Bitoro, a decentralized perpetual futures trading network, announced a significant expansion on June 13 by launching its trading protocol on the Injective network. Injective, known for its decentralized blockchain solutions focusing on Web3 financial applications, is the latest addition to Bitoro's growing list of supported ecosystems.

In addition to Injective, Bitoro's perpetual futures trading protocol is now available on several other prominent networks, including Avalanche, Arbitrum, Optimism, Mantle, and Base. This expansion broadens Bitoro's reach across a diverse range of DeFi-centered ecosystems, enhancing its accessibility and functionality for users.

Following the deployment on Injective, Bitoro’s founder and CEO, Brian Purcell, emphasized the significance of this milestone. "This initiative marks an important milestone for the protocol as it seeks to expand our decentralized trading solutions," Purcell stated. "By leveraging Injective's robust infrastructure, we are able to offer our users instant, low-cost trading while also introducing advanced features like institutional gateways and on-chain perpetuals for Real World Assets (RWAs). This partnership not only enhances our platform's capabilities but also broadens our reach significantly."

Eric Chen, co-founder and CEO of Injective Labs, also praised the collaboration. "Injective’s plug-and-play modules are continuing to empower developers to rapidly deploy groundbreaking DApps," Chen remarked. He highlighted that Bitoro would benefit significantly from Injective's on-chain order book, which is designed to provide efficient and transparent trading solutions.

Understanding Perpetual Futures Contracts

Perpetual futures contracts are a unique type of derivative that differ from traditional futures contracts in several key ways. The most notable feature of perpetual futures contracts is that they have no expiration dates, allowing traders to keep positions open indefinitely, provided they maintain the necessary margin requirements.

Another critical aspect of perpetual futures is their settlement process. Unlike traditional futures contracts, which can involve the physical delivery of underlying commodities such as wheat or oil, perpetual futures are always settled in cash. This feature simplifies the trading process and reduces the logistical complexities associated with commodity delivery.

The Role of Perpetual Futures in Market Stability

Perpetual futures contracts are designed to maintain market stability and ensure that the trading price remains close to the current market rate of the underlying asset. This stability is achieved through a mechanism known as the funding rate. The funding rate is a periodic exchange of value between buyers (long positions) and sellers (short positions). It adjusts the cost of holding a position based on the difference between the perpetual futures price and the spot price of the underlying asset. This mechanism incentivizes traders to balance the long and short positions, thereby keeping the perpetual futures price in line with the actual market price.

By launching on Injective and integrating its perpetual futures protocol with multiple blockchain ecosystems, Bitoro is poised to offer enhanced trading solutions that combine the benefits of decentralized finance with advanced trading features. This expansion is expected to attract a broader range of users, from individual traders to institutional investors, further solidifying Bitoro's position in the evolving digital asset market.