical failure mode.
Traders open long / short vAMM curve (x·y=k) mark $2,000.00 50% long / 50% short Index oracle spot TWAP $2,000.00 Collateral vault $0 USDC locked Insurance fund $500,000 EMERGENCY HALT
Positions opened
0
vAMM mark vs. index
$2,000.00 vs $2,000.00
Net open-interest skew
50% long / 50% short
Insurance fund
$500,000
Parameters — edit me
60%
2000
1.0×
5×
1.2/s
Controls

Illustrative simulation. Defaults mirror the researched Perpetual Protocol v1 mechanism (virtual x·y=k curve, USDC collateral vault, hourly funding vs. an index TWAP, insurance fund funded by trading fees) but trade sizes, timing and the price walk are randomized for visualization — not live onchain data. Drag the sliders, or trigger the historical skew crash that drained the insurance fund and forced an emergency halt. Part of The Onchain Experiment Atlas.