Fulcrom Finance

Fulcrom is a decentralized perpetual exchange on Cronos and zkSync Era that allows users to trade leveraged positions with up to 75x leverage, low fees, and zero price impact, whilst having the peace of mind that all trades and collateral are stored transparently on-chain.

Compared to traditional spot markets or futures, here are 3 main benefits you can enjoy by trading with perpetual contracts:

1. Capital Efficiency via Leverage: The advantage of trading a perpetual contract over a spot contract is that perpetuals offer the trader the ability to trade on margin: Rather than having to fund the full cost of the trade (eg. 10 ETH) , the trader has the option to put down only part of the notional in margin (eg. 1 ETH), opening up capital to be allocated elsewhere
2. No Requirement to hold Underlying Assets: A perpetual future is a derivative, which means that while the profits or losses of the trade depend on the price of the underlying – like ETH for example, there is no real need to own ETH in order to trade it. As long as there is sufficient collateral provided and a price feed, a perpetual contract can be traded for almost any token.
3. No Physical Settlement of Underlying Assets: Trades can be held with leverage in perpetuity as long as the trader has sufficient collateral to pay for ongoing fees. There is no physical settlement of the underlying – for example, ETH, as there is no expiration date. This makes trading perpetuals much easier as when a trade is closed, it can be settled straight in USDC on your account, rather than having to deal with multiple tokens or selling the futures before they expire.

By bringing perpetuals on-chain, traders also benefit from greater transparency, security and decentralization.