Perpetual Protocol, a new DeFi derivatives exchange, disclosed that the platform had already exceeded its $ 500,000 open interest (OI) limit on decentralized perpetual contracts. The announcement comes less than 24 hours after the mainnet launch of the service on Wednesday.

Following the achievement, the project has decided to double the OI limit to $ 1 million, as well as the Bitcoin personal position limit (BTC) and Ether (ETH) trading pairs. The limit was introduced to limit possible losses in the early days of the protocol’s launch. The announcement is yet another milestone for crypto derivatives reached, with the trading volume of BTC Futures OI and Bitcoin reaching new highs on Wednesday.

Perpetual Protocol uses a virtual automated market maker (vAMM) to enable perpetual swaps without the need for a centralized counterparty. The system has similarities with automated market makers (AMM) such as Uniswap.

However, unlike Uniswap, there are no liquidity providers in the Perpetual Protocol institution. So instead of storing tokens on the platform itself, tokens are domiciled in vaults with enough collateral to complete any transaction.

There is no actual token swap taking place with the vAMM as the market maker architecture only acts as a pricing engine. Thus, users do not suffer temporary loss and liquidation is limited to the individual deposits of the losing party in perpetual contract trade.

According to the project documentation, the platform reduces speed and transaction cost issues by using the xDai chain as the settlement layer. However, Perpetual Protocol says it is possible to deploy the solution on a similar Layer-2 (L-2) settlement architecture.

While the platform promises 20x leveraged perpetual swaps on any crypto asset, the initial rollout will only cover BTC and ETH against USD Coin (USDC). Perpetual Protocol secured $ 1.8 million in a seed funding round led by Three Arrows Capital in August.