Pika Protocol (PIKA)

Trading

Pika Protocol is a decentralized perpetual futures exchange on Optimism that allows users to trade crypto, forex, and commodities with up to 200x leverage. It offers deep liquidity and supports many crypto pairs.

Liquidity

Users can deposit USDC into Pika Protocol’s vault, which provides liquidity by taking the opposite side of traders' positions. This vault earns trading fees, liquidation profits, and trader losses.

Token Utility

The PIKA token is used within the protocol for governance, rewards, and as a native gas token on the upcoming Pika Chain (a layer-3 app chain). Users can earn PIKA through staking, trading rewards, and participating in the ecosystem.

Platform Features

Pika Protocol offers low fees by leveraging Ethereum Layer 2 solutions, a user-friendly interface, and permissionless smart contracts that integrate with the broader DeFi ecosystem. It aims to provide a decentralized alternative to centralized exchanges with high leverage and fast execution.

Pros

• Offers decentralized perpetual swap trading with up to 100x leverage on crypto, forex, and commodities.
• Low slippage on trades, helping users get prices close to their intended orders.
• Simple and direct trading process; users can trade directly from their wallets without deposits.
• Runs on Ethereum Layer 2 (Optimism), which means lower gas fees compared to Ethereum mainnet.
• Uses Proof of Authority consensus for efficient and reliable transaction validation.
• Deep liquidity supports large trades and better market stability.
• Fully composable with DeFi systems, allowing integration with other decentralized apps.

Cons

• High leverage trading can be complex and may not suit all users.
• The PIKA token is relatively new, with limited market cap and trading volume.
• Some features and token details are still developing or pending full launch.
• Limited availability on exchanges compared to more established tokens.
• Changes to token contracts can be made by the contract creator, which may affect token behavior.

For more details, visit the official site: pikaprotocol.com

Founders of Pika Protocol

• The founder of Pika Protocol is Ethan Defillama.
• Pika Protocol was founded in 2021 and focuses on decentralized crypto trading on Ethereum Layer 2.

Investors in Pika Protocol

• Lead Investors: Spark Capital led the latest Series B funding round.
• Other Notable Investors: Greycroft, Lightspeed Venture Partners, Neo, Makers Fund, actor Jared Leto, and Atlantic Records Chairman Craig Kallman.
• Funding Rounds: Pika Protocol has raised over $135 million across multiple rounds.
• Investor Types: Includes venture capital firms, notable individuals from entertainment and music industries, and institutional investors.

These investors support Pika Protocol's growth in decentralized leverage trading and AI-driven video creation tools.

Halal Status of Pika Protocol

• No: Pika Protocol operates as a decentralized exchange for perpetual futures trading. While the base technology and exchange are generally permissible, the use of perpetual futures contracts raises concerns from an Islamic finance perspective, making it not fully halal.